You’re about to sign a lease for a Davis apartment when you notice two charges: a security deposit equal to one month’s rent and an additional pet deposit. Can the landlord require both?
Usually not. Under California security deposit law, most landlords cannot collect more than one month’s rent as security, although exceptions apply. They may deduct only qualifying expenses and generally must return the balance with an accounting within 21 calendar days after move-out. Newer rules also govern photographs, inspections, and refunds. Pakpour Banks LLP helps Davis landlords and tenants understand how these requirements apply to their rentals.
California Security Deposit Law at a Glance: Limits, Deadlines, and Deductions
Under California security deposit law, landlords and tenants each have defined responsibilities at move-out. Keep these points in mind.
- Deposits are generally capped at one month’s rent: Most residential landlords cannot collect more than one month’s rent, though qualifying small landlords may collect up to two months.
- A 21-day clock applies at move-out: A landlord generally must return the balance and send an itemized statement within 21 days after the tenant moves out.
- Deductions must be tied to real costs: Landlords may deduct for unpaid rent, damage beyond normal wear and tear, and necessary cleaning, and repair or cleaning deductions generally require photos and supporting records.
- Bad-faith withholding carries a penalty: A landlord who keeps a deposit in bad faith may owe up to twice the deposit, so keep your lease, photos, and statements organized if a dispute arises.
How Much Can a Landlord Charge for a Security Deposit in California?
Under California law, residential security deposits are generally limited to one month’s rent. This includes refundable pet deposits and other charges serving as security, regardless of their label. The revised limit does not apply to security demanded or collected before July 1, 2024.
The new security deposit law in California permits qualifying small landlords to collect up to two months’ rent. They must generally be individuals or LLCs owned entirely by individuals that own no more than two residential rental properties containing a combined four rental units. The statute also counts certain family-trust settlors and beneficiaries as individuals.
The small-landlord exception does not apply to qualifying service members. If a service member is charged more than the standard or advertised deposit due to screening factors, the landlord must explain in writing why and generally refund the excess amount within six months if the rent is current. The one-month cap still applies.
Application screening fees are regulated separately, and a lease of at least six months can allow advance rent of at least six months. Landlords cannot label a security deposit nonrefundable.
What Can a Landlord Deduct from a Security Deposit, and What Proof Is Required?
A landlord’s expense is not automatically a lawful deduction. The reason and supporting evidence matter.
Which Security Deposit Deductions Are Legally Allowed?
California generally permits landlords to deduct qualifying expenses, including:
- Unpaid rent—rent the tenant owes under the rental agreement;
- Property damage—reasonable costs to repair tenant-caused damage beyond ordinary wear and tear;
- Necessary cleaning—costs to restore the property’s original level of cleanliness; and
- Certain property obligations—costs to restore, replace, or return items when authorized by the rental agreement.
Under California tenant security deposit law, landlords cannot charge for preexisting damage or ordinary deterioration. Carpeting that fades from ordinary use is normal wear; a burn may justify a reasonable repair charge.
An invoice proves a cost, not the tenant’s responsibility for it. Deductions must be lawful, reasonable, and supported by the property’s condition.
Dealing With a Deposit Dispute?
Clear Answers Can Make the Next Step Easier
Whether you are waiting on a refund or trying to handle a move-out the right way, money questions between a landlord and a tenant can get stressful fast. The attorneys at Pakpour Banks LLP will listen to your situation, explain your options in plain language, and help you decide what to do next.
Schedule a Free ConsultationHow Do Inspections and Photos Affect Security Deposit Deductions?
Landlords generally must inform tenants of their right to request a pre-move-out inspection. If requested, it occurs in the final two weeks, usually with at least 48 hours’ written notice unless waived. Tenants can then address identified problems.
California also introduced photographic requirements:
- April 1, 2025. Landlords must photograph the unit after possession is returned, before and after any deductible repairs or cleaning.
- July 1, 2025. For tenancies beginning on or after this date, landlords must also photograph the unit immediately before or at move-in.
The City of Davis has separate requirements. Under its rental housing ordinance, covered rentals generally require a move-in inspection within five business days of possession. If it is not done jointly, landlords may provide the form within five business days, and tenants then have 72 hours to complete and return it. Landlords must provide a signed copy within 10 days after the inspection. Some rentals are exempt. These records help establish whether deductions are justified.
When and How Must a California Landlord Return the Security Deposit?
Landlords must explain any deductions and follow the proper refund procedure, rather than just returning the balance. The rules also address electronic payments and shared rentals.
