Written by: Jamie Sternberg, Esq. and Tracey Merrell, Esq.
Updated April 2024

*** Reminder ***

Starting July 1, 2024 the maximum deposit demanded or received can be no more than 1 month total including all other deposits California Civil Code §1950.5 establishes a maximum security deposit that can be charged to California residential tenants:

Up until June 30, 2024
• 2 months’ rent for an unfurnished unit
• 3 months’ rent for a furnished unit

SB 644 amended Civil Code 1950.5, reducing the amount that a landlord can charge service members for a security deposit on residential rental housing. Effective January 1, 2020, landlords may not request a security deposit of more than one month’s rent for an unfurnished unit, and two month’s rent for a furnished unit, if the unit is rented to a service member. This law does not apply in a roommate situation, where property is rented to a group of individuals, and at least one of the group is not the service member’s spouse, parent, domestic partner or dependent. It also does not apply if the tenant has a history of poor credit or of causing damage to rental property or its furnishings. “Service member” is defined in Military and Veterans Code §400, and is limited to active duty service members.

On or after July 1, 2024
As a result of AB12, the maximum amount for landlords will be limited to one month deposit regardless of whether it is furnished or not furnished. There is a limited exception for property owners who are either natural persons or limited liability companies that are natural persons AND they own no more than two parcels of land with no more than four units offered for rent. For military members the maximum amount for a security deposit will always be limited to one month security deposit and regardless of the type of ownership of the property. Additionally, a landlord may not refuse to rent to a service member due to the reduced security deposit. The maximum may be increased by an additional ½ month’s rent if the unit has a waterbed.

 

This article is for general information purposes only and is provided to our clients with information on legislative changes, These courtesy notifications are not meant to be exhaustive and do not take the place of legislative services or membership in trade associations. The legal alerts are provided on selected topics and should not be relied upon as a complete report of all new changes of local, state, and federal laws affecting property owners and managers. Laws may have changed since this article was published. Before acting, be sure to receive legal advice from a competent attorney. 
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