California Rules on Tenant Security Deposits

In the U.S., it is typically a general approach that tenants provide security deposits in rented apartment. Basically, this security deposit provide protection to Landlords against unpaid rent, repairs for damages, replacement of furniture and other items lost including keys. This deposit is mostly equivalent to a two month rental of the apartment.

The state of California on the other specifically allows the landlord to use a tenant’s security deposit for four major purposes;

1. Charge unpaid rent
2. Charge the cost for cleaning the rental unit, but only to make the unit as clean as it was when the tenant first moved in
3. Charge the repair of damages caused by the tenant or the tenant’s guests, but other than which is normal wear and tear
4. And other specified conditions on the rental agreement such as for the cost of restoring or replacing furnishing, furniture, appliances, and other items of personal property including keys, except when damage is caused by normal wear and tear.

The California law further rules that the landlord has 21 calendar days or less after the tenant moves out to comply the following;

• Security deposits must be fully refunded to the tenant within a specified period
• Send by mail or personally deliver an itemized statement to the tenant, the lists of deductions from the security deposit with its corresponding reasons and amount, plus the refund of any remaining amounts after deduction.

The Key Rights of a Tenant

• The state of California rules that security deposits cannot exceed two months’ rent for unfurnished unit. Furnished apartments are however determined by the landlord and included in the lease contract.
• A tenant can demand pre-move out inspection and inventory from the landlord
• The state of California only gives the landlord 21 days to refund the security deposit to the tenant starting from the date the tenant vacated the unit.
• Only legitimate deductions must be charge by the landlord and properly documented in writing.
• The landlord cannot withhold or charge damages for ordinary wear and tear.

Tips for tenants on how to protect your security deposit
• Maintain and safe keep a list of inventory on the unit’s condition when you move in. Prepare a checklist and take photos at the very start before moving in.
• Always request a pre-move out inspection by the landlord and give yourself an opportunity to fix things a little before moving out.
• Inform your landlord by written notice specifying when you are vacating the apartment. This will avoid deduction due to unpaid rent from your security deposit.

Cost of Security Deposits

As per Civil Code 1950.5 (c), a security deposit cannot exceed two months’ rent for unfurnished units and three months’ rent for furnished units.
About Interest on Security Deposits

Generally, the state of California does not require landlords to pay interest on security deposits. But there are some California locations such as Hayward, Berkeley, San Francisco, Los Angeles, and Santa Cruz where tenants are entitled to interest under their local laws.

When do tenants received back their security deposit

As per Civil Code 1950.5 (g) (1), security deposits must be returned and withholdings properly documented within 21 days starting on the tenant’s departure date.

As per Civil Code 1950.5 (b)

Charges from security deposits may be made for the costs to repair damages caused by tenant or tenants’ guests, unpaid rent, cost of cleaning the unit to revert back to the level of cleanliness of the unit at the inception of tenancy and such other legitimate charges on limited bases. Landlords are not allowed to deduct the cost for damages due to ordinary wear and tear from security deposits.