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
| Landlord | Maximum 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 total | Up to two months' rent |
| Small landlord renting to a service member | One 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
- Unpaid rent.
- Cleaning needed to return the unit to the same level of cleanliness it had at move-in.
- Repair of damage beyond ordinary wear and tear caused by the tenant or their guests.
- Restoring or replacing personal property or furniture, if the lease allows it, beyond ordinary wear and tear.
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.
Run inspections in EC Rental
Room-by-room move-in and move-out inspections with dated photos, side-by-side comparison and a printable report.
See inspections →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
- From April 1, 2025: take photos of the unit within a reasonable time after the tenant moves out, before you do any repairs or cleaning, and again after the repairs or cleaning are done.
- For tenancies starting on or after July 1, 2025: take photos at or just before the start of the tenancy.
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
- Collect no more than the allowed amount.
- Do a move-in inspection with dated photos and have the tenant sign it.
- When notice comes in, offer the pre-move-out inspection in writing.
- After move-out, photograph before and after any repairs or cleaning.
- 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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Start a free Tello Inspect →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.