California Security Deposits: Know Your Rights

State of Calif ornia CIVIL CODE Section 1950.5 1950.5. (a)   This section applies to security for a rental agreement for residential property that is used as the dwelling of the tenant. (b)   As used in this section, “security” means an y payment, fee, deposit, or char ge, including, b ut not limited to, an y payment, fee, deposit, or char ge, except as pro vided in Section 1950.6, that is imposed at the be ginning of the tenanc y to be used to reimb urse the landlord for costs associated with processing a ne w tenant or that is imposed as an adv ance payment of rent, used or to be used for an y purpose, including, but not limited to, an y of the follo wing: (1)   The compensation of a landlord for a tenant’ s def ault in the payment of rent. (2)   The repair of damages to the premises, e xclusi ve of ordinary wear and tear , caused by the tenant or by a guest or licensee of the tenant. (3)   The cleaning of the premises upon termination of the tenanc y necessary to return the unit to the same le vel of cleanliness it w as in at the inception of the tenanc y. The amendments to this paragraph enacted by the act adding this sentence shall apply only to tenancies for which the tenant’ s right to occup y begins after January 1, 2003. (4)   To remedy future def aults by the tenant in an y oblig ation under the rental agreement to restore, replace, or return personal property or appurtenances, e xclusi ve of ordinary wear and tear , if the security deposit is authorized to be applied thereto by the rental agreement. (c)   (1)   Except as pro vided in paragraph (2), (3), or (5), a landlord shall not demand or recei ve security , however denominated, in an amount or v alue in e xcess of an amount equal to one month’ s rent, in addition to an y rent for the first month paid on or before initial occupanc y. (2)   This subdi vision does not prohibit an adv ance payment of not less than six months’ rent if the term of the lease is six months or longer . (3)   This subdi vision does not preclude a landlord and a tenant from entering into a mutual agreement for the landlord, at the request of the tenant and for a specified fee or char ge, to mak e structural, decorati ve, furnishing, or other similar alterations, if the alterations are other than cleaning or repairing for which the landlord may char ge the pre vious tenant as pro vided by subdi vision (e). (4)   On or after April 1, 2025, if a landlord or its agent char ges a service member who rents residential property in which the service member will reside a higher than standard or adv ertised security pursuant to paragraph (1) due to the credit history , credit score, housing history , or other f actor related to the tenant, the landlord shall provide the tenant with a written statement, on or before the date the lease is signed, of the amount of the higher security and an e xplanation wh y the higher security amount is being char ged. The additional amount of security shall be returned to the tenant after no more than six months of residenc y if the tenant is not in arrears for an y rent due during that period. The date for return of the additional amount of security shall be included in the lease agreement. F or purposes of this paragraph, “service member” has the same meaning as in Section 400 of the Military and Veterans Code. (5)   (A)   Notwithstanding paragraph (1), a landlord shall not demand or recei ve security , however denominated, in an amount or v alue in e xcess of an amount equal to tw o months’ rent, in addition to an y rent for the first month paid on or before initial occupanc y if the landlord meets both of the follo wing requirements: (i)   The landlord is a natural person or a limited liability compan y in which all members are natural persons. (ii)   The landlord o wns no more than tw o residential rental properties that collecti vely include no more than four dwelling units of fered for rent. (B)   Subparagraph (A) shall not apply if the prospecti ve tenant is a service member . A landlord shall not refuse to enter into a rental agreement for residential property with a prospecti ve tenant who is a service member because this subparagraph prohibits the landlord from demanding or recei ving a greater amount of security than that which is established in paragraph (1). F or purposes of this subparagraph, “service member” has the same meaning as in Section 400 of the Military and Veterans Code. (C)   For purposes of this paragraph: (i)   “Natural person” includes an y natural person who is a settlor or beneficiary of a family trust. (ii)   “Family trust” means a re vocable li ving trust or irre vocable trust in which the settlors and beneficiaries of the trust are persons who are related to each other as sibling, spouse, domestic partner , child, parent, grandparent, or grandchild. (6)   This subdi vision shall not apply to a security collected or demanded by the landlord before July 1, 2024. (d)   Any security shall be held by the landlord for the tenant who is party to the lease or agreement. The claim of a tenant to the security shall be prior to the claim of any creditor of the landlord. (e)   (1)   Subject to paragraph (2), the landlord may claim of the security only those amounts as are reasonably necessary for the purposes specified in subdi vision (b). (2)   (A)   The landlord shall not assert a claim ag ainst the tenant or the security for damages to the premises or an y defecti ve conditions that pree xisted the tenanc y, for ordinary wear and tear or the ef fects thereof, whether the wear and tear pree xisted the tenanc y or occurred during the tenanc y, or for the cumulati ve effects of ordinary wear and tear occurring during an y one or more tenancies. (B)   Claims ag ainst the tenant or the security for materials or supplies and for w ork performed by a contractor , the landlord, or the landlord’ s emplo yee shall be limited to a reasonable amount necessary to restore the premises back to the condition it w as in at the inception of the tenanc y, exclusi ve of ordinary wear and tear . (C)   The landlord shall not require a tenant to pay for , or assert a claim ag ainst the tenant or the security for , professional carpet cleaning or other professional cleaning services, unless reasonably necessary to return the premises to the condition it w as in at the inception of tenanc y, exclusi ve of ordinary wear and tear . (f)   (1)   Within a reasonable time after notification of either party’ s intention to terminate the tenanc y, or before the end of the lease term, the landlord shall notify the tenant in writing of the tenant’ s option to request an initial inspection and of the tenant’ s right to be present at the inspection. At a reasonable time, b ut no earlier than two weeks before the termination or the end of lease date, the landlord, or an agent of the landlord, shall, upon the request of the tenant, mak e an initial inspection of the premises prior to an y final inspection the landlord mak es after the tenant has v acated the premises. The purpose of the initial inspection shall be to allo w the tenant an opportunity to remedy identified deficiencies, in a manner consistent with the rights and oblig ations of the parties under the rental agreement, in order to a void deductions from the security . If a tenant chooses not to request an initial inspection, the duties of the landlord under this subdi vision are dischar ged. If an inspection is requested, the parties shall attempt to schedule the inspection at a mutually acceptable date and time. The landlord shall gi ve at least 48 hours’ prior written notice of the date and time of the inspection if either a mutual time is agreed upon, or if a mutually agreed time cannot be scheduled b ut the tenant still wishes an inspection. The tenant and landlord may agree to for go the 48-hour prior written notice by both signing a written waiver. The landlord shall proceed with the inspection whether the tenant is present or not, unless the tenant pre viously withdre w their request for the inspection. Written notice by the landlord shall contain, in substantially the same form, the follo wing: “State la w permits former tenants to reclaim abandoned personal property left at the former address of the tenant, subject to certain conditions. You may or may not be able to reclaim property without incurring additional costs, depending on the cost of storing the property and the length of time before it is reclaimed. In general, these costs will be lo wer the sooner you contact your former landlord after being notified that property belonging to you w as left behind after you mo ved out. ” (2)   Based on the inspection, the landlord shall gi ve the tenant an itemized statement specifying repairs or cleanings that are proposed to be the basis of an y deductions from the security the landlord intends to mak e pursuant to paragraphs (1) to (4), inclusi ve, of subdi vision (b). This statement shall also include the te xts of paragraphs (1) to (4), inclusi ve, of subdi vision (b). The statement shall be gi ven to the tenant, if the tenant is present for the inspection, or shall be left inside the premises. (3)   The tenant shall ha ve the opportunity during the period follo wing the initial inspection until termination of the tenanc y to remedy identified deficiencies, in a manner consistent with the rights and oblig ations of the parties under the rental agreement, in order to a void deductions from the security . (4)   Subject to paragraphs (5) and (6), if an initial inspection is conducted pursuant to this subdi vision and, at the time of inspection, the premises do not contain tenant possessions that pre vent the landlord from identifying repairs or cleanings due to the presence of those possessions, the landlord shall not use the security for deductions for repairs or cleanings that are not identified in the itemized statement described in paragraph (2). (5)   Nothing in this subdi vision shall pre vent a landlord from using the security for deductions itemized in the statement pro vided for in paragraph (2) that were not cured by the tenant so long as the deductions are for damages authorized by this section. (6)   Nothing in this subdi vision shall pre vent a landlord from using the security for any purpose specified in paragraphs (1) to (4), inclusi ve, of subdi vision (b) that occurs between completion of the initial inspection when possession of the unit is returned to the landlord or that w as not identified during the initial inspection due to the presence of a tenant’ s possessions. (7)   The requirements of this subdi vision do not apply when the tenanc y is terminated pursuant to