Did you know that there’s a limit on how much a landlord can collect for a security deposit?
If you’re a landlord or a renter in California, here’s what you need to know about AB 12, which became law on July 1, 2024.
Security deposits that were collected BEFORE July 1, 2024 are not affected by this law.
New Security Deposit Limits
California Assembly Bill 12 (AB 12) amended Civil Code § 1950.5(c)(1). Here’s the full text of the law.
According to AB 12, Security deposits collected on or after July 1, 2024 can’t exceed one month’s rent. This limit includes a pet deposit, and/or cleaning deposit.
What about Furnished Units?
The law applies to both furnished and unfurnished rentals.
What About the Cost for Alterations?
If you need alterations made to a rental property, the costs can be charged in addition to the security deposit. On the other hand, landlords can’t collect any extra money for cleaning or repairs.
Additional Deposit for Waterbeds
I don’t think I have seen a waterbed since the early 90s… but if you have one, all landlords may collect an additional waterbed deposit, limited to HALF a month’s rent. This is because of Civil Code § 1940.5 – you can read the full text of the law here.
Are any Landlords Exempt from this New Security Deposit Limit?
If a landlord qualifies as a Small Landlord, they can collect a security deposit up to two months’ rent.
The Small Landlord Exception applies to landlords if both of the following conditions exist:
- The landlord is a natural person, or limited liability company in which all members are natural persons. A natural person includes a settlor or beneficiary of a trust in which the other settlors and beneficiaries are related to each other.
- The landlord owns no more than two residential rental properties that include no more than four dwelling units offered for rent.
Special Consideration for Members of the Armed Services
Even if a landlord qualifies as a Small Landlord, they may NEVER charge active members of the armed services a deposit exceeding one month’s rent. This includes:
- Active members of the Army, Navy, Air Force, Marine Corps, Space Force, or Coast Guard, or reserve members ordered into active duty; or
- Members of the California National Guard, State Guard, or Naval Militia called or ordered into active service.
What if my tenant rights are being violated?
If you are a tenant, and you believe your landlord is violating the law, you can report them. Reach out for legal assistance as soon as possible. Go to the Legal Aid Society of San Diego to see if you qualify for low- or no-cost legal assistance.
The State of California Department of Justice has a helpful website describing landlord-tenant protections: https://oag.ca.gov/tenants
You can also read all about tenants’ and landlords’ rights and responsibilities at the Department of Real Estate website.
For more information
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If you have any other questions, please contact me anytime.
