California Security Deposit Law: Limits, Deadlines & Deductions
Most California landlords can collect no more than one month's rent as a security deposit, and must return it with an itemized statement within 21 days of move-out. Qualifying small landlords can still take two months. Here is how that part of California landlord tenant laws works in practice: what counts toward the cap, the photo rule, fair deductions and the cost of getting it wrong.
By LandlordTested editorial teamLast reviewed
California deposit rules
- Maximum deposit
- 1 month's rent (AB 12, deposits collected on/after July 1, 2024). Small-landlord exception: a natural person, or a family LLC/trust, owning no more than 2 residential rental properties with no more than 4 units total may charge up to 2 months (exception does not apply to service members).
- Return deadline
- 21 days
- Interest on deposits
- Required by some cities
- Itemized list of deductions
- Yes
- Statute
- Cal. Civ. Code § 1950.5
General information, not legal advice. Last legal review October 18, 2026. Laws change; check the statute or a local landlord-tenant attorney before acting.
On this page
Who can still collect two months
AB 12 cut the cap to one month’s rent for deposits collected on or after July 1, 2024. The two-month exception is narrow. It covers a natural person, or a family LLC or family trust, that owns no more than two residential rental properties with no more than four units between them. It never applies to a tenant who is a service member.
Count properties and units together. A couple who owns a duplex in Fresno and a condo in Sacramento has two properties and three units, so they qualify. Add a third property, even a single studio, and they drop to the one-month cap on every new lease.
What counts toward the cap
California treats nearly every up-front payment except the first month’s rent as security. A pet deposit, a key deposit, a “cleaning deposit” and prepaid last month’s rent all count. If your rent is $1,600 and you’re under the one-month cap, the total of all of those can’t pass $1,600.
You also can’t label any part of the deposit nonrefundable. A flat move-out cleaning fee written into the lease doesn’t get around the rules; cleaning comes out of the deposit only if the unit actually needs it. And under fair housing rules, a tenant with an assistance animal can’t be charged a pet deposit.
Holding it and paying interest
State law doesn’t require a separate account or interest. Several cities do, including San Francisco, Berkeley and Santa Monica, each with its own rate and payment schedule. Even where it’s not required, keeping deposits in their own account makes the 21-day accounting much less painful.
The 21-day deadline
The clock starts when the tenant moves out. Within 21 days you must return the deposit, or send an itemized statement and the remaining balance. Mail it to the forwarding address the tenant gave you, or the last known address if they gave none.
Two documentation rules apply to the statement:
- Receipts over $125. Any single deduction over $125 needs a copy of the invoice or receipt. If you did the work yourself, describe it and show the time spent and the hourly rate you charged.
- Repairs not done yet. If the work can’t be finished within 21 days, send a good-faith estimate with the statement, then send the receipts once the repair is complete.
The photo rule
AB 2801 made photos part of the law. For move-outs since April 1, 2025, you need dated photos of the unit after the tenant leaves and before you repair anything. For tenancies starting on or after July 1, 2025, you also need dated move-in photos. Without them, a deduction is hard to defend.
AB 2801 also limits cleaning charges to what it takes to return the unit to its condition at move-in. You can’t bill a tenant to bring a tired unit up to show-ready.
Damage versus normal wear and tear
| Usually normal wear and tear (no charge) | Usually damage (deductible) |
|---|---|
| Faded or lightly scuffed paint after a few years | Holes in walls, crayon or marker, unapproved paint colors |
| Worn carpet in walkways | Pet stains, burns or tears in the carpet |
| Loose door handles, minor wobble in cabinets | Broken doors, missing blinds, cracked countertop |
| Light grime from normal living | An oven or fridge left caked with food, trash left behind |
Unpaid rent is also deductible, along with the cost of restoring the unit to move-in cleanliness.
A worked example at $1,600 a month
Your Bakersfield single-family home rents for $1,600, and you collected a $1,600 deposit (one month). The tenant moves out on March 31 and leaves a forwarding address.
Your move-out photos show a fist-size hole in a bedroom wall and an oven that hasn’t been cleaned in a year. The carpet is worn in the hallway and the paint has faded near the windows.
- Drywall patch and paint touch-up by a handyman: $190, with invoice (over $125, so the receipt goes in the envelope)
- Oven cleaning: $95 (under $125, so a description is enough, though you’ll keep the photo)
- Worn carpet and faded paint: $0, both normal wear and tear
Total deductions: $285. You mail an itemized statement and a check for $1,315 no later than April 21.
If you qualified for the small-landlord exception and collected two months ($3,200), the same deductions would leave a refund of $2,915.
What bad-faith withholding costs
If a court finds you kept a deposit in bad faith, it can order you to repay what you wrongly kept plus a penalty of up to twice the deposit. On a $1,600 deposit, that’s as much as $3,200 on top of the refund. Late statements, missing receipts and missing photos all make bad faith easier to argue.
Some cities, especially those with rent boards, add their own deposit rules on top of state law. If your rental is in Los Angeles, San Francisco, Oakland or another city with local tenant ordinances, read the local rules too. This page is general information, not legal advice; for a disputed deposit, talk to a local landlord-tenant attorney.
Questions landlords ask
The questions we get most, each answered in a paragraph.
Can a California landlord charge two months' rent as a deposit?
Only if you qualify as a small landlord. You must be a natural person, or a family LLC or family trust, owning no more than two residential rental properties with no more than four units in total. Even then, a service member can't be charged more than one month. Everyone else is capped at one month's rent for deposits collected on or after July 1, 2024.
When does the 21-day deadline start?
The clock starts when the tenant vacates the unit. Within 21 days you must either return the full deposit or send an itemized statement of deductions along with whatever balance is left. If repairs can't be finished in time, you can send a good-faith estimate and follow up with the receipts once the work is done.
Can I charge a separate pet deposit in California?
You can collect money for a pet, but it counts toward the same deposit cap. California treats almost any up-front payment other than the first month's rent as security, whatever you call it. So a $1,600 rent with a one-month cap means $1,600 total across the regular deposit and the pet deposit. Assistance animals can't be charged a pet deposit at all.
Do California landlords have to pay interest on deposits?
Not under state law. Some cities do require it, including San Francisco, Berkeley and Santa Monica, and the rate and payment schedule are set locally. If your rental is in a city with a rent board, check its deposit rules before move-in so you can set up the account correctly from the start.
What happens if I keep a deposit in bad faith?
A court can order you to return what you wrongly kept and add a penalty of up to twice the deposit amount. Missing the 21-day deadline or skipping the itemized statement also makes it much harder to defend any deduction. Dated photos, receipts and a clear statement sent on time are the best protection you have.