California Security Deposit Limits: Amounts, Deductions, and Returns

California's general residential security deposit limit is one month's rent for furnished and unfurnished homes. A qualifying small landlord may collect up to two months, subject to the ownership conditions and service-member exception in Civil Code section 1950.5. The date the security was collected or demanded also matters.

Reviewed October 2, 2026. The earlier published version used the former two-month unfurnished and three-month furnished limits. Those figures are no longer the general residential limits.

The general cap and a worked example

Section 1950.5(c)(1) generally limits total security to one month's rent, in addition to the first month's rent paid on or before initial occupancy. Furnishing a home does not increase that general cap.

For a home renting at $2,200 per month, the general security ceiling is $2,200. First-month rent and security should appear separately on the move-in statement. Listing a $2,200 deposit plus a $400 pet deposit would produce $2,600 in security, exceeding the general ceiling unless an applicable statutory exception permits it.

Who qualifies for the two-month exception?

Under section 1950.5(c)(5), both ownership conditions must be met:

• The landlord is a natural person, or an LLC whose members are all natural persons.
• The landlord owns no more than two residential rental properties that collectively contain no more than four dwelling units offered for rent.

The exception does not apply to a prospective resident who is a service member. The statute also prohibits refusing that resident because the higher security is unavailable.

The natural-person definition includes a settlor or beneficiary of a qualifying family trust. The statute defines that trust and the permitted family relationships. Verify the actual ownership documents before applying the exception.

At $2,200 monthly rent, a qualifying exception permits up to $4,400 in security. A single property alone does not establish eligibility. The owner could hold additional rental units elsewhere.

Count charges by their purpose

Section 1950.5 defines security broadly. Separate pet, cleaning, or key deposits do not create extra allowances above the applicable combined limit. A lease also cannot characterize security as nonrefundable.

Applicant screening fees have their own rules under section 1950.6. Use the California screening-fee guide to review that separate process. Section 1950.5(c) also addresses specified advance-rent and resident-requested alteration arrangements. They require their own conditions rather than simply relabeling a deposit.

Existing deposits and service-member rules

Section 1950.5(c)(6) states that the subdivision does not apply to security collected or demanded before July 1, 2024. Preserve the original lease, demand, receipt, and collection history when reviewing an existing deposit.

A separate service-member provision applies on or after April 1, 2025 when security within the general cap is higher than the standard or advertised amount because of credit, housing history, or another resident-related factor. It requires a written explanation by lease signing and return of the additional amount after no more than six months of residency if the resident is not in rent arrears during that period. The return date belongs in the lease. See section 1950.5(c)(4) for the exact conditions.

What deductions can cover

The original collection limit and the later deduction decision are separate questions. Sections 1950.5(b) and (e) allow only reasonably necessary amounts for specified purposes, including unpaid rent, damage beyond ordinary wear, cleaning back to the move-in level, and certain lease-authorized personal-property obligations.

A faded wall or worn carpet does not become a resident charge merely because it needs attention. Compare the move-in condition with the move-out evidence. Preexisting defects and ordinary wear cannot support a deduction. Professional cleaning must be reasonably necessary under the statute, rather than an automatic charge for every move-out.

Keep dated photographs, condition records, work descriptions, and the actual costs together. For tenancies beginning on or after July 1, 2025, the statute requires move-in photographs. Beginning April 1, 2025, it requires photographs after possession returns, before deductible repairs or cleaning, and after that work. Those photographs accompany the required deduction explanation.

Return and accounting requirements

Section 1950.5(h) generally requires the itemized statement and remaining security no later than 21 calendar days after the resident vacates. Deducted repair and cleaning charges need the prescribed supporting documents, subject to the statute's limited exceptions and later documentation requests.

If qualifying work cannot reasonably be completed within that period, or third-party documents have not arrived, the statute permits a good-faith estimate with the statement. The completed documentation is then due within 14 calendar days of completing the repair or receiving the documents. An estimate is not permission to leave the account unresolved.

The current law also addresses electronic returns and multiple adult residents. Where security or rental payments were received electronically, it specifies electronic return and written-designation or alternative-agreement requirements. Multiple-adult households have separate payee and written-agreement rules. Confirm the applicable subsection before choosing a payee or delivery method.

The California Department of Real Estate's move-out guidance explains the initial-inspection opportunity, deductions, and supporting records. Use that process alongside the current statute.

Keep the amount and the evidence aligned

Before quoting a deposit, compare the rent, combined security charges, ownership facts, and collection date. At move-out, reconcile the opening deposit balance, supported deductions, refund, and delivery evidence.

Section 1950.5(m) allows additional statutory damages of up to twice the security for specified bad-faith conduct, in addition to actual damages. That is not an automatic penalty for every error or dispute. This residential article also does not determine commercial deposit obligations, which are addressed separately in section 1950.7.

Discuss property management support with Coastline Equity if you need help keeping move-in charges, condition records, and deposit accounting organized. Property-specific rules and disputed deductions still require review of the actual tenancy facts.