top of page
  • Writer's pictureSara Naheedy

Security Deposit Law Changes on July 1, 2024!


A security deposit is money, usually 1 to 2 month's rent, that a landlord holds in case the tenant causes any damage to the rental unit. Most security deposit issues are governed by state law. Under Section 1950.5 of the California Civil Code, a landlord may generally collect:

-Up to two months rent for deposits on unfurnished apartments

-Up to three months rent for deposits on furnished apartments

This applies no matter what the security deposit is called. It may be called: last month's rent, a move-in fee, a cleaning fee, a pet deposit, a key deposit, etc. and it is still considered a security deposit.

There is no such thing as a "non-refundable" security deposit.

State law requires the landlord to refund deposits within 21 days of the tenant vacating the unit.

Changes to Security Deposit laws:

AB 12 amends California Civil Code Section 1950.5 to limit the maximum security deposit for a dwelling unit to one month's rent, regardless of whether the unit is furnished or unfurnished.

Exception: If the property owner is:

A natural person or a limited liability corporation in which all members are natural persons, and

Owns no more than 2 residential rental properties that collectively include no more than 4 dwelling units offered for rent then the maximum security deposit maximum cannot exceed two months’ rent, regardless of whether the unit is furnished or unfurnished.

The changes apply to security deposits collected on or after July 1, 2024.

If you have questions on this new law and how it may affect you, please call Sara Naheedy Law APC to discuss. We are happy to help you with your real estate law needs!


bottom of page