5 Mistakes Landlords Make with Security Deposits

A security deposit can cover permitted unpaid rent, damage, cleaning, or certain lease obligations. It is not a general repair fund. These five mistakes are worth checking before the next California residential move-out.

1. Missing the 21-day statement and refund

The remaining deposit and an itemized statement of deductions are generally due within 21 calendar days after the tenant vacates. It is not a rule that the entire deposit must be refunded regardless of lawful deductions. If a repair or outside invoice is not ready, Civil Code section 1950.5(h) permits a good-faith estimate under stated conditions and then requires final records within 14 calendar days after the work or invoice is complete. Put both dates on the move-out calendar.

2. Charging for the wrong condition

A deduction for damage must exclude ordinary wear and pre-existing conditions. Cleaning is limited to what is reasonably needed to return the unit to its move-in level of cleanliness. A lease term cannot authorize an unrelated charge or make ordinary wear billable. Compare the same room and feature at move-in and move-out before deciding what work belongs to the former resident.

3. Skipping the inspection and photo record

Tell the resident in writing about the option to request an initial inspection before move-out and the right to attend. If requested, follow the timing and notice rules in section 1950.5(f). Landlord move-in photos are required for tenancies beginning on or after July 1, 2025. Since April 1, 2025, photos are also required after possession returns, before chargeable repairs or cleaning, and after the work. A blank condition form cannot replace those photos.

4. Sending a charge without its cost support

The itemization ordinarily needs invoices or receipts for contractor work and materials. When the landlord or an employee did the work, describe the task, time spent, and reasonable hourly rate. Required photos accompany the explanation of repair or cleaning charges. Limited documentation exceptions and the tenant’s later request right appear in the statute. “Repair: $400” with no explanation is a weak record even if the repair happened.

5. Treating screening as a cure for deposit mistakes

Screening has its own fair housing limits and cannot prove a move-out condition. A deposit dispute turns on whether the particular charge is lawful and documented. Check the move-in record, the inspection offer, photos, invoices, and return method. Our full deposit return guide walks through that sequence; the AB 2801 guide explains the photo dates and current statutory details.