California security deposit and move-in inspection rules

How much can the deposit be?

A landlord may not take a security deposit of more than one month's rent, in addition to the first month's rent. A small landlord (a natural person, or an LLC whose members are all natural persons, owning no more than two rental properties with no more than four units in total) may take up to two months' rent, but not from a service member (§ 1950.5(c)(5)). The cap does not apply to a deposit collected before July 1, 2024 (§ 1950.5(c)(6)).

“a landlord shall not demand or receive security, however denominated, in an amount or value in excess of an amount equal to one month’s rent, in addition to any rent for the first month paid on or before initial occupancy.”

“a landlord shall not demand or receive security, however denominated, in an amount or value in excess of an amount equal to two months’ rent, in addition to any rent for the first month paid on or before initial occupancy if the landlord meets both of the following requirements:”

“This subdivision shall not apply to a security collected or demanded by the landlord before July 1, 2024.”

Move-in inspection and photos

For tenancies that begin on or after July 1, 2025, the landlord must photograph the unit immediately before, or at the start of, the tenancy. From April 1, 2025, the landlord must also photograph the unit after the tenant returns it, before any repairs or cleaning that will be deducted, and again after that work is done (§ 1950.5(g)(2)). § 1950.5 does not require a written move-in checklist or condition report.

“For tenancies that begin on or after July 1, 2025, the landlord shall take photographs of the unit immediately before, or at the inception of, the tenancy.”

“Beginning April 1, 2025, the landlord shall take photographs of the unit within a reasonable time after the possession of the unit is returned to the landlord, but prior to any repairs or cleanings for which the landlord will make a deduction from or claim against the security deposit”

Inspection before move-out

Within a reasonable time after either side gives notice to end the tenancy, the landlord must tell the tenant in writing that they may request an initial inspection and be present for it. If the tenant asks, the inspection is held no earlier than two weeks before move-out, with at least 48 hours' written notice unless both sign a waiver (§ 1950.5(f)(1)). The landlord then gives an itemized list of proposed deductions, and the tenant may fix those items to avoid them (§ 1950.5(f)(2)-(3)). This does not apply to terminations under Code of Civil Procedure § 1161(2), (3) or (4) (§ 1950.5(f)(7)).

“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.”

“The landlord shall give at least 48 hours’ prior written notice of the date and time of the inspection”

“Based on the inspection, the landlord shall give the tenant an itemized statement specifying repairs or cleanings that are proposed to be the basis of any deductions from the security”

When the deposit must be returned

Within 21 calendar days after the tenant moves out, the landlord must send an itemized statement of the deposit and return whatever is left.

“No later than 21 calendar days after the tenant has vacated the premises, [...] the landlord shall furnish the tenant, a copy of an itemized statement indicating the basis for, and the amount of, any security received and the disposition of the security, and shall return any remaining portion of the security to the tenant”

What the itemized statement must include

With the statement the landlord must include proof of repair and cleaning charges: for their own or an employee's work, a description with time spent and hourly rate; for outside work or materials, a copy of the bill, invoice or receipt; and the photos required by subdivision (g) (§ 1950.5(h)(2)). If work can't be finished or bills aren't in hand within 21 days, the landlord may deduct a good-faith estimate and must send the final documents within 14 days of completing the work or receiving them (§ 1950.5(h)(3)). These documents are not required when repair and cleaning deductions total $125 or less, or the tenant signed a valid waiver (§ 1950.5(h)(4)). Even then, the tenant can ask for them within 14 days of receiving the statement (§ 1950.5(h)(5)).

“If the landlord or landlord’s employee did not do the work, the landlord shall provide the tenant a copy of the bill, invoice, or receipt supplied by the person or entity performing the work.”

“If the landlord or landlord’s employee did the work, the itemized statement shall reasonably describe the work performed. The itemized statement shall include the time spent and the reasonable hourly rate charged.”

“The deductions for repairs and cleaning together do not exceed one hundred twenty-five dollars ($125).”

“If a deduction is made for repairs or cleanings allowed by this section, the landlord shall provide photographs taken pursuant to subdivision (g), along with a written explanation of the cost of the allowable repairs or cleanings”

What can and cannot be deducted

The landlord may keep only amounts reasonably necessary for four things: unpaid rent; repairing damage beyond ordinary wear and tear caused by the tenant or their guests; cleaning back to the move-in level of cleanliness; and replacing personal property, if the lease allows (§ 1950.5(b)(1)-(4), (e)(1)). The landlord may not charge for damage that existed before the tenancy or for ordinary wear and tear. Professional carpet cleaning can be charged only when reasonably necessary to restore the move-in condition (§ 1950.5(e)(2)(C)). A lease may not call any deposit "nonrefundable" (§ 1950.5(n)).

“The landlord shall not assert a claim against the tenant or the security for damages to the premises or any defective conditions that preexisted the tenancy, for ordinary wear and tear or the effects thereof, whether the wear and tear preexisted the tenancy or occurred during the tenancy”

“the landlord may claim of the security only those amounts as are reasonably necessary for the purposes specified in subdivision (b).”

“A lease or rental agreement shall not contain a provision characterizing any security as “nonrefundable.””

How the deposit is returned

The default is personal delivery or a check sent by first-class mail. If the tenant paid the deposit or rent electronically, the landlord must return the deposit electronically to an account the tenant names in writing, unless they agreed in writing on another method (§ 1950.5(h)(1)(A)(ii)). The itemized statement goes by personal delivery or first-class mail, or by email if both agree (§ 1950.5(h)(1)(B)). With several adult tenants, the default is one check payable to all of them (§ 1950.5(h)(1)(C)). Mail goes to the address the tenant gives, or else to the vacated unit (§ 1950.5(h)(6)).

“the landlord shall return the remainder of the security by personal delivery or by a check made payable to the tenant and mailed by first-class mail, postage prepaid.”

“If the landlord received 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”

“Any mailings to the tenant pursuant to this subdivision shall be sent to the address provided by the tenant. If the tenant does not provide an address, mailings pursuant to this subdivision shall be sent to the unit that has been vacated.”

Interest on the deposit

No state statute requires interest. The full text of Civil Code § 1950.5 contains no interest requirement. Local ordinances may require interest.

Penalties for keeping a deposit wrongly

A landlord who keeps a deposit in bad faith may owe statutory damages of up to twice the deposit, plus actual damages, and the landlord bears the burden of proving the amounts claimed were reasonable (§ 1950.5(m)). A landlord who fails in bad faith to comply with the return and statement rules may not keep any of the deposit (§ 1950.5(h)(7)). A claim may be filed in small claims court within its dollar limits (§ 1950.5(o)).

“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 landlord shall not be entitled to claim any amount of the security if the landlord, in bad faith, fails to comply with this subdivision.”

If the property is sold

When the property is sold or changes hands, the landlord must either transfer the remaining deposit to the new owner and notify the tenant, or return it to the tenant with an accounting. Otherwise the new owner is jointly liable for it (§ 1950.5(i), (k)).

“Upon termination of the landlord’s interest in the premises, whether by sale, assignment, death, appointment of receiver, or otherwise, the landlord or the landlord’s agent shall, within a reasonable time, do one of the following acts”