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Security Deposit Return in California

September 27, 2026 · LawDiver Research Team

If you only remember one point about getting a security deposit back in California, remember this: The cap is 1 month's rent for most landlords; small landlords (≤2 properties / ≤4 units) may charge up to 2 months' rent under AB 12 (2024). The return deadline is 21 days after the tenant vacates, with an itemized statement of deductions and copies of receipts/estimates as required. Interest: No statewide interest requirement; some cities impose local interest or other rules. Procedure, examples, and the opinions below hang off Cal. Civ. Code § 1950.5. Bad-faith retention can support statutory damages of up to twice the deposit amount in addition to the wrongfully withheld sum (§ 1950.5(l)).

Interest and accounting

No statewide interest requirement; some cities impose local interest or other rules.

Walking through California facts

Use this walkthrough to see which California authority does the work at each step.

A residential tenant moves out of a California rental and the landlord has not returned the deposit.

Check the cap that applied when the deposit was collected: 1 month's rent for most landlords; small landlords (≤2 properties / ≤4 units) may charge up to 2 months' rent under AB 12 (2024).
Calendar the return deadline: 21 days after the tenant vacates, with an itemized statement of deductions and copies of receipts/estimates as required
Interest, if any: No statewide interest requirement; some cities impose local interest or other rules.
If the landlord keeps money without the required accounting: Bad-faith retention can support statutory damages of up to twice the deposit amount in addition to the wrongfully withheld sum (§ 1950.5(l)).

California Civil Code § 1950.5 regulates residential deposits, including the AB 12 one-month cap for most landlords. Landlords must return the balance and itemize deductions within 21 days. Tenants may sue in small claims for the deposit plus bad-faith penalties.

Penalties for wrongful withholding

Bad-faith retention can support statutory damages of up to twice the deposit amount in addition to the wrongfully withheld sum (§ 1950.5(l)).

Practical process for tenants and landlords

Document the unit with dated photos or video at move-in and move-out, keep the lease and any inspection checklist, and send a dated written demand if the deadline passes without a lawful accounting.

Case law: security deposits in California

LISA GRANBERRY Et Al., Plaintiffs and Appellants, v. ISLAY INVESTMENTS Et Al., Defendants and Appellants

LISA GRANBERRY Et Al., Plaintiffs and Appellants, v. ISLAY INVESTMENTS Et Al., Defendants and Appellants, 9 Cal. 4th 738 (1995)

…after the termination of tenancy a landlord must return the security deposit paid by a former tenant and provide a written accounting of any portion retained as compensation for unpaid rent, repairs, and cleaning. (Civ. Code, § 1950.5, subd. (f).)1 We granted review to determine whether a landlord who in good faith fails to comply with the requirements of this statute may never…

California opinions such as LISA GRANBERRY Et Al., Plaintiffs and Appellants, v. ISLAY INVESTMENTS Et Al., Defendants and Appellants are cited where security deposits is disputed. The court stated: "after the termination of tenancy a landlord must return the security deposit paid by a former tenant and provide a written accounting of any portion retained as compensation for unpaid rent, repairs, and cleaning. (Civ. Code, § 1950.5, subd. (f).)1 We granted review to determine" That is the language to brief; the rest of the decision supplies the procedural posture.

LISA GRANBERRY Et Al., Plaintiffs and Appellants, v. ISLAY INVESTMENTS Et Al., Defendants and Respondents

LISA GRANBERRY Et Al., Plaintiffs and Appellants, v. ISLAY INVESTMENTS Et Al., Defendants and Respondents, 161 Cal. App. 3d 382 (1984)

…on 1950.5 Islay had been charging its tenants a “refundable security deposit” in addition to the first month’s rent. Tenants had to remain tenants for a specified time in order to qualify for this refund. Upon the enactment of section 1950.5, Islay converted its so-called “refundable security deposit” to a “non-refundable cleaning fee” in order to avoid disputes in litigation o…

California opinions such as LISA GRANBERRY Et Al., Plaintiffs and Appellants, v. ISLAY INVESTMENTS Et Al., Defendants and Respondents are cited where security deposits is disputed. The court stated: "Islay had been charging its tenants a “refundable security deposit” in addition to the first month’s rent. Tenants had to remain tenants for a specified time in order to qualify for this refund. Upon the enactment of section 1950." That is the language to brief; the rest of the decision supplies the procedural posture.

