California Security Deposit Rules (2026)

California Civil Code § 1950.5 caps a residential security deposit at one month's rent, in addition to the first month's rent, for deposits collected on or after July 1, 2024. Almost any upfront charge counts toward that cap, including pet deposits, cleaning fees and last month's rent. Within 21 calendar days after the tenant moves out, the landlord must return the deposit with an itemized statement of any deductions, and since January 1, 2026 the refund must go back electronically if the tenant paid electronically, unless the parties agree in writing on another method.

At a glance

What the law says

What counts as a security deposit

Section 1950.5(b) defines security as "any payment, fee, deposit, or charge" imposed at the beginning of the tenancy, for any purpose, either to cover the cost of processing a new tenant or as an advance payment of rent. That means all of these count toward the cap:

• A standard security deposit.
• A pet deposit.
• A cleaning fee or key deposit.
• "Last month's rent" collected up front, because it is an advance payment of rent.

Two things are outside the cap: the first month's rent paid on or before move-in, and the application screening fee under Civil Code § 1950.6. See screening fees.

A lease may not call any part of the security "nonrefundable" (§ 1950.5(n)).

The cap

The maximum is one month's rent, "however denominated," in addition to the first month's rent (§ 1950.5(c)(1)). The statute makes no distinction between furnished and unfurnished units. The cap applies to security collected or demanded on or after July 1, 2024 (AB 12); deposits collected before that date are not affected.

Exceptions:

• An advance payment of at least six months' rent on a lease of six months or longer (§ 1950.5(c)(2)).
• Fees for alterations the tenant requests (§ 1950.5(c)(3)).
• Small-landlord exception: up to two months' rent (§ 1950.5(c)(5)), only if both are true: the landlord is a natural person or an LLC whose members are all natural persons (family-trust settlors and beneficiaries count as natural persons), and the landlord owns no more than two residential rental properties with no more than four units in total offered for rent.

Service members. The two-month exception does not apply if the prospective tenant is a service member (Military and Veterans Code § 400), and a landlord may not refuse to rent to a service member for that reason. If a service member is asked for more than the standard security because of factors such as credit or rental history, on or after April 1, 2025 the landlord must give a written statement of the amount and reason by lease signing and return the extra after no more than six months if the tenant is not behind on rent; the return date must be in the lease (§ 1950.5(c)(4)). See military tenants.

Assistance animals. A person with an assistance animal may not be charged an additional security deposit for the animal, though they can be charged for damage it causes (2 CCR § 12185).

What can be deducted

Under § 1950.5(b) and (e), deductions are limited to amounts reasonably necessary for:

1. Unpaid rent.
2. Repairing damage beyond ordinary wear and tear.
3. Cleaning the unit back to the level of cleanliness at move-in.
4. Restoring or replacing personal property, if the lease authorizes it.

The landlord may not charge for damage that existed before the tenancy or for ordinary wear and tear. Professional carpet or other cleaning may be charged only if reasonably necessary.

The pre-move-out inspection

The landlord must tell the tenant in writing of the right to request an initial inspection (§ 1950.5(f)). It takes place no earlier than two weeks before the tenancy ends, with 48 hours' written notice (both sides can waive that in writing). The landlord then gives the tenant an itemized list of proposed deductions, so the tenant can fix those items before moving out.

Photographs

AB 2801 added photo requirements in § 1950.5(g):

• For tenancies beginning on or after July 1, 2025: photos immediately before or at the start of the tenancy.
• Beginning April 1, 2025: photos after the tenant returns possession but before any repairs or cleaning, and again after repairs or cleaning.

The photos must go to the tenant with the itemized statement.

The 21-day deadline and the itemized statement

No later than 21 calendar days after the tenant vacates, the landlord must send an itemized statement of deductions and return the balance (§ 1950.5(h)(1)). The statement must include:

• Copies of invoices or receipts for repairs and cleaning, or, for the landlord's own work, a description of the work, the time spent and a reasonable hourly rate.
• The photographs.

If repairs cannot be finished within 21 days, the landlord may use a good-faith estimate and send the final invoices within 14 days of completing the work. Receipts are not required when repair and cleaning deductions total $125 or less, or when the tenant signed a valid waiver at or after the notice of termination; the tenant can still request the documents within 14 days of receiving the statement. The statement may be emailed if both parties agree.

Use the deposit return deadline calculator to find the date.

How the refund is paid (AB 414, from January 1, 2026)

If the landlord received the deposit or rent electronically, the landlord must return the balance electronically, to a bank or other financial account the tenant designates in writing, or by another electronic method the tenant agrees to in writing. The parties may also agree in writing on a different method. A new owner who received rent electronically has the same duty. The landlord must tell the tenant in writing about the right to an electronic refund within a reasonable time after either side gives notice to end the tenancy, or before the lease ends, unless a written agreement on another method already exists or the tenancy ended under CCP § 1161(2) to (4). Otherwise, the default is personal delivery or a check sent by first-class mail.