What Must a Landlord Provide Within 21 Days?
Under California security deposit law, landlords generally must return the balance and provide an itemized statement of deductions within 21 calendar days after the tenant vacates.
For repair and cleaning deductions, landlords generally must provide photographs alongside applicable receipts, invoices, or work descriptions. When those deductions total $125 or less, some documentation requirements do not automatically apply, but itemization is still required. A tenant who requests the records within 14 days of receiving the statement must receive them within 14 days of the request.
If landlord-performed repairs cannot reasonably be finished or outside records are unavailable within 21 days, a good-faith estimate may be used. The accounting must be completed within 14 days of the work being finished or the records arriving.
What Changed for Electronic Refunds and Roommates in 2026?
Under changes effective January 1, 2026, landlords who received rent or the deposit electronically generally must refund the balance electronically to an account designated in writing, unless the parties agree otherwise in writing. Written notice of this right is generally required.
Shared rentals have a different default. When several adults occupy a unit, the refund must generally be issued as a check payable to all adult tenants named on the lease when the lease ends. The itemized statement may be sent to one of them.
The landlord and all adult tenants may instead agree in writing on a recipient or percentage split and how statements will be delivered. For Davis roommates, the person who paid the deposit is not automatically entitled to the full refund.
California Security Deposits: Your Questions, Answered
California security deposit law, found mainly in Civil Code section 1950.5, controls how much a landlord can collect, what may be deducted, and when the balance must be returned. It applies to residential rentals and requires an itemized accounting. Details can change with the type of rental, so confirm the rules for your situation.
Request a pre-move-out inspection in writing, which a landlord generally must tell you about and which typically happens in the final two weeks of the tenancy. Clean thoroughly, take dated photos of every room, and give your landlord a forwarding address so the refund and itemized statement reach you.
Generally no, unless your landlord agrees in writing. The deposit secures unpaid rent and damage, and skipping a rent payment can lead to a three-day notice and even an eviction case. If you want to apply it to final rent, ask your landlord to confirm the arrangement in writing first.
The landlord generally must either transfer the deposit to the new owner or return it to you, and the buyer becomes responsible for it. You should receive written notice of the change. Keep your lease and deposit receipt, since they help show what was paid if the new owner questions the amount.
California law does not require interest on security deposits statewide, but some cities have local ordinances that do. Check your lease and your city’s rules, because requirements and rates vary by location. If your city requires interest, ask the landlord how it was calculated.
Yes. Small claims court hears many deposit disputes, and you do not need a lawyer to file. Bring your lease, move-in and move-out photos, the itemized statement, and any written requests. If the landlord kept the money in bad faith, the court may award up to twice the deposit in addition to actual damages.
Reach out when your landlord misses the 21-day deadline, deductions seem unsupported, or you are a landlord facing a demand letter. Early advice can prevent costly mistakes. Pakpour Banks LLP can review the lease, photos, and statement, explain California security deposit rules, and help you choose a practical next step.
What Should Davis Landlords and Tenants Do If a Security Deposit Is Disputed?
Compare the lease, move-in checklist, photographs, itemized statement, and receipts. Tenants can request an explanation or repayment in writing. Landlords should be ready to explain why a deduction is lawful and reasonable. Both sides should keep their communications.
Under California landlord-tenant law, security deposit disputes may be heard in small claims court when the amount falls within the court’s jurisdiction. Tenants may recover improperly withheld money. California law also allows additional statutory damages of up to twice the security deposit when a landlord acts in bad faith. A disagreement over deductions alone does not establish bad faith.
At Pakpour Banks LLP, Davis native Keith Banks brings landlord-tenant experience and an emphasis on cost-conscious solutions. The firm aims to avoid unnecessary litigation when possible. We can help evaluate your records, explain your options, and determine whether negotiation or further action makes sense. Contact us to discuss your security deposit concerns.
Legal References Used to Inform This Page
To ensure the accuracy and clarity of this page, we referenced official legal and other resources during the content development process:
- California Civil Code section 1950.5: Residential security deposit limits, deductions, inspections, refunds, and remedies
- California Civil Code section 1950.6: Application screening fees
- Davis Municipal Code Article 18.11: Rental housing inspection and exemption requirements
- California Assembly Bill 414 (2025), effective January 1, 2026: Electronic refunds and multiple-adult-tenant procedures
- California Code of Civil Procedure section 116.220: General small-claims jurisdiction and California Code of Civil Procedure section 116.221: Claims by natural persons
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