Civil Litigation
For deposits collected since July 1, 2024, most California landlords may charge no more than one month's rent as a security deposit, plus the first month's rent; some small landlords may charge up to two months. After move-out, the landlord has 21 days to return the deposit or send an itemized statement with receipts and, for many deductions, photos. Keeping a deposit in bad faith can cost up to twice the deposit in damages.
Last updated October 4, 2026.
Deposit disputes are among the landlord and tenant issues listed on our civil litigation page, and the firm handles them for both property owners and renters. The rules for homes and apartments all come from Civil Code section 1950.5, most recently amended effective January 1, 2026; this page reflects that version. Commercial deposits follow a separate statute, explained further down.
| Landlord | Maximum security, in addition to the first month's rent |
|---|---|
| Most landlords | One month's rent |
| A natural person, or an LLC whose members are all natural persons, who owns no more than two residential rental properties with no more than four units offered for rent | Two months' rent (but not for a tenant who is a service member) |
| Deposits collected before July 1, 2024 | Not covered by these caps |
"Security" is defined broadly: it includes any payment, fee, deposit or charge imposed at the start of the tenancy, however it is labeled, other than the screening fee allowed by section 1950.6 (section 1950.5(b)). A lease may not call any part of the security "nonrefundable" (section 1950.5(n)). The cap does not bar an advance payment of at least six months' rent on a lease of six months or longer (section 1950.5(c)(2)). For the small-landlord exception, a "natural person" includes the settlor or beneficiary of a family trust (section 1950.5(c)(5)(C)).
Under section 1950.5(b) and (e), deductions are limited to amounts reasonably necessary for unpaid rent, repairing damage beyond ordinary wear and tear caused by the tenant or the tenant's guests, cleaning needed to return the unit to the level of cleanliness it had at the start of the tenancy, and, if the agreement allows, replacing personal property the tenant was to return. A landlord may not charge for damage that existed before the tenancy, for ordinary wear and tear, including the cumulative effect of wear and tear over several tenancies, or for professional carpet or other professional cleaning unless it is reasonably necessary to restore the unit's move-in condition. Charges for materials and labor are limited to a reasonable amount needed to restore the move-in condition (section 1950.5(e)(2)).
The initial inspection matters. If it took place and the tenant's belongings did not hide the problem, the landlord may not deduct for repairs or cleaning that were not on the itemized list, though it may still deduct for damage that happens after the inspection (section 1950.5(f)(4), (6)). The inspection rules do not apply when the tenancy ends under certain eviction notices in Code of Civil Procedure section 1161 (section 1950.5(f)(7)).
No later than 21 calendar days after the tenant moves out, the landlord must send an itemized statement of the deposit and any deductions, and return the rest (section 1950.5(h)(1)). The statement must come with supporting documents (section 1950.5(h)(2)):
| If the deduction is for | The landlord must include |
|---|---|
| Work done by the landlord or an employee | A reasonable description of the work, the time spent and the reasonable hourly rate |
| Work done by an outside company | A copy of the bill, invoice or receipt, with the company's name, address and phone number |
| Materials or supplies | A copy of the bill, invoice or receipt (or a vendor price list for items bought on an ongoing basis) |
| Repairs or cleaning | The photographs required by section 1950.5(g), with a written explanation of the cost |
If repairs cannot be finished within 21 days, the landlord may deduct a good faith estimate and must send the final documents within 14 days of finishing the work (section 1950.5(h)(3)). The documentation rules do not apply when total repair and cleaning deductions are $125 or less, or when the tenant properly waived them, but a tenant can still request the documents within 14 days of receiving the statement (section 1950.5(h)(4), (5)). If the deposit or rent was paid electronically, the remainder generally must be returned electronically to an account the tenant designates (section 1950.5(h)(1)(A)(ii)). Mail goes to the address the tenant provides, or to the vacated unit if none is given (section 1950.5(h)(6)). A landlord that fails in bad faith to follow these rules is not entitled to keep any of the deposit (section 1950.5(h)(7)).
