Under California security deposit law, a landlord can generally collect no more than one month’s rent as a deposit and has 21 calendar days after you move out to return it or send an itemized statement of deductions. The governing statute is Civil Code Section 1950.5, and it covers what can be charged, what can be withheld, and what happens when a landlord holds onto money they shouldn’t.
How Much a Landlord Can Charge
Since July 1, 2024, the maximum security deposit for most residential rentals is one month’s rent, whether the unit is furnished or unfurnished. That deposit is on top of any first month’s rent paid before move-in.
A narrow exception applies to small landlords. If the owner is a natural person (including a settlor or beneficiary of a family trust) or an LLC whose members are all natural persons, and they own no more than two residential rental properties with a combined four or fewer units, they can collect up to two months’ rent. The exception does not apply when the tenant is a military service member, and the landlord cannot refuse to rent to a service member because of the lower cap.
A separate protection for service members took effect April 1, 2025. If a landlord charges a service member a higher-than-standard deposit based on credit history, housing history, or similar factors, the landlord must give a written explanation of the higher amount before the lease is signed. That extra amount must be returned after six months if the tenant has stayed current on rent.
What a Landlord Can Deduct
State law recognizes four categories of permissible deductions, and only amounts reasonably necessary within those categories can be withheld:
- Unpaid rent still owed at the end of the tenancy.
- Repairs for damage beyond normal wear and tear caused by you or your guests.
- Cleaning needed to return the unit to the level of cleanliness it was in when you moved in.
- Restoration or replacement of personal property such as furnishings or appliances, but only if the lease specifically authorized the deposit to cover those items.
No portion of a deposit can be labeled “nonrefundable.” California prohibits that language in any lease or rental agreement. Every dollar collected as a deposit is refundable, whatever the landlord calls it. Application screening fees are a separate matter governed by a different statute.
Damage Versus Normal Wear and Tear
This is where most disputes live. A landlord cannot deduct for ordinary wear and tear, whether it existed before your tenancy, built up during it, or accumulated across multiple tenancies. Faded paint, minor scuff marks, carpet worn down by regular foot traffic, and slightly loose door handles all count as normal wear.
Damage from misuse or neglect is different. Large holes in drywall, broken windows, stained or burned carpet, and missing fixtures are the kinds of things a landlord can legitimately charge for. The test is whether the condition goes beyond what you would expect from someone living there normally.
The Pre-Move-Out Inspection
You have the right to a walkthrough inspection before you hand over the keys, and it is one of the most underused tenant protections in the state. The point is to learn exactly what the landlord considers a problem so you can fix it yourself before the final accounting.
The process starts with the landlord. Within a reasonable time after either party gives notice to end the tenancy, the landlord must notify you in writing that you may request an initial inspection and be present for it. If you request it, the inspection is scheduled no earlier than two weeks before the lease ends, and the landlord must give at least 48 hours’ written notice of the date and time.
After the walkthrough, the landlord provides an itemized list of potential deduction items. You then have the remaining time before move-out to address those issues yourself. If you don’t request the inspection, the landlord’s obligations under this provision end, so it’s almost always worth asking.
Getting Your Deposit Back
Once you have moved out, the landlord has 21 calendar days to either return your full deposit or send you an itemized statement of every deduction along with any remaining balance. The clock starts the moment you vacate and return possession.
What the Itemized Statement Must Include
A vague line like “cleaning and repairs” is not enough. Each deduction must be described with enough specificity that you understand what you are being charged for. When total deductions exceed $125, the landlord must also attach supporting documentation: copies of receipts or invoices for third-party work, or a written description of the work performed, time spent, and hourly rate if the landlord or their employee did it.
If repairs genuinely cannot be finished within 21 days, the landlord can send a good-faith estimate instead. That doesn’t buy unlimited time. Within 14 days of completing the actual work, the landlord must send you the final receipts and return any difference between the estimate and the real cost.
Move-In Photos for Newer Tenancies
For any tenancy beginning on or after July 1, 2025, landlords are required to photograph the unit at the start of the tenancy. This creates a baseline record of condition. If a dispute later arises over whether damage existed before you moved in, those photos become evidence.
When the Property Changes Owners
Your deposit doesn’t disappear if the building is sold. The outgoing landlord has two options: transfer the remaining deposit (after any lawful deductions) to the new owner, or return it directly to you with a full accounting. Either way, the old landlord must notify you in writing of what happened, including the new owner’s name, address, and phone number, and any claims already made against the deposit.
If neither the old landlord nor the new one properly handles the transfer, they become jointly liable for returning your deposit. The new owner also cannot demand a replacement deposit without first returning the original amount or providing a full accounting.
Challenging Unfair Deductions
If a landlord withholds part or all of your deposit without justification, start with your evidence. Your lease, move-in and move-out photos or video, the itemized statement (if you received one), and any communications with the landlord all matter. The stronger your documentation at both ends of the tenancy, the better your position.
The Demand Letter
Send a written demand specifying the amount you believe was improperly withheld and explaining why the deductions don’t hold up. Keep the tone factual, reference your evidence, and set a reasonable deadline for a response. The letter creates a paper trail and resolves a surprising number of disputes on its own, because most landlords would rather refund a questionable deduction than face what comes next.
Small Claims Court
When the demand letter fails, you can file in small claims court. California’s small claims limit is $12,500 for individuals, which covers the vast majority of deposit disputes.
A landlord who retained your deposit in bad faith faces a real penalty. The court can award the wrongly withheld amount plus statutory damages of up to twice the full deposit. The landlord also carries the burden of proving that any deductions were reasonable. That burden-shifting matters: the landlord has to justify every dollar, and if they can’t produce documentation, the deduction fails.
Local Rules Worth Checking
Civil Code Section 1950.5 is the statewide framework, but some cities add more. A handful, including Los Angeles, San Francisco, and West Hollywood, require landlords to pay interest on security deposits held during the tenancy. Rates and payment schedules vary by city. If your rental is in a city with rent control or tenant protection ordinances, check whether local rules impose extra obligations beyond state law.