Frequently Asked Questions About Security Deposits and California Law
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security_depositMost Chico residential leases and rental agreements in California require a security deposit. This is a dollar amount, usually one month’s rent, that’s intended to cover damage to the premises beyond normal wear and tear, and to cushion the financial blow if a tenant skips out early on the lease without paying. Here’s a summary of California landlord-tenant laws that cover the use and return of security deposits.

Q: Does California law limit how much a landlord can charge a tenant for a security deposit?

A: Yes. Under California landlord-tenant laws, a landlord may charge a renter the equivalent of two months’ rent for the security deposit if the residence is unfurnished, and three months’ rent if the residence is furnished. California landlords can also add an extra one-half month’s rent if the tenant has a waterbed. Landlords may not charge nonrefundable fees in California.

Q: What about when a renter moves out? What is the deadline in California for returning a security deposit?

A: Under California law, a landlord must return the renter’s security deposit, with an itemized statement of deductions, within 21 days after the renter has surrendered the rental property to the landlord (that is, returned the keys and vacated the property).

Q: Is there additional information that California landlords must provide to renters when it comes to security deposits in California?

A: Yes. In addition to complying with California laws on security deposit limits and how (and when) the deposit must be returned to tenants, landlords in California must provide renters with advance notice before taking any deductions out of the security deposit, such as for the cost of repairs for damage to the property.

Q: Where can I look up California law on security deposits?

A: If you want to go right to the source and look up the California laws on security deposits — or if you’re writing a letter to your landlord or tenant and want to cite the applicable law — the relevant statute(s) can be found at California Civil Code  1950.5 and 1940.5(g). Your city or county might have different landlord-tenant and security deposit laws than those at the state level in California, especially if your rental property is covered by rent control.

Check out our blog on repair costs and security deposits for more information!