The High Stakes of Security Deposits

Security deposit disputes are the #1 source of landlord-tenant litigation in California. The rules are strict, the penalties steep, and landlords who don't follow them precisely lose—even when their deductions were legitimate.

California Security Deposit Law

Civil Code §1950.5 governs all aspects of security deposits.

Maximum Amounts

Note: AB 12 (effective 7/1/2024) reduced maximums to 1 month for most landlords.

Permissible Deductions

You may deduct ONLY for:

Unpaid rent

Cleaning (to return unit to move-in condition)

Repair of damages **beyond normal wear and tear**

Restoration if tenant breaches (with proper documentation)

The 21-Day Rule

Within **21 calendar days** of move-out, you must:

Return the full deposit, OR

Provide itemized statement of deductions with remaining balance

If repairs aren't complete within 21 days:

Provide good faith estimate

Send actual costs within 14 days of completion

What Counts as "Normal Wear and Tear"?

Documentation Best Practices

At Move-In

Detailed condition checklist (signed by tenant)

Photographs/video of every room

Note existing damage

Provide copy to tenant within 21 days

During Tenancy

Document any reported damage

Keep records of repairs made

Conduct periodic inspections (with notice)

At Move-Out

Walk-through inspection with tenant (if they request)

Comprehensive photos/video

Compare to move-in condition

The Itemized Statement

Your statement must include:

Each deduction described in detail

Amount of each deduction

Receipts for repairs over $126

Copies of invoices

Name/contact of repair persons

Bad Example:

"Cleaning - $500"

Good Example:

"Professional cleaning required due to grease buildup on kitchen surfaces, soap scum in bathroom, and pet hair throughout carpet. ABC Cleaning, Invoice #1234 attached - $350"

Penalties for Violations

If you wrongfully withhold deposits in **bad faith**:

Return of wrongfully withheld amount

Up to 2x the deposit amount in statutory damages

Attorney fees

Common Landlord Mistakes

**Missing the 21-day deadline** - No exceptions, no excuses

**Deducting for normal wear** - Repainting after 5 years isn't damage

**No documentation** - "He said/she said" loses

**Charging for upgrades** - New carpet must account for existing depreciation

**Pre-move-out deductions** - Wait until tenant vacates

I've testified in dozens of security deposit cases. Landlords with thorough documentation win; those without lose—regardless of what actually happened. The time to build your case is at move-in, not move-out.

Property Type	Maximum Deposit
Unfurnished	2 months' rent
Furnished	3 months' rent

Normal Wear and Tear	Damage (Deductible)
Faded paint	Holes in walls
Worn carpet in traffic areas	Stains, burns, pet damage
Minor scuffs on floors	Gouges, water damage
Loose door handles	Broken doors/locks
Dirty windows	Broken glass

Security Deposit Disputes: A California Landlord's Guide to Avoiding Claims