subdi vision (2), (3), or (4) of Section 1161 of the Code of Ci vil Procedure. (g)   (1)   For tenancies that be gin on or after July 1, 2025, the landlord shall tak e photographs of the unit immediately before, or at the inception of, the tenanc y. (2)   Beginning April 1, 2025, the landlord shall tak e photographs of the unit within a reasonable time after the possession of the unit is returned to the landlord, b ut prior to an y repairs or cleanings for which the landlord will mak e a deduction from or claim against the security deposit pursuant to this section, and shall also tak e photographs of the unit within a reasonable time after such repairs or cleanings are completed. (h)   (1)   No later than 21 calendar days after the tenant has v acated the premises, but not earlier than the time that either the landlord or the tenant pro vides a notice to terminate the tenanc y under Section 1946 or 1946.1, Section 1161 of the Code of Civil Procedure, or not earlier than 60 calendar days prior to the e xpiration of a fixed-term lease, the landlord shall furnish the tenant, a cop y of an itemized statement indicating the basis for , and the amount of, an y security recei ved and the disposition of the security , and shall return an y remaining portion of the security to the tenant as follows: (A)   (i)   Subject to subparagraph (C), and e xcept as pro vided by clause (ii), the landlord shall return the remainder of the security by personal deli very or by a check made payable to the tenant and mailed by first-class mail, postage prepaid. (ii)   (I)   If the landlord recei ved the security or rental payments from the tenant electronically , the landlord shall return the remainder of the security electronically to a bank account or other financial institution designated by the tenant in writing, or by an y electronic or virtual method a vailable to the landlord if agreed to in writing by the tenant. Alternati vely, the landlord and tenant may , by written agreement, designate another method of return, including, b ut not limited to, by personal deli very or by a check made payable to the tenant and mailed by first-class mail, postage prepaid, to an address pro vided by the tenant. Upon the termination of a landlord’ s interest in the premises and the transfer of the security to the landlord’ s successor in interest as pro vided in subdi vision (i), the landlord’ s successor in interest shall return the remainder of the security electronically to a bank account or other financial institution designated by the tenant in writing or by an y electronic or virtual method available to the landlord’ s successor in interest if agreed to in writing by the tenant only if the landlord’ s successor in interest recei ved rental payments electronically from the tenant. (II)   Pursuant to subclause (I), if the landlord recei ved the security or rental payments from the tenant electronically or the landlord’ s successor in interest recei ved rental payments from the tenant electronically , the landlord or the landlord’ s successor in interest shall, within a reasonable time after notification of either party’ s intention to terminate the tenanc y, or before the end of the lease term, notify the tenant in writing of the tenant’ s right to recei ve the security electronically to a bank account or other financial institution designated by the tenant, or by an y electronic or virtual method available to the landlord or the landlord’ s successor in interest, if agreed to in writing by the tenant, pursuant to subclause (I). The requirements of this subclause do not apply when the landlord or the landlord’ s successor in interest and tenant ha ve previously entered into a written agreement designating another method of return of the security pursuant to subclause (I) or when the tenanc y is terminated pursuant to subdi vision (2), (3), or (4) of Section 1161 of the Code of Ci vil Procedure. (B)   (i)   Subject to subparagraph (C), and e xcept as pro vided by clause (ii), the landlord shall furnish the itemized statement by personal deli very or first-class mail, postage prepaid. (ii)   Upon mutual agreement between the landlord and tenant entered into at the commencement of the tenanc y or at an y time during or after the tenanc y, the itemized statement may be furnished by either of the follo wing: (I)   Emailed to an account pro vided by the tenant. (II)   Mailed to an address pro vided by the tenant by first-class mail, postage prepaid. (C)   (i)   Except as pro vided in clause (iii) and unless the landlord and all adult tenants residing in the unit enter into a written mutual agreement pursuant to clause (ii), if multiple adult tenants reside in the unit, the landlord shall return the remainder of the security by a check made payable to all adult tenants on the rental or lease agreement at the time the tenanc y terminates and furnish the itemized statement by personal deli very or first-class mail, postage prepaid, to an y one of the adult tenants chosen by the landlord. (ii)   If multiple adult tenants reside in the unit, the landlord may enter into a mutual written agreement between the landlord and all adult tenants, at the commencement of the tenanc y or at an y time during or after the tenanc y, that specifies both of the following: (I)   How an y remaining portion of the security will be