Landlord guides / California law

California security deposit rules for landlords (2026)

California tightened its deposit rules in 2024 and 2025. Here's what changed, what you can deduct, and the deadlines that matter, with links to the law itself.

By the EC Rental team8 min readUpdated October 7, 2026

Security deposits in California are governed by Civil Code section 1950.5. Two recent laws changed it: AB 12, which capped deposits starting July 1, 2024, and AB 2801, which added photo requirements in 2025.

How much you can collect

LandlordMaximum deposit
Most landlords (since July 1, 2024)One month's rent, furnished or unfurnished
Small landlords: a person, or an LLC whose members are all people, who owns no more than two residential rental properties with no more than four units in totalUp to two months' rent
Small landlord renting to a service memberOne month's rent

"Deposit" includes any upfront payment besides the first month's rent, whatever it's called (cleaning fee, move-in fee, last month's rent).

What you can deduct

Ordinary wear and tear can't be charged. Faded paint after a few years, carpet worn along walking paths and a few small nail holes are typical examples.

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The pre-move-out inspection

When a tenant gives notice, you must tell them in writing that they can ask for an initial inspection and be present for it. That inspection happens no earlier than two weeks before move-out. Afterward you give them an itemized list of the repairs or cleaning you'd deduct for, so they have a chance to fix those things themselves. This step is easy to forget and it's required.

Photos are now required

Those photos go with the itemized statement you send the tenant. A dated, room-by-room inspection report with photos covers this. Our move-in inspection checklist walks through it.

The 21-day deadline

Within 21 days after the tenant moves out, you must return the deposit, or send an itemized statement of deductions along with whatever balance is left. For repairs or cleaning of $125 or more, include copies of the receipts or invoices. If the work isn't finished within 21 days, send a good-faith estimate and follow up with receipts within 14 days of the work being done.

Getting it wrong is expensive. If a court finds a deposit was kept in bad faith, the landlord can owe up to twice the deposit amount on top of what was wrongly withheld.

A simple process that keeps you compliant

  1. Collect no more than the allowed amount.
  2. Do a move-in inspection with dated photos and have the tenant sign it.
  3. When notice comes in, offer the pre-move-out inspection in writing.
  4. After move-out, photograph before and after any repairs or cleaning.
  5. Compare against move-in, deduct only what goes beyond normal wear and tear, and send the statement with photos and receipts within 21 days.

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Last checked October 2026. This guide is general information, not legal advice. Laws change and local rules can be stricter, so check the current law or ask a California landlord-tenant attorney before acting.