1. Conditions for Keeping Part of a Security Deposit
A landlord may retain only amounts reasonably necessary for permitted purposes. A lease clause does not authorize charges for existing damage, ordinary wear, or unnecessary work.
Permitted Charges and Ordinary Wear
Deductions generally cover unpaid rent, tenant-caused damage beyond ordinary wear, and cleaning needed to restore the original level of cleanliness. The agreement may also authorize qualifying charges for furnishings or other personal property.
In landlord-tenant disputes, faded paint differs from a burn or broken fixture. Replacement charges should account for age and remaining useful life rather than automatically charging for a new item.
The unit’s condition at move-in provides the baseline. A landlord cannot charge the departing tenant to correct earlier damage or leave the unit cleaner than it originally was. Records of prior repairs and installation dates help distinguish a tenant’s responsibility from routine turnover expenses.
Inspection and Photo Requirements
Subject to statutory exceptions, landlords must notify tenants of their right to request a pre-move-out inspection. If requested, it generally occurs during the final two weeks, allowing tenants to address identified conditions.
Move-in photos are mandatory for tenancies starting on or after July 1, 2025. Since April 1, 2025, landlords must also photograph conditions before deductible repairs or cleaning and after completing that work. Required photos must accompany the deduction accounting.
Photos should connect the claimed damage to a specific location and completed repair. A close-up may show a stain without establishing how much carpet needed treatment. Inspection notes and invoices should explain the scope and cost of the work.
2. The 21-Day Refund and Accounting Deadline
Within 21 calendar days after the tenant vacates, the landlord generally must return the remaining deposit and provide an itemized deduction statement. Incomplete work does not suspend this obligation.
Supporting Costs and Estimates
Contractor charges generally require invoices or receipts. Landlord or employee labor requires a work description, time spent, and a reasonable hourly rate. Materials require supporting cost records.
A good-faith estimate may apply when qualifying work cannot reasonably finish within 21 days or an outside invoice remains unavailable. Final accounting, supporting documents, and any additional refund are due within 14 calendar days after completion or receipt of the missing invoice, as applicable.
The statement should distinguish actual expenses from estimates. If the final charge is lower, the landlord must return the difference. A general label such as “repairs” leaves both the work and its connection to the tenant unclear.
Documentation Exceptions and Electronic Refunds
An exception to providing certain cost documents applies when combined repair and cleaning deductions do not exceed $125 or after a valid statutory waiver. The itemized statement remains necessary. Tenants may request the cost documents within 14 calendar days after receiving it; landlords then have 14 calendar days to respond.
Since January 1, 2026, electronic receipt of rent or the deposit generally requires an electronic refund unless the parties agree otherwise in writing. Written notice, account designation, and statement-delivery requirements also apply.
Keep delivery records for both the accounting and refund. Proof of a transfer establishes payment, but does not establish that the landlord supplied the required deduction statement or supporting documents.
3. Interest Obligations and Improper Withholding
California has no general statewide deposit-interest requirement, but local ordinances may require payment. Interest obligations and unlawful withholding involve separate legal questions.
Local Rules and Bad-Faith Retention
San Francisco generally requires simple interest on residential deposits held for at least one year, subject to exceptions. Check the property’s applicable ordinance for coverage, rates, and payment dates.
Missing the accounting deadline can defeat the right to retain the deposit without necessarily eliminating separate damage claims. Bad-faith retention may support actual damages plus statutory damages of up to twice the deposit. In a landlord lawsuit, that additional award depends on the evidence rather than disagreement alone.
4. Frequently Asked Questions
Ownership changes and lease terms raise additional questions about responsibility for the funds.
The outgoing owner generally must transfer the remaining deposit to the successor with required notice or return it after lawful deductions. A sale does not cancel the tenant’s deposit rights.
A residential lease cannot make a security deposit nonrefundable. Calling the payment a cleaning or damage deposit does not permit automatic forfeiture.
5. Reviewing Disputed Charges before Litigation
When records are missing or deadlines have passed, a landlord-tenant consultation can assess the charges and accounting separately. Relevant records include the lease, payment ledger, inspection reports, photos, invoices, communications, and refund-delivery records.
14 Oct, 2026
