Civil Code 1950.5 Compliance | Legitimate Deductions | Damage Claims | Unpaid Rent Collection
California law limits the maximum security deposit you can collect:
| Property Type | Maximum Deposit |
|---|---|
| Unfurnished residential unit | One month's rent (as of July 1, 2024 for most landlords) |
| Furnished residential unit | One month's rent (as of July 1, 2024 for most landlords) |
| Small landlord exception (2 properties, 4 units max) | Two months' rent unfurnished, three months' furnished (until July 1, 2027) |
As a landlord, you may lawfully deduct for the following:
You must return the deposit (or provide itemization) within 21 calendar days after the tenant vacates:
California law requires you to offer the tenant an initial inspection:
Understanding this distinction is critical to making defensible deductions:
| Normal Wear and Tear (NOT Deductible) | Tenant Damage (Deductible) |
|---|---|
| Faded paint from sunlight exposure over time | Unauthorized paint colors, crayon marks, large holes in walls |
| Worn carpet in traffic areas after years of use | Stains, burns, pet damage, tears, or rips in carpet |
| Small nail holes from hanging pictures normally | Numerous large holes, anchor damage, or wall damage from mounted items |
| Minor floor scuffs from furniture | Deep gouges, scratches, water damage from neglect |
| Worn toilet seats, minor fixture wear | Broken fixtures, cracked porcelain from misuse |
| Dust, minor cleaning needs between tenants | Excessive filth, grease buildup, mold from neglect, pest infestations |
| Faded or yellowed blinds from age | Broken slats, bent blinds, missing blinds |
When tenants leave personal property behind, California has specific procedures:
If a former tenant challenges your deductions, you need to be prepared:
Before drafting your demand letter, ensure you have complete documentation:
| Component | Calculation Method |
|---|---|
| Unpaid Rent | All rent owed through move-out date, including partial months |
| Cleaning Costs | Actual cost to restore cleanliness to move-in condition |
| Repair Costs | Documented repair expenses for tenant-caused damage (prorated for useful life) |
| Other Lease Charges | Authorized fees per lease (late fees, reletting fees, etc.) |
| Less: Security Deposit | Subtract the full deposit amount held |
| Balance Due | Total costs minus deposit = amount owed by tenant |
Essential Components:
| Component | What to Include |
|---|---|
| Header | Your name/company, address, phone, email; date; tenant's last known address |
| Subject Line | "Demand for Payment of Balance Due" or "Notice of Amount Owed After Move-Out" |
| Tenancy Details | Property address, tenancy dates, security deposit amount, move-out date |
| Amount Breakdown | Itemized list of all charges with documentation references |
| Deposit Application | Show security deposit applied and remaining balance |
| Total Demand | Clear statement of total amount owed |
| Payment Deadline | Typically 10-15 days from receipt |
| Payment Instructions | How and where to send payment |
| Consequences | Small claims filing, collections, credit reporting (if applicable) |
How to File:
What to Bring to Court:
For claims exceeding $12,500, you must file in civil court:
Tenants sometimes file suit claiming improper deductions or bad faith. To defend:
If you win a judgment but the tenant does not pay voluntarily:
As an alternative to court action, you can turn the debt over to a collections agency:
If you cannot locate the former tenant:
I assist landlords with security deposit disputes, unpaid rent collection, damage claims, and small claims court preparation. Whether you need help drafting demand letters, defending against tenant claims, or pursuing judgment collection, I can help you recover what you are owed while ensuring compliance with California law.
Book a call to discuss your situation. I will review the facts, assess your legal position, and recommend the most effective strategy for recovering the amounts owed to you.
Email: owner@terms.law
Whether you need to collect unpaid rent, recover damage costs beyond the security deposit, or defend against a tenant's claim, I provide experienced guidance through every step of the process. From demand letters to small claims representation, I help landlords protect their investments and enforce their legal rights.
Schedule a ConsultationCalifornia Civil Code Section 1950.5 governs security deposits for residential rentals. While this law provides strong protections for tenants, it also protects landlords who follow proper procedures when making legitimate deductions for unpaid rent, cleaning, and tenant-caused damage beyond normal wear and tear.