When my cousin moved to Sacramento last year, her landlord asked for first month, last month, and a two month security deposit. Four months of rent before she got the keys. She paid it, because she needed the apartment. She should not have. Since July 2024, California caps the security deposit at one month of rent for almost every landlord in the state, and what she paid was not close to legal.
What AB 12 changed
Before Assembly Bill 12, California allowed two months for unfurnished units and three for furnished ones. AB 12 cut that to one month of rent across the board, effective July 1, 2024. The rule lives in Civil Code section 1950.5, and it is one of the strictest deposit caps in the country. For comparison, Nevada allows three months and Texas sets no cap at all.
A $2,400 a month apartment means a maximum deposit of $2,400. Not $4,800. Not $2,400 plus a separate $1,000 pet deposit, because California counts the total security held against the cap regardless of what the landlord calls it.
The small landlord exception, and why most landlords do not qualify
There is an exception that lets qualifying small landlords charge up to two months. I mention it because landlords mention it, usually optimistically. The conditions are narrow: the landlord must be a natural person or a natural person owned LLC, and must own no more than two properties totaling no more than four dwelling units. Miss any prong and the exception fails.
In practice, most landlords my cousin dealt with were property management companies or larger owners. None of them qualified. If your landlord claims the exception, ask which prong they meet and get it in writing. A landlord who cannot explain their own exception probably does not have one.
The 21 day return clock
California gives landlords 21 calendar days after moveout to return the deposit or send an itemized statement of deductions with receipts or invoices. This is not a suggestion. Landlords who miss it or withhold in bad faith can owe up to twice the deposit in damages, and courts in California have not been shy about awarding them.
Do two things at moveout. Photograph everything, and send your forwarding address in writing. Email counts. The 21 days run from when you vacate, and having the address on record removes the most common excuse for delay.
What landlords can and cannot deduct
Unpaid rent, damage beyond normal wear and tear, cleaning to return the unit to the condition it was in at move in, and restoring alterations you made. That is the list. Faded paint, worn carpet from foot traffic, and minor scuffs are normal wear and tear, and deducting for them is the single most common violation I hear about.
If you get an itemized statement that lists $400 for "general cleaning" on a unit you left broom clean, that is worth challenging. Ask for the invoice. California requires landlords to provide documentation for deductions over a threshold, and vague line items without receipts do not survive scrutiny.
How California compares
California sits at the strict end of the national spectrum. New York and Massachusetts also cap at one month. Maryland joined the one month club in October 2024. Georgia adopted its first ever cap, two months, in July 2024. Meanwhile about twenty states still have no statutory cap at all. If you are moving interstate, do not assume the rules travel with you.
Check any state
Pick your state and enter your rent to see the max lawful deposit and the return deadline.
Open the Security Deposit Laws ToolRelated reading: What Happens When a Landlord Misses the Security Deposit Deadline.
General information, not legal advice. Based on Cal. Civil Code section 1950.5 as amended by AB 12 (effective July 1, 2024). Confirm current law before acting.