California Security Deposit Law

Maximum deposit

Most landlords may collect no more than one month's rent as a security deposit (all deposits and fees count), while small individual landlords with no more than two properties and four units may collect up to two months' rent unless the tenant is a service member (Cal. Civ. Code § 1950.5(c)). (Cal. Civ. Code § 1950.5(b), (c))

One month's rent, regardless of whether the unit is furnished

Return deadline

Landlords must return the deposit, with an itemized statement of any deductions, no later than 21 calendar days after the tenant vacates (Cal. Civ. Code § 1950.5(h)(1)). (Cal. Civ. Code § 1950.5(h)(1), (h)(3))

Itemized statement of deductions

Landlords must always send an itemized statement of deductions, and must attach copies of invoices or receipts plus the required photographs for repair or cleaning deductions unless those deductions total $125 or less or the tenant signed a valid waiver (Cal. Civ. Code § 1950.5(g), (h)(1)–(h)(4)). (Cal. Civ. Code § 1950.5(g), (h)(1)–(h)(5))

Interest on the deposit

California state law does not require landlords to pay interest on security deposits, but several cities (for example San Francisco, Berkeley and Santa Monica) do (Cal. Civ. Code § 1950.5 is silent on interest). (Cal. Civ. Code § 1950.5 (silent on interest))

Penalty for wrongful withholding

A landlord who retains a deposit in bad faith may owe the tenant up to twice the deposit in statutory damages plus actual damages, and bears the burden of proving deductions were reasonable (Cal. Civ. Code § 1950.5(h)(7), (m)). (Cal. Civ. Code § 1950.5(h)(7), (m))

Where the deposit is held

California does not make landlords park deposits in a separate or interest-bearing account; the statute only says the landlord holds the money for the tenant and the tenant's claim outranks the landlord's creditors (Cal. Civ. Code § 1950.5(d)). (Cal. Civ. Code § 1950.5(d))

Receipt or written notice of the deposit

No California statute requires a written deposit receipt or a notice of where the money is kept; § 1950.5(p) lets a tenant prove the deposit with any credible evidence instead (Cal. Civ. Code § 1950.5(p)). (Cal. Civ. Code § 1950.5(p))

Move-in condition checklist

For any tenancy that starts on or after July 1, 2025, the landlord must photograph the unit just before or at move-in, and must photograph it again after move-out before and after any repairs or cleaning it will charge to the deposit (Cal. Civ. Code § 1950.5(g)). (Cal. Civ. Code § 1950.5(g), (h)(2)(D))

Move-out and post-repair photos have been required since April 1, 2025, and must accompany the itemized statement when repair or cleaning is deducted; separately, on request the landlord must do a pre-move-out initial inspection within the last two weeks with 48 hours' written notice (§ 1950.5(f)).

Pet deposits

A pet deposit in California is just more 'security' and counts toward the one-month (or two-month small-landlord) limit, because the cap covers any payment, fee, deposit or charge however labeled (Cal. Civ. Code § 1950.5(b), (c)). (Cal. Civ. Code § 1950.5(b), (c))

There is no separate allowance for pet deposits; the combined total of rent-in-advance (other than first month), cleaning, key and pet charges must stay within the cap.

Nonrefundable fees

California leases may not call any part of the security nonrefundable, and move-in charges such as cleaning, key or processing fees are treated as refundable security (Cal. Civ. Code § 1950.5(b), (n)). (Cal. Civ. Code § 1950.5(b), (n))

Only the screening/application fee governed by § 1950.6 is carved out of the definition of security; anything else collected at the start of the tenancy must be accounted for and returned less lawful deductions.

Small-landlord exemptions

Natural-person landlords (or all-individual LLCs) who own no more than two rental properties with four or fewer units in total may still take up to two months' rent, unless the applicant is a service member (Cal. Civ. Code § 1950.5(c)(5)). (Cal. Civ. Code § 1950.5(c)(5))

Family-trust settlors and beneficiaries count as natural persons; refusing to rent to a service member to avoid the one-month limit is prohibited, and all other deposit rules (photos, 21-day return) still apply.

Deposit alternatives and installments

California has no statute governing surety bonds, deposit insurance or installment plans in place of a deposit; § 1950.5 only caps and regulates the security itself (Cal. Civ. Code § 1950.5). (Cal. Civ. Code § 1950.5)