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What you need to know about California's new security deposit cap, including the exceptions
With the new limits on security deposits, the California code just got a little more tenant-friendly.
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Topline:
Starting today, one month's rent will be the maximum security deposit allowed for most apartments and other housing rentals.
What was the old law?: Asking for two or sometimes three months' rent as a security deposit had previously been allowed in California, but that'll now be illegal in most cases.
Does this include furnished apartments?: Yes, furnished apartments are also capped at one month's rent. Previously, landlords could ask for as much as three months' rent as a security deposit for these living spaces.
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Wait, why are you saying "most"?: The law includes an exception for small landlords with a maximum of four rental units and two properties total. They can still ask for two months' rent as a rental deposit. All other landlords are capped at one month's rent.
Are there any additional protections in this law?: Service members may be entitled to even lower security deposits. If this applies to you, the state recommends checking with your base legal office for assistance.
More information on security deposits: Security deposits are refundable by state law minus allowed expenses, and deductions can be challenged if the tenant feels they are unfair. For more information on the current law, see this fact sheet from the California attorney general's office.
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