Civil Code

Security Deposit Regulations for California Tenants

What Is a Security Deposit?

It is common practice for a landlord to charge a “security deposit” before renting out a property to a tenant.

A tenant pays this before moving in, and the landlord may use it for repairs or unpaid rent. The property owner must return the remaining balance to the tenant once the tenant stops living at the property. Terms like “cleaning fee,” “animal deposit,” and “key deposit” all qualify as types of security deposits.

Is There a Limit to How High a Security Deposit Can Be in California?

California limits security deposits based on whether the property is furnished or not. Landlords can charge up to 2 months rent for an unfurnished property, and for 3 months rent for furnished ones.

What Rights Do Tenants Have in Regards to Security Deposits?

First, it is required that all California security deposits be refundable. Under no circumstance can a landlord require you to pay a nonrefundable security deposit upfront in addition to rent. 

Next, once it is time to refund the security deposit, the landlord must do so within 21 days of the tenant moving out. When the remaining amount is returned, the landlord must include an itemized list that describes all of the deductions to the security deposit.

How Does Deposit Refunds Work In California?

It’s important to note that any attempt to circumvent the deposit refund policy is a violation of California law. For example, if a landlord refuses to return a deposit without providing a list of withholdings, this is already grounds for a complaint. California law gives tenants the ability to seek a refund of amounts wrongfully withheld. Also, compensation for additional damages.

In addition, if a landlord withholds from a deposit for normal wear and tear such as:

1. scuffs on carpets
2. discolored walls
3. slightly scratched floor

Which is considered “natural”, this would be considered a violation. Normal wear and tear, should not be compensated from the deposit. Only negligent and willful damage caused by the tenant can be grounds for a hold.

It is worth remembering that the landlord is required to provide the former tenant with a list of withholdings with receipts. Which confirms the value of each of them, if the amount of the withholding exceeds $125. Otherwise, the landlord risks being held liable for up to double the amount of the wrongfully withheld deposit.

If you believe your landlord has violated your rights in withholding your deposit, KAASS LAW is here to help. We can analyze your lease, correspondence with your landlord, and other documents. And then build a competent defense and recover the funds owed to you. Don’t delay, the sooner you seek legal advice, the better your chances of a successful resolution.

What Rights Do Landlords Have in Regards to Security Deposits?

Civil Code section 1950.5 (b) covers the 4 reasons that California landlords may deduct money from a security deposit. They include: 

  • Paying for unpaid rent
  • Fixing damages beyond ordinary “wear and tear,” caused to the property by the tenant/their guests.
  • Paying cleaning fees that restore the property to its level of cleanliness before the tenant moved in. (I.E. “move-in ready)
  • Covering future costs for repairs of damages caused by the tenant. (The contract must explicitly mention this.)

What Are the Common Ways That Parties Start Disputes Regarding Security Deposits?

As mentioned earlier, there are many different terms that refer to fees that are classified as security deposits in California (cleaning fee, animal deposit).

No matter what the landlord calls the upfront payment, it is subject to the same regulations and limits as security deposits. This means that if a landlord already collected a security deposit in the amount equal to 2 months of rent for an unfurnished dwelling, he could not charge any more in different types of fees because it would put him over the limit. The point is that upfront fees cannot combine to exceed the California limit even if they are seemingly not a part of the security deposit.

Many disputes arise from tenants claiming that their landlord is making illegal deductions to their security deposit. Some examples of this could include:

  • A landlord deducts half of a tenant’s security deposit because they want to fix a leak in the roof. The tenant did not cause the leak, and the dwelling has a history of roof leaks.
  • A landlord charges a $3,000 cleaning fee to a tenant so they can buy brand new kitchen countertops for the property.
  • The landlord deducts a month of rent from the security deposit because the tenant paid their rent 3 days late in August.

KAASS LAW can help protect your rights regarding security deposits.

Kaass AK

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