Security Deposits

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A security deposit is money that a landlord collects, typically at the beginning of the tenancy, in the event you fail to pay the rent or cause damage to the rental unit. The security deposit is usually collected with the first and last month’s rent.

Other examples of security deposits are:

• Cleaning fees
• Key deposits
• Pet deposits

Note: It is against the law for a landlord to collect “non-refundable” security deposits.

How much can the deposit be?

Before July 1, 2024, security deposits were limited to:

• Unfurnished Unit: No more than two (2) months’ rent
• Furnished unit: No more than three (3) months’ rent

Effective July 1, 2024, security deposits are limited to:

• One (1) month’s rent, regardless of whether a unit is furnished or unfurnished.
• Exception: Two (2) month’s rent for small rental property owners if the landlord:
  • (1) is a natural person or a limited liability corporation in which all members are natural persons and;
  • (2) owns no more than 2 residential rental properties that collectively include no more than 4 dwelling units offered for rent.

What can my deposit be used for?

When a tenant moves out, a landlord can use the deposit for:

• Past due rent
• Repairing damage caused by the tenant or tenant’s guests;
• Cleaning costs if the unit is not as clean as when the tenant first moved in; and
• Covering the cost to restore personal property (such as keys, garage controller, furniture).

The landlord cannot use the deposit for repairs due to “ordinary wear and tear.”

Can the landlord increase my security deposit during my tenancy?

Yes. However, your landlord must first give you a 30-day written notice.

Your landlord may not be allowed to raise your deposit if:

• You have already paid the maximum security deposit allowed by law;
• You live in a rent-controlled unit,
• You have a lease that prevents your rent from being raised.

Unincorporated LA County Security Deposit Restrictions:

Landlords of fully covered rental units subject to the Los Angeles County’s Rent Stabilization and Tenant Protections Ordinance (RSTPO), Chapter 8.52 of the County Code, may not increase the security deposit, regardless of the amount, during the duration of the tenancy.

To learn more about the RSTPO, click here.

Can I collect interest on a security deposit?

State law does not require landlords to pay interest on security deposits, but some local rent control laws do. Tenants should contact their local city hall to determine if there are rent control laws for their city and jurisdiction relating to security deposits.

To find out which jurisdiction you are in, visit the Los Angeles County Registrar-Recorder/County Clerk website and select “District Map Look Up By Address.”

What if the property is sold?

If your landlord sells the property, he must return your deposit or transfer it to the new owner. If neither happens, then both the old and new owners may be responsible for returning your deposit.

When does my landlord have to return my deposit?

The landlord must return your deposit within 21 days after you move out.  If any deductions are made, the landlord must give you a written explanation of all the deductions. Landlords must also give you a refund of any remaining balance.

If your landlord does not return the deposit, or if you disagree with the amounts deducted, you can sue in Small Claims Court.  For more information on how to file a Small Claims lawsuit contact our Small Claims Advisors. You can also try our free Dispute Resolution Program (mediation) to help resolve your dispute without going to court.

To learn more about the moving out process, click here.

Tips for avoiding Security Deposit disputes:

• Know your rights: Familiarize yourself with tenant rights regarding security deposits in California and any local protections that may apply.
• Read and understand your rental/lease agreement: Before entering a contract, carefully read and understand the terms of your contract.
• Document move-in condition: Upon moving in, inspect the rental unit with the landlord or property manager. Take photos or videos documenting any existing damage or issues. This documentation can prevent disputes about pre-existing conditions when you move out.
• Communicate in writing: Maintain written communication with your landlord regarding any repairs needed during your tenancy. This creates a record of your attempts to maintain the property and gives you proof of any agreements made.
• Follow move-out procedures: When preparing to move out, review the lease for move-out procedures.
• Give proper notice: Provide your landlord with the required thirty-day (30) notice with your intention to move out.
• Do not opt out of the pre-move-out inspection: Request a joint inspection with your landlord before moving out. This allows you to address any issues that may affect your security deposit refund. Document the condition of the unit during this inspection.
• Clean and repair: Clean the rental unit thoroughly and make any necessary repairs before moving out.

Security Deposits rules are codified in California Civil Code 1950.5.

Disclaimer: This page contains general information related to Civil Code 1950.5 and is not legal advice. Readers should consult with an attorney for legal advice.

 

County of Los Angeles Department of Consumer and Business Affairs. Last updated:  July 5, 2024