Tenants' Guide to Best Practices for California Security Deposits

Security deposit administration in California is governed by Civil Code Section 1950.5, which provides strict requirements that landlords must adhere to in order to keep any portion of a security deposit. For instance under California law, security deposits can only be used by a landlord to satisfy four purposes under law.

A security deposit can only be retained by a landlord to:

1. Satisfy any past-due rent.
2. Bring the condition of the unit to the same level of cleanliness as it was when the tenant took possession.
3. Repair any damages to the premises less wear and tear.
4. Repair any other property of the landlord that was provided as a part of the lease agreement.

Keeping a tenant's deposit for any other reason is illegal.

When you move in

Generally, for leases that begin after July 1, 2024, the maximum security deposit at an apartment complex is one month’s rent (two months for certain small landlords).

When you move in, you should take videos and photographs of the unit making special note of any unclean or damaged areas of the unit or any wear and tear. In particular, the condition of the carpets, walls and appliances should be noted.

Frequently, your landlord will do a move-in inspection and ask you to sign off on the condition of the unit. It is in your best interest to make notations on that inspection report noting anything that you feel is not clean or is damaged in the unit.

For any discussions you had with your landlord that you feel is important to make a record of, it is advisable to send an email to them immediately following the discussion making note of what was said.

Before you move out

After you give notice that you will be vacating the unit (ideally per the terms of your lease), the law requires the landlord to provide an opportunity in writing for a pre-move out inspection at an agreed upon time.

Following the inspection, the landlord is required to provide you with an itemized statement specifying any repairs or cleaning that appears to be required. The purpose of the pre-move out inspection is to provide you with the opportunity to cure any issues prior to any charges being deducted from your security deposit.

It is unlawful for a landlord to make any portion of a security deposit "non-refundable," for instance, by requiring you to pay a “cleaning fee” no matter the condition of the unit, or requiring you to get the carpets professionally cleaned.

As with the initial inspection, it is a best practice to either record the inspection or to send an email memorializing what was said and what occurred during the inspection to the landlord.

After you move out

After you move all your belongings and perform any cleaning or repairs, it is advisable to take photographs and videos of the condition of the unit.

You are responsible for cleaning the unit to bring it to the same level of cleanliness that it was when you took possession, you are also responsible for making any repairs to the premises less normal wear and tear.

Wear and tear disputes occur most frequently with carpet replacement and painting charges. Although there is no set definition of wear and tear, painting is generally considered to have a lifespan of four years while carpet has a lifespan of about seven years.

As such, as long as you lived at the property for one year, and assuming that the carpet and paint was new when you took possession, the landlord should always pro-rate the cost of a carpet replacement or painting (if required) accounting for the remaining lifespan of the paint or carpet.

The landlord has 21 days to return the security deposit

The landlord has 21-days to return the security deposit and provide certain proof of work. This includes an itemized statement detailing any deductions they made. The itemized statement must provide a reasonable description and sufficient evidence of the work performed. Proof of work means invoices from vendors and a record of hours worked by in-house staff. Further, the law requires photographic evidence of the condition of the unit and the work performed.

The law specifies that if the landlord deducts $125 or more from your security deposit, it must provide the following proof:

• If vendors did the work, the landlord must provide the invoice provided from the vendor; and
• If the landlord did the work, they must provide a reasonable description of the work performed that includes the hours spent working and the hourly rate charged.

Your rights under Section 1950.5 cannot be waived unless you agree after giving notice of your intention to vacate. The lease cannot waive your rights under law with respect to the administration of security deposits. However, the law does allow a waiver of your rights if you execute one with proper disclosures, while or after giving your notice to vacate. Nonetheless, you can reinstate your rights under the law upon written demand within 14 days of receiving an itemized statement.