How Much Can a Landlord Charge for a Security Deposit in California?

Property owners in California often find themselves asking how much they can legally require as a security deposit. The answer is straightforward, but the rules are strict, and failing to follow them can lead to disputes or even legal claims.

California’s Security Deposit Limits

In California, state law sets clear caps on the amount landlords can collect as a security deposit:

• Unfurnished units: Up to two months’ rent

• Furnished units: Up to three months’ rent

• Commercial properties: No statutory limit

This means if your property rents for $2,000 a month and is unfurnished, the maximum deposit you can request is $4,000.

What Security Deposits Can Cover

A security deposit is not extra income. By law, it may only be used for specific purposes, including:

• Unpaid rent

• Repairing damage beyond normal wear and tear

• Cleaning to restore the unit to its original condition at move-in

• Replacing personal property provided with the rental (such as appliances or furniture)

Using deposits for anything outside these categories can put a landlord at risk of a tenant dispute.

Returning Security Deposits

California requires landlords to return the security deposit within 21 calendar days of a tenant moving out. If deductions are made, you must provide:

• An itemized statement of all charges

• Receipts or invoices for any repairs or cleaning costs

• A refund of the remaining balance

Failure to return the deposit within this time frame can expose you to penalties of up to twice the amount of the deposit, in addition to the original deposit owed.

Common Mistakes Property Owners Make

1. Charging above the legal maximum – Tenants can challenge this in court.

2. Withholding for normal wear and tear – Routine carpet wear or faded paint cannot be charged.

3. Missing the 21-day deadline – Even honest mistakes can result in costly penalties.

4. Not keeping documentation – Lack of photos, invoices, or move-in condition reports weakens your case in disputes.

Best Practices for Landlords

• Always conduct a move-in inspection with photos and a checklist.

• Provide tenants with a clear move-out guide so expectations are set early.

• Use a separate trust account for deposits to avoid mixing funds.

• Stay updated on local ordinances, as some California cities add their own requirements.

Be the Owner Who Avoids Costly Deposit Disputes

Security deposits may seem simple, but mishandling them is one of the fastest ways for landlords to end up in small claims court. By following state rules and documenting everything carefully, you protect both your property and your relationship with tenants.