Most landlords in San Francisco require prospective tenants to deposit a specified amount of money as a security deposit for unpaid rent and damage to the premises. The terms of the deposit should be spelled out in the lease, but California statutes impose certain limits on the terms of the deposit, including the maximum amount a landlord may charge and requirements for prompt refund of unused deposit.
Payment and return of the deposit
The lease should specify the amount of the required deposit and when it is due. Most landlords require payment of the deposit before the tenant take possession. California law limits the amount of deposit to two months for an unfurnished apartment and three months for a furnished apartment. A California landlord must return the unused portion of the deposit not more than 21 days after the tenant vacates the premises.
Payment of rent
The amount of rent set by the landlord represents the landlord’s income from the property. A careful landlord will ensure that the lease specifies several aspects of the payment of rent:
- The monthly amount of rent
- The date on which the rent must be paid
- The method of payment
- The place of payment
- Calculation and payment of late fees
Damage to the premises
The landlord is required to maintain the premises in a good and habitable condition. The tenant is prohibited from committing waste on the premises while in possession. If the landlord believes that the tenant has failed to maintain the premises subject only to reasonable wear and tear, the amount of these damages can be set off against the security deposit. If the tenant disagrees with the landlord’s opinion, the tenant can refuses to release the landlord from any obligation to refund the security deposit, and the matter is usually settled in court – an outcome that can be both inefficient and expensive.