LOUIS KORENS Et Al., Plaintiffs and Appellants, v. R. W. ZUKIN CORPORATION Et Al., Defendants and Respondents

LOUIS KORENS Et Al., Plaintiffs and Appellants, v. R. W. ZUKIN CORPORATION Et Al., Defendants and Respondents, 212 Cal. App. 3d 1054 (1989)

…oncerning the failure of respondents to pay interest on the security deposits of tenants who lease residential property. We conclude that the trial court properly granted summary judgment and, therefore, affirm. *1057 I. Facts and Procedural History From 1971 until 1986 appellant Bess Korens (Korens) rented and occupied an apartment which was managed by respondent R.W. Zukin Co…

On security deposits, LOUIS KORENS Et Al., Plaintiffs and Appellants, v. R. W. ZUKIN CORPORATION Et Al., Defendants and Respondents speaks to the California dispute in this passage: "We conclude that the trial court properly granted summary judgment and, therefore, affirm. *1057 I. Facts and Procedural History From 1971 until 1986 appellant Bess Korens (Korens) rented and occupied an apartment which was managed by respondent R.W." The surrounding opinion shows how the court applied that language to the record.

ACTION APARTMENT ASSOCIATION Et Al., Plaintiffs and Appellants, v. SANTA MONICA RENT CONTROL BOARD, Defendant and

ACTION APARTMENT ASSOCIATION Et Al., Plaintiffs and Appellants, v. SANTA MONICA RENT CONTROL BOARD, Defendant and, 114 Cal. Rptr. 2d 412 (2002)

…landlords of residential rental property to place tenants’ security deposits in interest-bearing accounts at federally insured financial institutions. Since January 1, 1999, the city has required landlords to pay tenants 3 percent interest per year on security deposits. A group of landlords filed this action, alleging that, due to market conditions, financial institutions are…

California opinions such as ACTION APARTMENT ASSOCIATION Et Al., Plaintiffs and Appellants, v. SANTA MONICA RENT CONTROL BOARD, Defendant and are cited where security deposits is disputed. The court stated: "Since January 1, 1999, the city has required landlords to pay tenants 3 percent interest per year on security deposits." That is the language to brief; the rest of the decision supplies the procedural posture.

The PEOPLE Ex Rel. ARLO SMITH, as District Attorney, Etc., Plaintiff and Respondent, v. PARKMERCED COMPANY Et Al

The PEOPLE Ex Rel. ARLO SMITH, as District Attorney, Etc., Plaintiff and Respondent, v. PARKMERCED COMPANY Et Al, 198 Cal. App. 3d 683 (1988)

….5 does not prohibit landlords from receiving nonrefundable security deposits, that section 1950.5 is unconstitutional on its face, that the trial court abused its discretion in assessing civil penalties, and that it erred in ordering a refund of securities to a tenant organization rather than to the state. We affirm. *Page 688 The Parkmerced Company owns, and Parkmerced Manage…

Practitioners open The PEOPLE Ex Rel. ARLO SMITH, as District Attorney, Etc., Plaintiff and Respondent, v. PARKMERCED COMPANY Et Al when California security deposits turns on the distinction in this sentence: ".5 does not prohibit landlords from receiving nonrefundable security deposits, that section 1950.5 is unconstitutional on its face, that the trial court abused its discretion in assessing civil penalties, and that it erred in ordering a refund of securities to a tenant organizati" Do not lift it out of the facts the court was deciding.

Key takeaways

Maximum deposit: 1 month's rent for most landlords; small landlords (≤2 properties / ≤4 units) may charge up to 2 months' rent under AB 12 (2024)
Return deadline: 21 days after the tenant vacates, with an itemized statement of deductions and copies of receipts/estimates as required
Interest: No statewide interest requirement; some cities impose local interest or other rules.
Penalties: Bad-faith retention can support statutory damages of up to twice the deposit amount in addition to the wrongfully withheld sum (§ 1950.
Primary authority: Cal. Civ. Code § 1950.5.

Deposit limits in California

1 month's rent for most landlords; small landlords (≤2 properties / ≤4 units) may charge up to 2 months' rent under AB 12 (2024)

When the deposit must be returned

21 days after the tenant vacates, with an itemized statement of deductions and copies of receipts/estimates as required

Frequently asked questions

How much can a landlord charge for a security deposit in California?