California Security Deposit Law (2026)

How much can you charge? (AB 12, effective July 1, 2024)

The maximum security deposit is now one month’s rent, whether the unit is furnished or unfurnished.

There is a narrow small-landlord exception: a landlord who is a natural person (or an LLC made up only of natural persons) and owns no more than two residential rental properties totaling no more than four units may charge up to two months’ rent — unless the prospective tenant is a service member, in which case the one-month cap applies.

The 21-day return deadline

After a tenant moves out, you must return the deposit — or the remaining balance plus an itemized statement of deductions — within 21 calendar days.

If you deduct for repairs or cleaning, the itemized statement must describe each deduction, and for amounts over $125 you must include receipts or estimates.

What you can — and cannot — deduct

Permitted deductions under §1950.5 are limited to:

• Unpaid rent
• Cleaning to return the unit to its move-in condition
• Repair of damage beyond normal wear and tear
• Restoring or replacing personal property, where the lease allows it

The 2× penalty for bad faith

If a court finds you retained a deposit in bad faith, it may award the tenant up to twice the amount of the deposit in statutory damages, on top of the deposit itself. Missing the 21-day deadline or failing to itemize are common triggers.

Does this apply to your property?

Answer these to see where you stand under §1950.5:

• Is this a residential rental? — §1950.5 governs residential tenancies; it does not apply to commercial leases.
• Are you a natural person (or an LLC made up only of natural persons) who owns no more than two residential properties totaling no more than four units? — If yes, you may qualify for the two-month deposit cap instead of one month.
• Is the prospective tenant a service member? — If yes, the one-month cap applies even if you otherwise qualify as a small landlord.
• Has the tenant already moved out? — If yes, your 21-day return clock is already running.

Example — sample property

A landlord owns 10 rental units (too many to qualify for the small-landlord exception) and rents a unit for $2,000/month. The maximum deposit allowed is one month’s rent: $2,000.

The tenant moves out. The landlord finds $300 of cleaning needed beyond normal wear and tear. Because the deduction exceeds $125, the landlord must include a receipt or estimate. The landlord returns $1,700 plus the itemized statement and receipt within 21 calendar days of move-out.

How Veluna monitors this

After you add a property, Veluna tracks the 21-day security-deposit return deadline against your logged move-out date and sends a push alert as it approaches — that deadline tracking is real. If California changes the §1950.5 deposit cap, deduction rules, or the AB 12 exception, our team reviews the change before any alert reaches your dashboard.

Frequently asked questions

How long does a California landlord have to return a security deposit?

21 calendar days from move-out, with an itemized statement of any deductions (Civ. Code §1950.5).

What is the maximum security deposit in California in 2026?

One month’s rent as of July 1, 2024 (AB 12). A qualifying small landlord owning no more than two properties / four units may charge up to two months, except to service members.

Can a landlord charge for normal wear and tear?

No. §1950.5 allows deductions only for unpaid rent, cleaning to move-in condition, and damage beyond ordinary wear and tear.