Security Deposit
A sum of money paid by a tenant to a landlord at the beginning of a tenancy, held to cover unpaid rent, damage beyond normal wear and tear, or cleaning costs. Governed by Cal. Civ. Code § 1950.5 in California; 24 CFR § 982.313 for HCV units.
Also known as: damage deposit, rental security deposit
Definition
A security deposit is money paid by a tenant at the commencement of a residential tenancy that the landlord holds as security for performance of the tenant's obligations, subject to statutory rules governing collection, holding, and return.
California Statutory Framework
Cal. Civ. Code § 1950.5(b) defines the permissible purposes for which a landlord may retain security deposit funds:
- Compensation for tenant's default in payment of rent
- Repair of damages to the premises caused by the tenant, exclusive of ordinary wear and tear
- Cleaning necessary to restore the premises to its condition at lease inception (ordinary wear and tear excluded)
- Restoration or replacement of personal property or appurtenances
Deposit Limits (California AB 12, effective July 1, 2024)
Cal. Civ. Code § 1950.5(c), as amended by AB 12 (2023), caps security deposits at one month's rent for all residential tenancies, regardless of unit type. Prior law permitted two months' rent for unfurnished and three months' for furnished units. Small landlords owning no more than two residential properties with a total of no more than four dwelling units may collect up to two months' rent until July 1, 2025.
HCV Program Requirements
For Housing Choice Voucher units, 24 CFR § 982.313 permits owners to collect a security deposit, provided it does not exceed the amount charged to unassisted tenants for comparable units, and does not exceed one month's contract rent.
Return Requirements
Under Cal. Civ. Code § 1950.5(g), landlords must return the security deposit (or the balance after lawful deductions) within 21 days of the tenant vacating, accompanied by an itemized statement of any deductions.
Sources
- Cal. Civ. Code § 1950.5, California Leginfo —
ca-leginfo - 24 CFR § 982.313, eCFR —
ecfr
Frequently asked questions
California Statutory Framework
Cal. Civ. Code § 1950.5(b) defines the permissible purposes for which a landlord may retain security deposit funds: Compensation for tenant's default in payment of rent Repair of damages to the premises caused by the tenant, exclusive of ordinary wear and tear Cleaning necessary to restore the premises to its condition at lease inception (ordinary wear and tear excluded) Restoration or replacement of personal property or appurtenances
Deposit Limits (California AB 12, effective July 1, 2024)
Cal. Civ. Code § 1950.5(c), as amended by AB 12 (2023), caps security deposits at one month's rent for all residential tenancies, regardless of unit type. Prior law permitted two months' rent for unfurnished and three months' for furnished units. Small landlords owning no more than two residential properties with a total of no more than four dwelling units may collect up to two months' rent until July 1, 2025.
HCV Program Requirements
For Housing Choice Voucher units, 24 CFR § 982.313 permits owners to collect a security deposit, provided it does not exceed the amount charged to unassisted tenants for comparable units, and does not exceed one month's contract rent.
Return Requirements
Under Cal. Civ. Code § 1950.5(g), landlords must return the security deposit (or the balance after lawful deductions) within 21 days of the tenant vacating, accompanied by an itemized statement of any deductions.
Sources
Cal. Civ. Code § 1950.5, California Leginfo — ca-leginfo CFR § 982.313, eCFR — ecfr