California Security Deposit Limits: Amounts, Deductions, and Returns

State's main housing safe 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 owners states and service-member gap in Civil Code section 1950.5. The date the safe 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 main housing limits.

The general cap and a worked example

Section 1950.5(c)(1) often limits total safe to one month's rent, in addition to the first month's rent paid on or. Before initial use. Furnishing a home does not increase that main cap.

For a home renting at $2,200 per month, the main safe ceiling is $2,200. First-month rent and safe should appear separately on the move-in statement. Listing a $2,200 deposit plus a $400 pet deposit would produce $2,600 in safe, exceeding the main ceiling unless an local state gap permits it.

Who qualifies for the two-month exception?

Under section 1950.5(c)(5), both owners states 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 housing rental sites that collectively contain no more than four dwelling units offered for rent.

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

The natural-person term includes a settlor or beneficiary of a qualifying family trust. The statute defines that trust and the permitted family ties. Check the actual owners files before applying the gap.

At $2,200 monthly rent, a qualifying gap permits up to $4,400 in safe. A single site alone does not set eligibility. The owner could hold more rental units elsewhere.

Count charges by their purpose

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

Applicant screening fees have their own rules under section 1950.6. Use the State screening-fee guide to review that split step. Section 1950.5(c) also addresses specified advance-rent and resident-requested alteration arrangements. They need their own states 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 safe collected or demanded before July 1, 2024. Preserve the original lease, demand, receipt, and collection past when reviewing an current deposit.

A split service-member provision applies on or after April 1, 2025. When safe within the main cap is higher than the standard or advertised amount. This is because of credit, housing past, or another resident-related factor.

It needs a written explanation by lease signing and return of the more 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 states.

What deductions can cover

The original collection limit and the later deduction choice are split questions. Sections 1950.5(b) and (e) allow only reasonably needed amounts for specified purposes. This includes unpaid rent, damage beyond ordinary wear, cleaning back to the move-in level. Certain lease-approved personal-site duties.

A faded wall or worn carpet does not become a resident charge merely. This is because it needs focus. Compare the move-in state with the move-out proof. Preexisting defects and ordinary wear cannot support a deduction. Skilled cleaning must be reasonably needed under the statute, rather than an automatic charge for each move-out.

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

Return and accounting requirements

Section 1950.5(h) often needs the itemized statement and remaining safe no later than 21 calendar days after the resident vacates. Deducted repair and cleaning charges need the prescribed supporting files, subject to the statute's limited gaps and later records requests.

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

The current law also addresses electronic returns and many adult residents. Where safe or rental payments were received electronically, it specifies electronic return and written-designation or alternative-lease rules. Many-adult households have split payee and written-lease rules. Confirm the local subsection before choosing a payee or delivery method.

The State Team of Real Estate's move-out guidance explains the initial-check option, deductions. Supporting records. Use that step alongside the current statute.

Keep the amount and the evidence aligned

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

Section 1950.5(m) allows more state damages of up to twice the safe for specified bad-faith conduct, in addition to actual damages. That is not an automatic penalty for each error or dispute. This housing article also does not find commercial deposit duties, which are addressed separately in section 1950.7.

Discuss site care support with Coastline Equity if you need help keeping move-in charges, state records. Deposit books organized. Site-clear rules and disputed deductions still need review of the actual tenancy facts.

If you are adjusting safe deposit limits under AB 12 or updating lease intake standards, Request a Site Care Results Review with Coastline Equity site care services.