Landlords in California are allowed under state law to ask for a security deposit. However, California regulates this common practice, at least for residential rental properties.
According to the Office of the Attorney General, here are some highlights of California’s security deposit rules:
- First and foremost, a security deposit is not the landlord’s money. They owe it back within 21 days of a tenant’s moving out of the rental.
- Landlords may only ask for up to one month’s rent as a security deposit. Some smaller landlords may be able to collect a larger deposit.
- Landlords are limited on what they can apply a security deposit to. Basically, it must be put to back rent or to repairs that are above and beyond normal wear and tear. Cleaning charges are allowed if the rental was not as clean as when the tenant moved in, but tenants are not expected to leave the property better than they found it.
- A landlord may apply a security deposit to repairing or replacing personal property like furniture, but only if the landlord’s lease explicitly allows them to do so.
- Landlords must give a detailed and documented list of deductions to a tenant if they intend to withhold a part of the deposit. All charges must be reasonable.
- Tenants are entitled to have a walkthrough inspection before they move out, so they have a reasonable chance to correct any issues themselves.
Also, as the office mentions, many local governments have additional rules about security deposits. Landlords in the Bay Area communities should make sure they understand their obligations under local rules.
Those who rent properties for extra income should know their obligations
California property owners who offer rentals should make sure they understand their obligations with respect to security deposits and make sure that their documents and practices comply with these regulations. Not doing so can lead to significant legal and financial consequences.