California Lease Agreement Builder — Civ. Code § 1950.5 and AB 12 Compliant
Generate a California residential lease that reflects current law: the AB 12 one-month security deposit cap effective July 1, 2024, the § 1950.5 refund rules, and AB 1482 statewide rent caps and just-cause protections.
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Legal Requirements in California
Limit the security deposit to one month's rent (furnished or unfurnished) for deposits collected on or after July 1, 2024, under AB 12 amending Civ. Code § 1950.5(c).
Return the deposit, or an itemized statement of deductions with supporting documents for repairs over $125, within 21 days after the tenant vacates (Cal. Civ. Code § 1950.5(g)).
Limit deductions to unpaid rent, repair of tenant-caused damage beyond normal wear and tear, and contractually permitted cleaning (Cal. Civ. Code § 1950.5(b)).
Comply with AB 1482 rent caps of 5% plus regional CPI, never exceeding 10% in any 12-month period, for covered units (Cal. Civ. Code § 1947.12).
Provide just-cause termination grounds and, where required, relocation assistance after 12 months of tenancy for covered units (Cal. Civ. Code § 1946.2).
Offer the tenant an initial move-in inspection option and a pre-move-out inspection before deducting from the deposit (Cal. Civ. Code § 1950.5(f)).
Key Statutes & Regulations
- Cal. Civ. Code § 1950.5 — Security deposits (one-month cap, AB 12, eff. July 1, 2024)
- Cal. Assembly Bill 12 (2023) — Security deposit limitation (eff. July 1, 2024)
- Cal. Civ. Code § 1947.12 — Tenant Protection Act rent cap (5% + CPI, max 10%) (current 2026)
- Cal. Civ. Code § 1946.2 — Tenant Protection Act just-cause for termination (current 2026)
- Cal. Civ. Code § 1954.50 et seq. — Costa-Hawkins Rental Housing Act (current 2026)
Common Pitfalls
- •Collecting more than one month's rent as a deposit without qualifying for the narrow small-landlord exception (AB 12 / § 1950.5(c)).
- •Missing the 21-day deposit deadline or omitting receipts for repairs and cleaning that exceed $125 (§ 1950.5(g)).
- •Raising rent above the AB 1482 cap of 5% plus CPI (max 10%) on a covered unit (§ 1947.12).
- •Assuming a single-family home is automatically exempt from AB 1482 without serving the required Costa-Hawkins exemption notice.
Local Terminology
- AB 12
- The 2023 statute amending Civ. Code § 1950.5 to cap residential security deposits at one month's rent for deposits collected on or after July 1, 2024.
- Just cause
- The set of permitted termination grounds under the Tenant Protection Act (Civ. Code § 1946.2) that apply after a tenant has occupied a covered unit for 12 months.
- Costa-Hawkins
- The Costa-Hawkins Rental Housing Act (Civ. Code § 1954.50 et seq.), which exempts certain units, such as single-family homes and condos, from local rent control.
How California Differs
California caps deposits at one month's rent under AB 12, far stricter than the prior two-month (unfurnished) and three-month (furnished) limits.
A narrow exception lets a small landlord (a natural person, or an LLC of natural persons, owning no more than two properties totaling four units) collect up to two months' rent, but never from a service member.
California requires return within 21 days, shorter than the 30-day norm in Texas and Florida.
AB 1482 imposes statewide rent caps and just-cause eviction rules, while Costa-Hawkins exempts most single-family homes, condos, and units built within the last 15 years.
Frequently Asked Questions
What is the maximum security deposit in California in 2026?
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The maximum is one month's rent for deposits collected on or after July 1, 2024, under AB 12 amending Civ. Code § 1950.5, whether the unit is furnished or unfurnished. A narrow exception allows certain small landlords to collect up to two months' rent, but never from a service member.
How long does a California landlord have to return a deposit?
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A California landlord must return the security deposit, or an itemized statement of deductions, within 21 days after the tenant moves out under Civ. Code § 1950.5(g). For any repair or cleaning charge over $125, the landlord must also attach copies of invoices, receipts, or estimates.
Who qualifies for the two-month small-landlord deposit exception?
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Under AB 12, a landlord may collect up to two months' rent only if it is a natural person, or an LLC whose members are all natural persons, that owns no more than two residential rental properties totaling no more than four units. Even then, the cap stays at one month's rent for service members.
How much can a California landlord raise the rent?
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For units covered by the Tenant Protection Act (Civ. Code § 1947.12), annual rent increases are capped at 5% plus the regional change in CPI, and never more than 10% in any 12-month period. Single-family homes, condos, and units built within the last 15 years are generally exempt under Costa-Hawkins.
What deductions can a California landlord make from a deposit?
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Under Civ. Code § 1950.5(b), a California landlord may deduct only for unpaid rent, repair of damage beyond normal wear and tear, cleaning to return the unit to its move-in condition where the lease allows, and restoration of personal property. Normal wear and tear cannot be charged to the tenant.
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