Appropriate Usage of Security Deposits

Security Deposit Rights for Tenants 

Security deposits are an amount of money that a tenant pays when starting to pay rent that can be used to pay for any damages the renter causes to the property. The standard practice is to charge the equivalent of one months’ rent, but under California law, landlords may charge tenants two months’ rent if the unit is unfurnished and three months’ rent if the unit is furnished. Landlords must return security deposits with a statement of deductions within 21 days after the renter has returned their keys and left the premises. 

What can a landlord deduct from a security deposit? 

• The cost of fixing any damages to the property caused by the tenant.

• The cost of cleaning the unit after the tenant moves out, but only to make the unit as clean as it was when the tenant arrived. 

• Unpaid rent or utilities. 

• Other breaches of the lease.

What can’t a landlord deduct from a security deposit?

• The cost of fixing ordinary wear and tear such as gently worn carpets, loose door handles, or fading wall paint.

• The cost of fixing conditions that existed before the tenant moved into the unit

Examples of landlord misuse

• Making the security deposit more money than the legal amount. 

• Characterizing the security deposit as “nonrefundable.”

• Not explaining what the deductions are being used for. 

• Holding the security deposit for more than 21 days after the tenant has moved out of the unit.