California’s security deposit law (Civil Code § 1950.5) is one of the most detailed and heavily litigated landlord-tenant statutes in the state. It governs how much a landlord can charge, how a deposit may be used, and exactly how and when it must be returned.
With major amendments taking effect in July 2024, April 2025, and July 2025, both landlords and tenants need to understand what the law actually requires and what mistakes can trigger serious penalties.
What Counts as a “Security Deposit”?
Under Civil Code § 1950.5(b), a “security” is any payment collected at the beginning of a tenancy, no matter what it’s called, including security deposits, cleaning deposits, “last month’s rent” (if paid in advance); and any fee intended to cover future damage, cleaning, or default such as a “pet deposit” or “cleaning fee.” Landlords cannot avoid the statute by calling a deposit something else. If it walks like a security deposit, it is a security deposit.
What Can a Security Deposit Be Used For?
A landlord may only deduct amounts that are reasonably necessary for rent that is past due, repair of damage beyond ordinary wear and tear, cleaning necessary to return the unit to the same level of cleanliness as at move-in, and/or restoration or replacement of landlord’s property if specifically authorized by the lease.
On the other hand, landlords cannot charge for ordinary wear and tear, pre-existing damage, upgrades or improvements, and/or professional carpet or cleaning services unless genuinely necessary.
How Much Can a Landlord Charge as a Deposit?
General Rule (effective July 1, 2024) is that most landlords are limited to charging only one month’s rent as a security deposit. However, there are exceptions for the “mom & pop” landlords. A landlord may charge up to two months’ rent only if the landlord is a natural person (or qualifying family trust/LLC), and owns no more than two properties with four total units or fewer
That said, service members get special protection even if renting from a “mom & pop” landlord such that the two-month exception does not apply to service members. Additionally, higher-than-standard deposits charged to service members require written justification and any extra deposit must be returned after six months, assuming at six months the se4rvice member is not in arrears on rent.
Civil Code § 1950.5(n) expressly prohibits lease provisions labeling deposits as “nonrefundable.” If it’s a security deposit, it must be refundable subject only to lawful deductions.
Initial Inspection: A Critical Tenant Right
Before move-out, tenants have the right to request an initial inspection, which allows them to fix issues and avoid deductions. As has been the case since the time of Moses, Landlords must notify tenants in writing of this right, conduct the inspection no earlier than two weeks before move-out and Provide an itemized list of proposed deductions.
If a landlord performs an inspection, they generally cannot deduct for items not identified during the inspection, unless the damage occurred later, or the tenant’s belongings prevented discovery at the time of inspection.
New Photograph Requirements (2025 Changes)
For tenancies beginning July 1, 2025 or later, landlords now must take photos at or before move-in, or later deductions will be prohibited. Beginning April 1, 2025, landlords must also photograph the unit after move-out (before repairs or cleaning) and after repairs or cleaning are completed. These photos must be provided to the tenant along with the security deposit disposition if deductions are made.
The 21-Day Deadline Is Non-Negotiable
Within 21 calendar days after the tenant vacates, the landlord must return the unused portion of the deposit to the tenant along with an itemized statement of deductions (if any). The landlord must also include receipts, invoices, estimates, or detailed explanations of any deductions and include photographs supporting the deductions. Failure to strictly comply can eliminate the landlord’s right to keep any portion of the deposit and may entitle the tenant to twice their deposit or up to three times their deposit if the owner acts maliciously in failing to comply with this requirement.
What Happens If Repairs Aren’t Finished in Time?
If repairs can’t reasonably be completed within 21 days, landlords may provide a good-faith estimate, and final documentation within 14 days of completion. However, estimates must still be reasonable and well-documented.
Final Thoughts
California’s security deposit law is intentionally tenant-protective and increasingly documentation-driven. For landlords, strict compliance is essential. For tenants, understanding these rules can make the difference between losing a deposit and recovering up to three times its value. If you are dealing with a disputed security deposit getting advice from an eviction attorney in San Diego early can prevent costly mistakes.