returned, including whether it will be returned to a specific adult tenant or di vided among multiple tenants, with the allocation percentages. If an y remaining portion of the security is to be returned to multiple adult tenants, the landlord may return the security by either a check by first-class mail, postage prepaid, or an electronic deposit to a bank account or other financial institution designated by each adult tenant, as specified in the written agreement. (II)   For each adult tenant, whether the landlord will furnish the itemized statement by email or first-class mail, postage prepaid, along with a forw arding address or email account. (iii)   If multiple adult tenants reside in a unit and a tenant terminates the lease pursuant to Section 1946.7 and no written mutual agreement w as entered into by the landlord and all adult tenants pursuant to clause (ii), and the tenant who terminated the lease pursuant to Section 1946.7 requests that the security be disb ursed in a manner other than by check made payable to all adult tenants, the landlord may return the security in a manner other than by check made payable to all adult tenants. (2)   The landlord shall also include, along with and at the same time the itemized statement is sent, copies of documents sho wing char ges incurred and deducted by the landlord to repair or clean the premises, as follo ws: (A)   If the landlord or landlord’ s emplo yee did the w ork, the itemized statement shall reasonably describe the w ork performed. The itemized statement shall include the time spent and the reasonable hourly rate char ged. (B)   If the landlord or landlord’ s emplo yee did not do the w ork, the landlord shall provide the tenant a cop y of the bill, in voice, or receipt supplied by the person or entity performing the w ork. The itemized statement shall pro vide the tenant with the name, address, and telephone number of the person or entity , if the bill, in voice, or receipt does not include that information. (C)   If a deduction is made for materials or supplies, the landlord shall pro vide a copy of the bill, in voice, or receipt. If a particular material or supply item is purchased by the landlord on an ongoing basis, the landlord may document the cost of the item by pro viding a cop y of a bill, in voice, receipt, v endor price list, or other v endor document that reasonably documents the cost of the item used in the repair or cleaning of the unit. (D)   If a deduction is made for repairs or cleanings allo wed by this section, the landlord shall pro vide photographs tak en pursuant to subdi vision (g), along with a written e xplanation of the cost of the allo wable repairs or cleanings, as described in subparagraphs (A) to (C), inclusi ve. The landlord may pro vide such photographs to the tenant by mail, email, computer flash dri ve, or by pro viding a link where the tenant may vie w the photographs online. (3)   If a repair to be done by the landlord or the landlord’ s emplo yee cannot reasonably be completed within 21 calendar days after the tenant has v acated the premises, or if the documents from a person or entity pro viding services, materials, or supplies are not in the landlord’ s possession within 21 calendar days after the tenant has v acated the premises, the landlord may deduct the amount of a good f aith estimate of the char ges that will be incurred and pro vide that estimate with the itemized statement. If the reason for the estimate is because the documents from a person or entity pro viding services, materials, or supplies are not in the landlord’ s possession, the itemized statement shall include the name, address, and telephone number of the person or entity . Within 14 calendar days of completing the repair or recei ving the documentation, the landlord shall complete the requirements in paragraphs (1) and (2) in the manner specified. (4)   The landlord need not comply with paragraph (2) or (3) if either of the follo wing applies: (A)   The deductions for repairs and cleaning together do not e xceed one hundred twenty-fiv e dollars ($125). (B)   The tenant w aived the rights specified in paragraphs (2) and (3). The w aiver shall only be ef fective if it is signed by the tenant at the same time or after a notice to terminate a tenanc y under Section 1946 or 1946.1 has been gi ven, a notice under Section 1161 of the Code of Ci vil Procedure has been gi ven, or no earlier than 60 calendar days prior to the e xpiration of a fix ed-term lease. The w aiver shall substantially include the te xt of paragraph (2). (5)   Notwithstanding paragraph (4), the landlord shall comply with paragraphs (2) and (3) when a tenant mak es a request for documentation within 14 calendar days after recei ving the itemized statement specified in paragraph (1). The landlord shall comply within 14 calendar days after recei ving the request from the tenant. (6)   Any mailings to the tenant pursuant to this subdi vision shall be sent to the address pro vided by the tenant. If the tenant does not pro vide an address, mailings pursuant to this subdi vision shall be sent to the unit that has been v acated. (7)   The landlord shall not be entitled to claim an y amount of the security if the landlord, in bad f aith, f ails to comply with this subdi vision. (i)   Upon termination of the landlord’ s interest in the premises, whether by