California Security Deposit Law: Timelines and Lawful Deductions

California sets both a ceiling on what a landlord may collect as a security deposit and a hard deadline for returning it. Both live in Civil Code section 1950.5.

How much a landlord can collect

Under section 1950.5(c)(1), a landlord generally may not demand a security deposit greater than one month’s rent, in addition to first month’s rent paid on or before initial occupancy. That single limit applies whether the unit is furnished or unfurnished.

There is one exception. Section 1950.5(c)(5) allows a small landlord — a natural person, or an LLC whose members are all natural persons, owning no more than two residential properties totalling no more than four units — to collect up to two months’ rent plus first month’s rent. That exception does not apply where the tenant is a service member.

The 21-day deadline

Section 1950.5(h)(1) requires the landlord to act no later than 21 calendar days after the tenant has vacated. Within that window the landlord must return any remaining deposit and furnish an itemized statement showing what was deducted and why. Twenty-one calendar days, not business days.

What can lawfully be deducted

Section 1950.5(b) limits deductions to four purposes:

• Unpaid rent the tenant defaulted on
• Repair of damage caused by the tenant or the tenant’s guests, excluding ordinary wear and tear
• Cleaning necessary to return the unit to the level of cleanliness it had at the start of the tenancy
• Restoring or replacing personal property, where the rental agreement allows it

What cannot be deducted

Section 1950.5(e) is explicit that a landlord may not charge for conditions that pre-existed the tenancy, for ordinary wear and tear, or for cleaning beyond returning the unit to its original level of cleanliness. Worn carpet, faded paint and normal use are the landlord’s cost, not the tenant’s.

If the deadline passes

If 21 days pass with no itemized statement and no refund, the deposit has not simply been forfeited — the statute creates obligations the tenant can enforce. Small claims court is the usual venue, and the current limit for an individual is well above a typical deposit. Keep your move-out photos, the itemized statement if one arrived, and proof of the date you handed back the keys.

This page describes what the cited California statute says. It is not legal advice.