1. How Much Security May a Landlord Collect?
Civil Code § 1950.5 generally caps residential security at one month's rent. Calling a payment a pet or key deposit does not place it outside the limit. Check charges before signing.
Check the Limit and Small-Landlord Exception
- The standard cap is one month's rent, separate from the first month's rent.
- A qualifying individual owner or eligible LLC may charge up to two months' rent.
- That exception does not apply when the prospective tenant is a service member.
The exception requires no more than two rental properties containing four units in total. The cap generally excludes deposits collected before July 1, 2024.
Identify Charges That Count As Security
Refundable pet, key, and cleaning deposits generally count toward the same cap. Security cannot be declared nonrefundable in the rental agreement. Certain advance rent payments under qualifying longer leases follow a separate statutory exception. Other charges may raise tenant rights and protection questions.
2. When Must the Landlord Return the Deposit?
The 21-day period begins when the tenant vacates. Within that period, a landlord must return the balance and account for deductions. Unfinished repairs do not automatically extend the deadline.
Follow the Move-Out Accounting Schedule
| Stage | What Happens |
|---|---|
| Before move-out | Provide notice of the option to request an initial inspection, subject to exceptions. |
| After the tenant vacates | Record conditions and calculate authorized deductions. |
| Within 21 calendar days | Return the balance and send the deduction statement with required records. |
If rent or security was paid electronically, electronic refund rules generally apply unless the parties agree otherwise in writing.
Handle Work Not Finished within 21 Days
If repairs cannot reasonably finish or invoices remain unavailable, the initial statement may use a good-faith estimate. The landlord must provide final records and adjustments within 14 days after completion or receipt. A security deposit refund dispute may depend on both statements.
3. What Deductions Does the Law Allow?
Landlords may recover specified losses, but they cannot charge for normal aging or conditions that existed before the tenancy. Charges must be reasonably necessary to restore the original condition, excluding ordinary wear. Photos and receipts help distinguish them.
Compare Authorized and Improper Charges
| Potentially Authorized | Generally Improper |
|---|---|
| Unpaid rent or tenant-caused damage | Ordinary wear or existing defects |
| Cleaning needed to restore move-in cleanliness | Automatic cleaning fees regardless of condition |
| Covered missing furnishings or keys | Upgrades beyond reasonably necessary restoration |
Carpet cleaning cannot be charged solely because a tenancy ended.
Review Receipts and the $125 Rule
Repair and cleaning deductions generally require invoices or details of work performed. The $125-or-less exception, or a valid waiver, may excuse automatic attachments—not itemization. A tenant's timely request can require supporting records within 14 days.
4. Which Photos and Inspection Records Matter?
Recent amendments make photographs especially relevant to repair and cleaning deductions. A tenant's initial inspection is a chance to address identified problems before leaving. Both sides should retain condition records.
Document Move-in and Move-Out Conditions
- For tenancies beginning July 1, 2025, or later, landlords must photograph the unit at the start.
- Since April 1, 2025, deductions for repair or cleaning require photos before and after the work.
- After notice of the right to an initial inspection, tenants may request one, generally no earlier than two weeks before departure.
Subject to exceptions, landlords must notify tenants and provide an inspection statement.
Connect Each Deduction to Evidence
Keep the lease, inspection notes, photographs, estimates, and receipts together. When deducting repair or cleaning charges, landlords must supply the required photographs and cost explanation. Compare charges with move-in and move-out conditions.
5. What Can a Tenant Do about an Unpaid Deposit?
A late refund does not automatically prove misconduct. Tenants can request repayment in writing and identify unsupported charges. A court may resolve remaining disputes.
Send a Specific Written Demand
- Identify the move-out date, deposit paid, and amount disputed.
- Attach photographs, payment records, and the landlord's statement.
- Keep copies of letters, emails, and any response.
A security deposit demand letter can set out the disagreement before litigation.
Assess Court Remedies and Bad Faith
Depending on the amount and issues, a dispute may proceed in small claims or civil court. Bad-faith retention may support up to twice the deposit in statutory damages, besides actual losses. The landlord bears the burden of proving that claimed deductions were reasonable and legally authorized.
6. Frequently Asked Questions
Can a tenant apply the deposit to the last month's rent?
Not automatically. The deposit does not replace rent simply because the tenancy is ending; an agreement or other legal basis is needed.
Can a landlord charge a separate pet deposit?
A refundable pet deposit generally counts toward the applicable security cap rather than creating another allowance.
What happens when the owner sells the rental property?
The outgoing landlord generally must transfer the remaining security to the successor or return it with the required accounting.
Can roommates receive their refunds separately?
The landlord and all adult tenants may agree in writing on an allocation. Otherwise, the statute generally requires a check payable to all adult tenants on the lease.
7. Review a Security Deposit Dispute with Sjkp
SJKP's attorneys can assess a lease, payment records, photographs, and deduction statements against the statutory requirements. Bring the move-out date and correspondence to discuss claims, defenses, and options.
16 Oct, 2026
