California security deposit laws for landlords: the one month cap, 21 days and photo proof

How much deposit can a California landlord ask for?

The California Attorney General's tenant alert on security deposits explains the change. Until July 1, 2024 the limit was two months' rent for an unfurnished unit and three for a furnished one. After July 1, 2024 the limit is one month's rent, whether or not the unit is furnished. The exception is a small landlord: a natural person, or an LLC whose members are all natural persons, who owns no more than two residential rental properties with no more than four units for rent in all. That landlord may take two months. Service members may not be required to pay more than one month.

The word "security" in section 1950.5 is broad. It covers any payment, fee, deposit or charge imposed at the start of the tenancy to reimburse the landlord for costs of processing a new tenant, or as an advance payment of rent, however it is named. A "cleaning deposit" or "key deposit" is therefore part of the cap.

Example a made-up apartment rents for $2,400 a month. A corporate owner or an owner with five rental units may hold at most $2,400. A person who owns one duplex and one single-family home, three units in all, through an LLC whose only member is that person, may hold up to $4,800.

What may the deposit pay for?

Section 1950.5(b) and (e) allow only amounts reasonably necessary for four things: unpaid rent, repair of damage caused by the tenant or a guest (not ordinary wear and tear), cleaning needed to return the unit to the cleanliness it had at the start, and restoring or replacing personal property such as furniture, if the rental agreement allows it. The landlord may not claim damage that existed before the tenancy, ordinary wear and tear, or the cumulative effects of wear and tear over any number of tenancies. See normal wear and tear vs. damage.

What is the initial inspection?

California gives the tenant a chance to fix problems before they cost money. Within a reasonable time after either side gives notice to end the tenancy, or before the lease ends, you must tell the tenant in writing of the option to ask for an initial inspection and the right to be present (section 1950.5(f)). If the tenant asks, you inspect no earlier than two weeks before the end date, with at least 48 hours of written notice unless both sign a waiver. After the inspection you give an itemized statement of the repairs or cleaning that may lead to deductions, which must include the text of the four permitted purposes. The tenant may fix those items before leaving. A deficiency that comes up later, or that could not be seen because of the tenant's belongings, can still be charged.

What are the 21 days, the $125 line and the photo rule?

Under section 1950.5(g), no later than 21 calendar days after the tenant vacates, you send by personal delivery or first-class mail an itemized statement of the basis for and amount of any deposit received and what happened to it, and return the rest. If you or your employee did the work, the statement describes it with the time spent and a reasonable hourly rate. If someone else did it, you include a copy of the bill, invoice or receipt, and for materials a copy of the receipt or vendor price list. When the work cannot be finished in 21 days, or the paperwork has not arrived, you may deduct a good faith estimate and finish the statement within 14 calendar days of completing the work or receiving the documents.

You need not attach documents when deductions for repairs and cleaning together do not exceed $125, unless the tenant asks for documentation within 14 days of getting the statement, in which case you comply within 14 days. A tenant can also waive the documents, but only in a signed waiver given after a termination notice or within 60 days of a fixed term ending.

A 2024 law, AB 2801 (Statutes of 2024, chapter 280), adds photographs. The Senate Judiciary Committee's analysis describes the rule this way: for tenancies that begin on or after July 1, 2025, the landlord takes photographs of the unit immediately before or at the start of the tenancy; beginning April 1, 2025, the landlord takes photographs after possession is returned and before repairs or cleanings for which a deduction will be made, and again after they are done; and the landlord sends the photographs with the itemized statement, by mail, email, flash drive or a link. A landlord who fails to comply in bad faith may not claim any part of the deposit. The analysis also notes that a landlord may not charge for professional cleaning or contractor work unless it is reasonably necessary to restore the unit to its prior condition, less ordinary wear and tear.

Example a made-up tenant leaves on June 10 and the landlord's deadline is July 1, 21 days later. The landlord deducts $90 for cleaning and $200 to patch and paint a wall the tenant damaged, $290 in all. That is over $125, so the July 1 mailing includes the painter's invoice, the cleaning receipt, and the before and after photographs. Had the two items come to $110, no documents would have been required unless the tenant asked.

What does bad faith cost?

Section 1950.5(l) says bad faith claim or retention of the security may subject the landlord to statutory damages of up to twice the amount of the security, in addition to actual damages. In any action the landlord has the burden of proof as to the reasonableness of the amounts claimed. The California Attorney General's alert gives the same summary. Local ordinances can add to this; the alert notes that some cities require interest on deposits, so check your city.

What if I sell the property?

When your interest ends, section 1950.5(h) gives you a reasonable time to either transfer the remaining security to your successor and notify the tenant of the transfer, any claims against the deposit, the amount and the successor's name, address and phone, or return it to the tenant with an accounting. Before a voluntary transfer you hand the buyer a written statement of the security, the itemization of deductions and which option you chose (subdivision (i)). A buyer who gets less than the full deposit is jointly liable with you unless it made a reasonable good faith inquiry (subdivision (j)).

How DoorKeeping handles it

With DoorKeeping, each tenant's deposit sits on its own line in that property's books, and move-in and move-out photos, invoices and signed leases can be filed with the property's documents, which is the packet the 21 day statement needs. Deposits stay in your own bank account: DoorKeeping never holds your money and sends a payment only when you approve it. It gives no legal advice.

Sources

1. California Attorney General, Know Your Rights as a California Tenant: Security Deposits, read Oct 30, 2026
2. California Civil Code section 1950.5 (court-hosted copy of the statute; the one month cap and AB 2801 changes are read in the other sources here), read Oct 30, 2026
3. Senate Judiciary Committee analysis of AB 2801 (Friedman), security deposits, 2024, read Oct 30, 2026
4. California Courts Self Help Guide, security deposits, read Oct 30, 2026

Questions

What is the maximum security deposit in California?

One month's rent since July 1, 2024, or two months for a small landlord (a natural person or all-natural-person LLC with no more than two rental properties and four units in all). Civil Code 1950.5(c).

How many days does a California landlord have to return a deposit?

21 calendar days after the tenant vacates, with an itemized statement and the remaining balance.

Do I need receipts for deposit deductions in California?

Yes when repairs and cleaning together exceed $125, and the tenant can ask for them even under that amount within 14 days of the statement.

What is the penalty for wrongly keeping a California deposit?

Bad faith retention can bring up to twice the deposit in statutory damages plus actual damages, and the landlord has the burden of proving the amounts were reasonable.