California security deposit rules.
The California rules for residential security deposits in plain English: how much can be charged, how fast it comes back, whether interest is owed, and what catches operators out.
Last reviewed · Statute: Cal. Civ. Code § 1950.5 · Not legal advice
How much can be charged
Effective July 1, 2024 (AB 12), capped at one month of rent, furnished or unfurnished. Small landlords (a natural person, or an LLC of natural persons, owning no more than two residential rental properties with four units in total) may charge up to 2×, but not from a service member.
When it has to come back
Within 21 calendar days of vacancy, the landlord must furnish an itemised statement. Deductions over $125 require receipts/invoices.
Interest
No statewide interest requirement, though several cities (San Francisco, West Hollywood, Berkeley) require interest on local deposits.
Where the money has to sit
No statewide segregation requirement.
What catches operators out
- AB 12 reduced the cap from 2× to 1× starting July 1, 2024. Older leases are brought into line on renewal.
- AB 2801 (2025): photograph the unit after move-out, before and after any repair or cleaning you deduct for (from April 1, 2025), and at move-in for tenancies starting on or after July 1, 2025. Deductions are limited to what is reasonably necessary to restore move-in condition.
- San Francisco, West Hollywood, and Berkeley each require local interest payments. Check the city ordinance.
- Bad-faith retention exposes the landlord to up to 2× the deposit in statutory damages plus actual damages.
What this looks like with Standby in California.
When a resident takes a Standby certificate there is no cash deposit to hold, so the cap, the return deadline and the interest rules above have nothing to attach to. You are covered up to the full deposit and draw on it when you need to.
When a resident pays cash instead, Standby handles that deposit under your lease and California law, so your team is not tracking return deadlines by hand.
This page summarises the most common single-family and multifamily residential rule in California. Furnished units, senior leases, mobile-home tenancies and short-term rentals can differ, and city ordinances may override the state default. Check the statute before relying on a figure for a specific lease.