sale, assignment, death, appointment of recei ver, or otherwise, the landlord or the landlord’ s agent shall, within a reasonable time, do one of the follo wing acts, either of which shall relie ve the landlord of further liability with respect to the security held: (1)   Transfer the portion of the security remaining after an y lawful deductions are made under subdi vision (e) to the landlord’ s successor in interest. The landlord shall thereafter notify the tenant by personal deli very or by first-class mail, postage prepaid, of the transfer , of an y claims made ag ainst the security , of the amount of the security deposited, and of the names of the successors in interest, their addresses, and their telephone numbers. If the notice to the tenant is made by personal deli very, the tenant shall ackno wledge receipt of the notice and sign their name on the landlord’ s cop y of the notice. (2)   Return the portion of the security remaining after an y lawful deductions are made under subdi vision (e) to the tenant, together with an accounting as pro vided in subdi vision (h). (j)  Prior to the v oluntary transfer of a landlord’ s interest in the premises, the landlord shall deli ver to the landlord’ s successor in interest a written statement indicating the following: (1)   The security remaining after an y lawful deductions are made. (2)   An itemization of an y lawful deductions from an y security recei ved. (3)   Their election under paragraph (1) or (2) of subdi vision (i). This subdi vision does not af fect the v alidity of title to the real property transferred in violation of this subdi vision. (k)   (1)   In the e vent of noncompliance with subdi vision (i), the landlord’ s successors in interest shall be jointly and se verally liable with the landlord for repayment of the security , or that portion thereof to which the tenant is entitled, when and as pro vided in subdi visions (e) and (h). A successor in interest of a landlord may not require the tenant to post an y security to replace that amount not transferred to the tenant or successors in interest as pro vided in subdi vision (i), unless and until the successor in interest first mak es restitution of the initial security as pro vided in paragraph (2) of subdi vision (i) or pro vides the tenant with an accounting as pro vided in subdi vision (h). (2)   This subdi vision does not preclude a successor in interest from reco vering from the tenant compensatory damages that are in e xcess of the security recei ved from the landlord pre viously paid by the tenant to the landlord. (3)   Notwithstanding this subdi vision, if, upon inquiry and reasonable in vestigation, a landlord’ s successor in interest has a good f aith belief that the la wfully remaining security deposit is transferred to the successor in interest or returned to the tenant pursuant to subdi vision (i), the successor in interest is not liable for damages as provided in subdi vision (m), or an y security not transferred pursuant to subdi vision (i). (l)  Upon receipt of an y portion of the security under paragraph (1) of subdi vision (i), the landlord’ s successors in interest shall ha ve all of the rights and oblig ations of a landlord holding the security with respect to the security . (m)   The bad f aith claim or retention by a landlord or the landlord’ s successors in interest of the security or an y portion thereof in violation of this section, or the bad faith demand of replacement of security in violation of subdi vision (k), may subject the landlord or the landlord’ s successors in interest to statutory damages of up to twice the amount of the security , in addition to actual damages. The court may a ward damages for bad f aith whene ver the f acts w arrant that a ward, re gardless of whether the injured party has specifically requested relief. In an action under this section, the landlord or the landlord’ s successors in interest shall ha ve the b urden of proof as to the reasonableness of the amounts claimed or the authority pursuant to this section to demand additional security deposits. (n)   A lease or rental agreement shall not contain a pro vision characterizing an y security as “nonrefundable. ” (o)   An action under this section may be maintained in small claims court if the damages claimed, whether actual, statutory , or both, are within the jurisdictional amount allo wed by Section 116.220 or 116.221 of the Code of Ci vil Procedure. (p)   Proof of the e xistence of and the amount of a security deposit may be established by an y credible e vidence, including, b ut not limited to, a canceled check, a receipt, a lease indicating the requirement of a deposit as well as the amount, prior consistent statements or actions of the landlord or tenant, or a statement under penalty of perjury that satisfies the credibility requirements set forth in Section 780 of the Evidence Code. (q)   The amendments to this section made during the 1985 portion of the 1985–86 Regular Session of the Le gislature that are set forth in subdi vision (e) are declaratory of existing la w. (r)   The amendments to this section made during the 2003 portion of the 2003–04 Regular Session of the Le gislature that are set forth in paragraph (1) of subdi vision (f) are declaratory of e xisting la w. (Amended by Stats. 2025, Ch. 340, Sec. 1. (AB 414) Ef fective January 1, 2026.)