Security Deposit Provisions for Landlords and Tenants in California

A large number of disputes result from disagreements about security deposits. Whether you are engaged in the business of leasing properties or are a tenant seeking to lease a property, it is important to be informed of your rights and obligations. There are several California provisions related to the allocation of a security deposit. , Tenants and landlords should be well informed of these regulations.

Security deposit amounts. California law specifies that the amount a landlord can collect for a security deposit is limited to the equivalent of two months’ rent. Any provision in the lease stipulating that all or some of the deposit is nonrefundable is unlawful in California.

Return of deposits. The landlord is required to return the security deposit within 21 days after the renter has vacated the rental property. The landlord must also provide a detailed statement of deductions to explain any abatement in the security deposit amount. Landlords must give renters advanced notice when drawing from the security deposit amount to make repairs.

Limitations on litigation. When a tenant sues a landlord in small claims court, the maximum allowable amount is $10,000. The only exception to this rule is that a tenant my not file a claim for more than $2500 more than two times annually. Lawsuits typically involve a dispute over deductions that the landlord made from the security deposit or a tenant’s claim that the deposit was not returned in accordance with applicable laws.

Landlord-tenant law can be complex and requires the skills and expertise of a trained professional in the areas of real estate and litigation. Being aware of the various rules and limitations pertaining to security deposits can be instrumental in staying out of small claims court. Shane Coons can guide landlords in this process. Contact him at 949-333-0900 or visit www.ShaneCoonsLaw.com to learn more about his practice and the services he offers to clients.

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Security Deposit Provisions for Landlords and Tenants in California

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