26 Sep California Security Deposit Rules for Landlords (2026)
Last updated September 2026. California’s security deposit rules changed substantially; this article reflects current law.
The security deposit is one of the most regulated parts of a California lease. It is also one of the most common sources of disputes between tenants and landlords. Recent laws changed how much a landlord can collect, how the landlord must document the unit’s condition, and how the deposit goes back to the tenant.
How much can be collected
Since July 1, 2024 (AB 12), a landlord may collect a security deposit of no more than one month’s rent, whether the unit is furnished or unfurnished. Previously the limits were two months for unfurnished and three months for furnished units.
However, there is one exception for small landlords. It applies to an owner who is a natural person, an LLC whose members are all natural persons, or a family trust. The owner must also own no more than two residential properties with no more than four units in total. Such an owner may still collect up to two months’ rent. Still, the exception does not apply if the tenant is a service member. In that case, the landlord can charge no more than one month’s rent.
The deposit limit covers any payment the landlord collects beyond first month’s rent, whatever its name. For example, a “move-in fee,” “cleaning fee” or “last month’s rent” all count toward the cap.
Photos are now required
Under AB 2801, landlords must photograph the unit at three points:
- At move-in, for tenancies beginning on or after July 1, 2025, to document the unit’s condition before the tenant takes possession.
- At move-out, after the tenant leaves and before any repairs or cleaning the landlord will deduct for (required since April 1, 2025).
- Before and after repairs that the landlord will charge against the deposit.
The landlord must then give the photos to the tenant with the itemized statement. Without them, deductions are much harder to defend.
What can be deducted
A landlord may deduct only what is reasonably necessary for:
- unpaid rent;
- repair of damage beyond ordinary wear and tear, caused by the tenant or their guests;
- cleaning needed to return the unit to the level of cleanliness it had at move-in; and
- restoring or replacing personal property or furnishings, if the lease allows it, excluding ordinary wear and tear.
However, worn carpet, faded paint and minor scuffs after a long tenancy are ordinary wear and tear, not damage.
The 21-day deadline
Within 21 days after the tenant moves out, the landlord must return the deposit in full, or send an itemized statement of deductions with the balance. When deductions for repairs and cleaning total more than $125, the landlord must also include copies of receipts or invoices. If the work is not yet done, the landlord must instead send a good-faith estimate, followed by receipts within 14 days of completion.
In addition, a new rule took effect on January 1, 2026 (AB 414). If the tenant paid the deposit or rent electronically, the landlord generally must also return the refund electronically, unless the landlord and tenant agree otherwise in writing.
Finally, a court can order a landlord who keeps a deposit in bad faith to pay the tenant up to twice the amount of the deposit. That penalty comes in addition to the amount wrongfully withheld.
Best practices we follow
- Collect no more than the legal maximum, and document the amount and form of payment in the lease.
- Take dated, room-by-room photos at move-in and share them with the tenant.
- Offer the pre-move-out inspection the law requires landlords to offer, so tenants can fix problems before they leave.
- Photograph the unit at move-out before any work starts, keep invoices, and send the statement well before day 21.
Handled this way, deposit disputes become rare. If you own rental property in Los Angeles and want move-ins and move-outs handled correctly, see our property management services.
This article is general information, not legal advice. Confirm current requirements with an attorney before acting.
Sources: California Apartment Association: AB 12 · AB 414 (2025) · California Civil Code § 1950.5