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FACTSHEETS - Security Deposits
Basic Rules Governing Security Deposits
Landlords are allowed to charge a security deposit and almost all landlords do. The security deposit may be labeled "last month's rent", "security deposit", or "cleaning deposit", or may combine the last month's rent plus a specific amount for "security" in the event of damage to the rental unit. Landlords may also try to charge a separate finders or locating fee. The law usually considers these fees part of the security deposit.No matter what the security deposit is called, the law limits the amount that a landlord can charge. The total amount charged for any type of security deposit can not be more than the amount of two months' rent for an unfurnished rental unit or three months' rent for a furnished unit. The landlord can require you to pay this amount in addition to your first month's rent.
In California, it is unlawful for a security deposit to be "non-refundable." However, the law allows landlords to retain part or all of your deposit under certain circumstances, such as if you move out and still owe rent, or if you leave the rental unit in a damaged condition.
Can a Security Deposit be Increased?
Whether a landlord can increase the amount of the required security deposit after you move in depends on the terms of the rental agreement. If you have a lease, the security deposit cannot be increased unless increases are permitted by the lease. In a periodic rental agreement (for example, a month-to-month agreement), the landlord can increase the security deposit unless this is prohibited by the agreement. The landlord must give proper notice before increasing the deposit (for example, 30 days' notice in a month-to-month agreement).However, if the deposits you have paid already add up to twice the monthly rent (for an unfurnished unit) or three times the monthly rent (for a furnished unit), then your landlord can't increase the security deposit. Local rent control ordinances may also limit increases in security deposits.
The landlord must give you written notice of the increase in the security deposit, and must follow the same procedure for notifying you of this increase as those required for notifying you of a rent increase.
Disclaimer of Liability:
The information contained in this material is for the sole purpose of providing general information only, and must not be construed as legal advice, or take the place of competent legal counsel. Do not rely on these materials without consulting an attorney concerning your situation. The dissemination of this information does not create an attorney-client relationship and does not seek to represent you based upon your visit or review of this information.
Every effort has been made to ensure the information contained in the material is current. However, the law does change and the general information contained within may become dated. You should seek the advice of legal counsel for specific situations and advice to the "then existing" status of the law.