Several adult tenants. Without a written agreement signed by all adult tenants, the refund is one check payable to all of them. A written agreement can set percentages and methods, including electronic deposits to each tenant.

When the property is sold

On a sale, the landlord must either transfer the deposit to the new owner and notify the tenant, or return it to the tenant with an accounting. A new owner who fails to make sure this happens is jointly liable (§ 1950.5(i) to (k)).

What owners should do

1. Add up every upfront charge other than first month's rent and the screening fee. The total must not exceed one month's rent, or two months only if you qualify as a small landlord and the tenant is not a service member.
2. Take dated move-in photos and record the unit's condition. The move-in and move-out checklist can help.
3. Give written notice of the right to a pre-move-out inspection, and of the right to an electronic refund if the tenant pays electronically.
4. After move-out, photograph the unit before any work, then again after repairs and cleaning.
5. Send the itemized statement, receipts and photos within 21 calendar days, with the refund by the required method.
6. Charge only allowed items. No ordinary wear and tear, no pre-existing damage, no unnecessary professional cleaning.

The security deposit calculator can check a planned deposit against the cap.

What tenants should know

• If you paid rent electronically, you are entitled to an electronic refund unless you agreed in writing to another method.
• For deductions over $125 you should receive receipts or invoices. If deductions are $125 or less, you can request the documents within 14 days.
• If a landlord keeps a deposit in bad faith, a court may award statutory damages of up to twice the deposit plus actual damages, and the landlord bears the burden of proving the deductions were reasonable (§ 1950.5(h)(7), (m)).
• Small claims court. A deposit claim "may be maintained in small claims court" if the amount is within its limits (§ 1950.5(o)). A natural person may sue for up to $12,500; other plaintiffs, such as corporations and LLCs, up to $6,250 (CCP §§ 116.221, 116.220, in effect since January 1, 2024). No one may file more than two small claims over $2,500 in California in a calendar year (CCP § 116.231).

Step-by-step guides

For the practical side of this rule, see these guides in the California Rental Handbook:

• Holding Deposits on California Rentals: What the Law Does and Doesn't Say
• What Records to Keep for a California Rental
• Lease Clauses That Are Void in California
• The Move-In Inspection, Step by Step (California Photo Rules)
• The Move-Out Process in California, Step by Step

Local rules

Some California cities add local rules on top of state law. Coronado has no local ordinance changing the state deposit rules as of October 2026 (based on a review of its code's contents, which found no rent-control or tenant-protection chapter); see the Coronado Rental Guide. Other San Diego County cities may differ; check your city's municipal code.

Recent and upcoming changes

• July 1, 2024 (AB 12): one-month cap for most landlords.
• April 1, 2025 (SB 611): written statement and six-month return rule when a service member is charged extra security.
• April 1 and July 1, 2025 (AB 2801): move-out and move-in photo requirements.
• January 1, 2026 (AB 414): electronic refunds required when the tenant paid electronically.

Frequently asked questions

What is the maximum security deposit in California?

One month's rent, in addition to the first month's rent, for deposits collected on or after July 1, 2024. A qualifying small landlord (an individual or all-individual LLC owning no more than two rental properties with no more than four units in total) may collect up to two months, but not from a service member.

Does last month's rent count toward the deposit cap?

Yes. Any advance payment of rent collected at the start of the tenancy counts as security under § 1950.5(b). The first month's rent is outside the cap, and an advance of at least six months' rent on a lease of six months or longer is a separate exception.

How long does a landlord have to return a deposit in California?

No later than 21 calendar days after the tenant vacates, with an itemized statement, receipts for deductions over $125, and the before-and-after photographs.

Can a landlord charge a nonrefundable cleaning or pet fee?

No. A cleaning fee or pet deposit collected at the start of the tenancy is security, counts toward the cap, and cannot be labeled nonrefundable. Cleaning can be deducted later only to restore the unit to its move-in cleanliness.

This is general information, not legal advice. Laws change; confirm the current text and your situation with a California attorney.

McKee Properties manages rentals from its Coronado office; contact us with questions about your property.

Sources

• Civil Code § 1950.5 (opens in a new tab)
• AB 12 (2023), deposit cap (opens in a new tab)
• Code of Civil Procedure § 116.221 (opens in a new tab)
• Code of Civil Procedure § 116.220 (opens in a new tab)
• 2 CCR § 12185 (opens in a new tab)

Verified October 19, 2026.