John Wilds, President
Tranquility Property Management & Real EstateServices
john@tranquilitysandiego.com
Understanding Security Deposits in California: What Landlords Need to Know for 2025
John Wilds • March 26, 2025
As a California landlord, understanding security deposit laws is key to maintaining a successful rental property and avoiding tenant disputes. With recent changes to California Civil Code and new photo documentation requirements, now is a great time to revisit what landlords need to know about security deposits.
In this blog, we’ll break down some of the most frequently asked questions and new regulations taking effect.
What is a Security Deposit in California?
California Civil Code §1950.5(b) defines a security deposit as any payment, fee, or deposit required at the start of a tenancy to cover move-in costs or serve as advance rent. This includes amounts that may be used for:
- Unpaid rent due to tenant default
- Repairing tenant-caused damage (excluding normal wear and tear)
- Cleaning to restore the unit to its original move-in condition (for tenancies starting after January 1, 2003)
- Restoring or replacing property, as permitted by the rental agreement
How Much Can a Security Deposit Be?
Starting July 2024, landlords—except in limited cases—cannot charge more than one month’s rent as a security deposit. For active-duty military tenants, the cap is strictly one month’s rent with no exceptions.
Regardless of how it’s labeled—whether it’s called a “security deposit,” “cleaning deposit,” or “pet deposit”—these amounts are subject to the same legal rules. All deposits must be fully refundable; no portion may be designated as “nonrefundable.”
What Can Landlords Deduct from a Security Deposit?
When a tenant moves out, landlords can deduct certain costs from the security deposit. These may include:
- Unpaid Rent – Any rent owed at the end of the lease
- Damage Beyond Normal Wear and Tear – Significant damage like holes in walls, broken fixtures, or pet-related destruction. Normal wear and tear (e.g., minor scuffs or faded paint) is not deductible, though interpretations can vary.
- Cleaning Costs – If the unit isn’t returned in a clean condition comparable to move-in, the landlord may charge for necessary cleaning.
- Restoring Unauthorized Modifications – If a tenant made unapproved changes (like painting or installing fixtures), landlords may deduct the cost to restore the unit to its original condition.
What Documentation is Required for Security Deposit Deductions?
The burden of proof is on the landlord when making deductions from a security deposit. To support any charges, landlords must provide:
- Invoices or Receipts – All deductions must be backed by actual costs, including receipts or invoices for work performed
- Depreciation Consideration – Landlords cannot charge full replacement costs for items like carpet, paint, or appliances that have naturally depreciated. Deductions must reflect the remaining useful life of those items.
New Photo Documentation Requirements (Effective in 2025):
- April 1, 2025 – Landlords must provide photographs of the unit’s condition after the final inspection and after any work is completed.
- July 1, 2025 – Landlords must also provide photographs from the time of move-in to allow for a clear comparison.
These changes are intended to minimize disputes and provide tenants with better clarity around any deductions.
What are the Requirements for Security Deposits When a Tenant Moves Out?
California law requires landlords to return the security deposit within 21 days after a tenant moves out. If deductions are made, an itemized list of charges must be provided, along with receipts for any repair or cleaning costs exceeding $125.
Tenants also have the right to request a pre-move-out inspection, allowing them to address any potential issues before vacating.
Understanding these rules can help both landlords and tenants avoid conflict and maintain a fair, transparent rental process. If you have questions about security deposits, it’s always a good idea to consult California landlord-tenant laws or seek legal advice. We’re happy to answer general questions and help you feel confident about managing your rental.
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