Security Deposit in California
California limits residential security deposits to one month's rent for most landlords under AB 12 (Civil Code § 1950.5), effective July 1, 2024. Landlords owning two or fewer residential properties with no more than four units total may charge up to two months' rent. The deposit must be returned within 21 days of move-out with an itemized statement of any deductions.
Last reviewed against current law: 2026-05-14
How California law treats security deposit
Civil Code § 1950.5, as amended by AB 12, sets the deposit cap at one month's rent regardless of furnished or unfurnished status. The "small-landlord" exception applies only to natural-person landlords with two or fewer residential rental properties comprising no more than four units in total; LLCs and REITs are excluded.
Within 21 calendar days after the tenant vacates, the landlord must return the deposit or provide an itemized statement listing deductions for unpaid rent, repair of damages beyond ordinary wear and tear, and cleaning necessary to return the unit to its move-in condition. Deductions over $125 require attaching receipts or, when work is performed in-house, a good-faith estimate.
AB 2801 (effective July 1, 2025) requires landlords to photograph the unit at move-in and move-out and provide those photographs to the tenant alongside the itemized statement. Willful retention of a deposit beyond the 21-day window exposes the landlord to statutory damages of up to twice the deposit amount, on top of the deposit itself.
Primary sources
- California Civil Code § 1950.5
- California AB 12 (Security Deposit Cap)
- California AB 2801 (Move-In/Out Photography)
Frequently asked questions — California
How much can a California landlord charge for a security deposit?▾
One month's rent for most residential landlords (AB 12). Up to two months for small natural-person landlords with two or fewer rental properties and no more than four units total.
When must the deposit be returned?▾
Within 21 calendar days of move-out, with an itemized statement of any deductions. Deductions over $125 require receipts or in-house work estimates.
What are the penalties for wrongful retention?▾
Up to twice the deposit amount in statutory damages, on top of the wrongfully retained amount, plus attorney fees in some cases. Bad-faith retention can also trigger punitive damages.