Free guide · California · Updated for 2026

California security deposit law for landlords (2026)

How much you can charge, what you can deduct, and how and when the deposit has to come back, checked against the current text of Civil Code § 1950.5. Includes a deposit limit calculator and a 21-day deadline calculator.

The short answer

How much
One month's rent, on top of the first month's rent. Some small landlords can take up to two months, but never from a service member.
What counts
Almost any upfront charge besides the first month's rent and the application screening fee: pet deposits, cleaning or move-in fees, last month's rent. None of it can be labeled nonrefundable.
What you can deduct
Unpaid rent, damage beyond normal wear and tear, cleaning back to the move-in level, and, if the lease allows it, missing or damaged furnishings.
Before move-out
Tell the tenant in writing that they can ask for a pre-move-out inspection.
After move-out
Within 21 days: an itemized statement and whatever is left of the deposit. Over $125 in repairs and cleaning, the photos and receipts go with it.
If it goes wrong
Failing the return rules in bad faith forfeits the right to keep any of it. Keeping a deposit in bad faith can cost up to twice its amount in damages.

How much can a landlord charge for a security deposit?

Since July 1, 2024, a California landlord can't ask for or accept more than one month's rent as security, in addition to the first month's rent paid on or before move-in. That change came from AB 12. The old higher limits for furnished units are gone: furnished or not, the cap is the same. Deposits collected or demanded before July 1, 2024 aren't affected.

The law counts as "security" almost any payment charged at the start of a tenancy, whatever it's called. A pet deposit, a cleaning or move-in fee, or last month's rent all count toward the cap. Two things sit outside it:

A lease of six months or longer can also require at least six months' rent paid in advance; the cap doesn't stop that. And no lease can call any part of the deposit "nonrefundable."

The small-landlord exception

A landlord can take up to two months' rent as security, plus the first month's rent, if both of these are true:

Service members: the exception never applies when the prospective tenant is a service member, so the limit is one month's rent. A landlord also can't refuse to rent to a service member because of that lower limit. And if you ask a service member for more than your usual deposit because of their credit or rental history, you have to explain the amount and the reason in writing by the day the lease is signed, put a return date in the lease, and give the extra back within six months if they're current on rent.

Interest: state law doesn't require landlords to pay interest on deposits, but some cities do, including San Francisco and, for rent-stabilized units, Los Angeles. Check your city's rules.

Deposit limit calculator

Is the tenant a service member?
Are you a natural person, or an LLC whose members are all natural persons?
Do you own no more than two rental properties, with four or fewer units for rent between them?

What can a landlord deduct from a security deposit?

Only four things, and only in amounts that are reasonably necessary:

The law then rules out three kinds of charges: anything that was already damaged or defective before the tenancy began, ordinary wear and tear or its effects (including wear built up over several tenancies), and professional carpet or other professional cleaning that isn't reasonably necessary to get back to the move-in condition. Repair and material costs are capped at a reasonable amount to restore the move-in condition, less ordinary wear and tear.

Free: wear and tear vs. damage, with real photos. Where the line falls for walls, cleaning, carpet and repainting, with useful-life and repainting calculators.

Read the guide

The pre-move-out inspection

Before the tenant leaves, California gives them the chance to find out what you plan to deduct and fix it themselves. The steps:

  1. Send the written notice. Within a reasonable time after either side gives notice to end the tenancy, or before the lease term ends, tell the tenant in writing that they can ask for an initial inspection and be there for it. The notice has to include the statute's short paragraph about reclaiming property left behind after move-out.
  2. Schedule it if they ask. The inspection can't be earlier than two weeks before the tenancy ends. Try to agree on a time, then give at least 48 hours' written notice of the date and time. You and the tenant can both sign a written waiver of the 48 hours. Go ahead whether or not the tenant shows up, unless they withdrew the request.
  3. Leave an itemized list. Based on the inspection, give the tenant a written list of the repairs and cleaning you propose to deduct for, along with the text of the law's four allowed deduction purposes. Hand it to the tenant, or leave it inside the unit.
  4. Let the tenant fix things. Until they move out, the tenant can take care of anything on the list to avoid the deduction.

Free: a move-out letter to your tenant. Gives the written notice of the pre-move-out inspection, with the abandoned property paragraph, plus cleaning, key and deposit instructions. Fillable PDF.

Get the letter

Free: a pre-move-out inspection checklist. A room-by-room checklist for the walkthrough, plus the itemized list to leave with the tenant, with the statute text printed on it. Fillable PDF.

Get the checklist
Why the list matters: once you've done the inspection, you generally can't deduct later for repairs or cleaning that weren't on it. The exceptions are damage that happens after the inspection and problems the tenant's belongings kept you from seeing.

If the tenant doesn't ask for an inspection, you've done your part. The inspection rules don't apply to tenancies ended by certain eviction notices (Code of Civil Procedure § 1161, paragraphs 2–4). The law doesn't require photos at this inspection; the photo steps come at move-in, after move-out, and around repairs.

How long does a landlord have to return a security deposit?

21 calendar days after the tenant moves out. By then the tenant must have an itemized statement showing the deposit received and how it was used, and whatever is left over. The statement can't be sent before a notice to end the tenancy has been given, or, for a fixed-term lease, before 60 days ahead of its end.

21-day deadline calculator

What goes with the itemized statement

When you deduct for repairs or cleaning, the statement has to come with proof of the costs:

DeductionWhat to include
Work you or your employee didA reasonable description of the work, the time spent, and the reasonable hourly rate charged.
Work someone else didA copy of their bill, invoice or receipt. If it doesn't show their name, address and phone number, add them to the statement.
Materials and suppliesA copy of the bill, invoice or receipt. For items you buy regularly, a vendor price list or similar document can show the cost.
Any repair or cleaningThe photos the law requires, plus a written explanation of the cost. Photos can go by mail, email, flash drive, or a link to view them online.

The photo rules come from AB 2801: photos at move-in for tenancies starting on or after July 1, 2025, and photos after move-out and after repairs since April 1, 2025. Full details in our AB 2801 guide.

Free: an itemized deposit statement template. A fillable PDF with a place for each deduction, the refund, and the invoices and photos that go with it, plus a worked example.

Get the template

How to return it (new for 2026)

AB 414 changed how the money goes back, starting January 1, 2026:

What happens if a landlord gets it wrong?

In practice, most of that comes down to one question: can you show how the unit looked at move-in and how it looked at move-out? That's the record a deduction stands or falls on.

Free: the California move-in and move-out checklist. Room by room, as a page or a fillable PDF, with the photo steps the law requires.

Get the checklist

Sources

Checked against the statute's text in October 2026. General information, not legal advice. For a specific situation, talk to a California landlord-tenant attorney or your local rent board.