A court may award statutory damages of up to twice the amount of the security, in addition to actual damages, when a landlord claims or keeps a deposit in bad faith, and it may do so even if the tenant did not specifically ask for that relief (section 1950.5(m)). In a deposit case, the landlord has the burden of proving that the amounts claimed were reasonable. A tenant can prove the deposit with any credible evidence, including a canceled check, a receipt or the lease (section 1950.5(p)).
The two-month small-landlord exception does not apply to a service member, and a landlord may not refuse to rent to one because of that limit (section 1950.5(c)(5)(B)). Since April 1, 2025, a landlord that charges a service member a higher than standard deposit because of credit or housing history must explain why in writing, and must return the extra after no more than six months if rent is current (section 1950.5(c)(4)).
Unless all adult tenants agree otherwise in writing, the landlord returns the remainder by a check payable to all adult tenants on the lease and may send the statement to any one of them (section 1950.5(h)(1)(C)).
When the landlord's interest ends, by sale, death or otherwise, the landlord must either transfer the remaining deposit to the successor and notify the tenant, or return it with an accounting (section 1950.5(i)). If that does not happen, the successor can be jointly liable for repaying it (section 1950.5(k)). Families who inherit a rental through a simplified procedure can read how that works on our page about skipping probate for a small estate.
Deposits for offices, shops and other non-residential space fall under Civil Code section 1950.7. If the landlord claims only unpaid rent and the deposit exceeds one month's rent plus a clearly labeled last month's rent, the excess over one month's rent is due back within two weeks after the landlord regains possession, with the rest returned or accounted for within 30 days. In other cases the deadline is 30 days, and bad-faith retention can bring damages of up to $200 plus actual damages (section 1950.7(c), (f)). Our business law page covers commercial lease disputes. Because the deposit terms in a commercial lease are set by the contract as well as the statute, our article on protecting your business with strong contracts is worth reading before you sign one.
For example, imagine a hypothetical tenant who moves out of a Glendale apartment on May 31 after a two-year lease, having paid one month's rent as a deposit. Before leaving she requested the initial inspection; the landlord's list mentioned only a stained carpet, which she had cleaned. On June 25 she receives a statement deducting for repainting the whole unit and for new blinds, with no receipts or photographs.
The statement came 25 days after she vacated, so when it was sent matters. Repainting after two years may be ordinary wear and tear, and items not on the inspection list generally cannot be deducted if her belongings did not hide them. The deductions exceed $125, so receipts and photos were required. She writes to the landlord asking for the documents and the balance, and keeps her lease, her bank record of the deposit, and her own move-out photos. None of this decides whether the landlord acted in bad faith; it lays out what she can prove if the dispute goes to small claims.
Any payment, fee or charge imposed at the start of the tenancy counts as security, however it is labeled, except the screening fee allowed by section 1950.6, so it counts toward the cap (section 1950.5(b)).
The deposit may be used for unpaid rent (section 1950.5(b)(1)), but whether a tenant can skip the last payment depends on the lease and on what else the landlord may claim. Talk it through before relying on it.
Yes, from whoever holds it. The old landlord must transfer it to the new owner and notify you, or return it to you, and a new owner who did not receive it can still be liable (section 1950.5(i), (k)).
Small claims court if the damages claimed, including statutory damages, are within its limits (section 1950.5(o)); otherwise a civil case. Our article on the civil litigation process explains what a full case involves.
Calendar the response deadline right away; see how long you have to respond to a lawsuit in California. Eviction cases have a much shorter deadline.
We represent property owners and renters in deposit disputes and can explain what the statute requires in your situation. Our list of questions to ask before hiring an attorney may help you prepare. Call (818) 244-9000 or request a consultation.
Whether you own the property or rent it, our Glendale team can explain what the statute requires and what can be recovered.
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