California Security Deposit Recovery Suite
Generate a demand letter AND a ready-to-file Small Claims complaint. Upload your lease — AI drafts everything.
21 days — Landlord deadline to return deposit
2x penalty — Bad faith withholding (CC 1950.5)
$12,500 — Small Claims Court limit
How This Works
Two documents, maximum leverage
A demand letter alone is a suggestion. A demand letter with a draft Small Claims complaint attached says "I'm filing this next week." 85% of security deposit disputes settle after the landlord sees both documents. This generator creates both from a single form — and AI personalizes them using your actual lease and communications.
How to use: Go to the Generator tab. Upload your lease + photos, fill in the details (or let AI extract them), then download both your demand letter and Small Claims complaint. Mail the demand letter first — give 14 days to respond — then file the lawsuit.
California Security Deposit Law — Key Rules
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21-day deadline (CC 1950.5(g)): Landlord must return the deposit or provide an itemized statement of deductions within 21 calendar days after the tenant surrenders possession. No extensions, no excuses.
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Itemized statement required (CC 1950.5(g)(2)): If any amount is withheld, the landlord must provide a written, itemized statement showing each deduction with supporting documentation (receipts, estimates).
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Bad faith penalty — up to 2x deposit (CC 1950.5(l)): If the landlord retains the deposit in bad faith, the tenant can recover up to twice the deposit amount PLUS actual damages. Bad faith includes no statement, bogus deductions, or ignoring the 21-day deadline.
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Deposit limits (CC 1950.5(a) / AB 12): For leases signed after July 1, 2024: max 1 month's rent. Older leases: max 2 months (unfurnished) or 3 months (furnished). If your landlord collected more, you may have an additional claim.
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No deductions for wear & tear (CC 1950.5(e)): Normal wear and tear is NOT deductible. This includes minor wall scuffs, worn carpet from foot traffic, faded paint, small nail holes, and minor appliance wear. Only damage beyond normal use is deductible.
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Small Claims Court (CCP 116.221): You can sue for up to $12,500. Filing fees are $30-$75. Lawyers are generally not allowed — it's designed for self-representation. Typical timeline: 30-70 days from filing to hearing.
Time limit: You have 4 years to file a security deposit lawsuit under CCP 337(a) (breach of written agreement) or 2 years under CCP 339 (breach of oral agreement). Don't wait — evidence gets harder to present over time.
Evidence Checklist
Gather these before using the generator. The stronger your evidence, the stronger your documents.
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Lease/rental agreement — Shows deposit amount, terms, landlord obligations. Upload to AI for automatic extraction.
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Move-in & move-out photos — Date-stamped photos of the unit's condition at both times. Critical for disputing damage claims.
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Move-in/move-out inspection checklist — If your landlord provided one (required under CC 1950.5(f) if requested), this is your best evidence.
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Text messages & emails with landlord — Any communications about the deposit, deductions, move-out condition, or repair requests.
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Itemized statement from landlord — If received, note the date (was it within 21 days?) and whether deductions are legitimate.
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Proof of deposit payment — Bank records, canceled check, or receipt showing the deposit amount you paid.
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Forwarding address proof — Did you provide a forwarding address? The landlord must send the statement there.
Need this sent on attorney letterhead?
$575 flat fee — includes demand letter on attorney letterhead, draft lawsuit, and FedEx certified delivery. 85% of cases settle without court.
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Allowable vs. Prohibited Deductions
California law is specific about what landlords can and cannot deduct from your security deposit. Use this table to identify improper deductions.
| Deduction Type | Allowed? | Legal Basis |
|---|---|---|
| Unpaid rent | Yes | CC 1950.5(b)(1) |
| Damage beyond normal wear and tear | Yes | CC 1950.5(b)(2) |
| Cleaning to restore move-in condition | Yes (if needed) | CC 1950.5(b)(3) |
| Restoring/replacing personal property per lease | Yes | CC 1950.5(b)(4) |
| Minor wall scuffs and nail holes | No — wear & tear | CC 1950.5(e) |
| Worn carpet from normal foot traffic | No — wear & tear | CC 1950.5(e) |
| Faded or sun-bleached paint | No — wear & tear | CC 1950.5(e) |
| Full repainting (if tenant lived there 2+ years) | No — useful life expired | Case law |
| Full carpet replacement (if carpet 8+ years old) | No — useful life expired | Case law / IRS depreciation |
| Professional cleaning (if unit left reasonably clean) | No — if comparable to move-in | CC 1950.5(b)(3) |
| Appliance wear from normal use | No — wear & tear | CC 1950.5(e) |
| Pre-existing damage (documented at move-in) | No — not tenant's fault | CC 1950.5(f) |
| Upgrades or improvements beyond original condition | No — landlord cannot upgrade at tenant's expense | CC 1950.5(b) |
Useful Life Doctrine
Even for legitimate damage, landlords can only charge for the remaining useful life of the item. If carpet has a 10-year useful life and you damaged it in year 8, the landlord can only charge for 2/10 of replacement cost — not the full amount. The same applies to paint (2-3 year useful life), appliances, and fixtures.
Tip: If the landlord's itemized statement includes deductions for any of the "Not Allowed" items above, note the specific amounts. The generator will cite the exact code sections in your demand letter and complaint.
Frequently Asked Questions
How long does my landlord have to return my security deposit?
Under California Civil Code 1950.5(g), your landlord has 21 calendar days after you surrender possession to either return the full deposit or provide an itemized statement of deductions with supporting documentation. "Surrender possession" means you've returned the keys and fully moved out. The 21 days is a hard deadline — there are no extensions for holidays, weekends, or any other reason.
What is the "bad faith" penalty and how do I get it?
Under CC 1950.5(l), if the landlord retains the deposit in "bad faith," you can recover up to twice the deposit amount in statutory damages, plus your actual damages. Bad faith includes: failing to return the deposit or provide a statement within 21 days, making deductions for normal wear and tear, claiming false damages, or retaining the deposit without any itemization. You request the bad faith penalty in your Small Claims complaint.
Can I file in Small Claims Court even if the deposit is small?
Yes. There's no minimum amount for Small Claims Court. Even if your deposit was $500, you can file. Remember that with the 2x bad faith penalty, a $500 deposit claim becomes a $1,500 claim. Filing fees are $30 for claims under $1,500, $50 for claims $1,500-$5,000, and $75 for claims $5,001-$12,500.
What if my landlord only returned part of my deposit?
You can sue for the improperly withheld portion. If the landlord returned some of the deposit but made improper deductions (e.g., normal wear and tear, pre-existing damage, or excessive charges), your claim is for the difference between what was withheld and what should have been withheld. You may still be entitled to the 2x bad faith penalty if any deductions were made in bad faith.
Do I need a lawyer for Small Claims Court?
No, and in fact attorneys generally cannot appear in Small Claims Court (CCP 116.530). The court is specifically designed for self-represented parties. The judge will ask you questions and review your evidence. Our generator creates a properly formatted complaint that gives you a professional appearance without attorney fees.
What if my landlord is a property management company?
You can sue both the property management company AND the property owner. Under CC 1950.5, the obligation to return the deposit rests with both the landlord and their agent. Name both as defendants in your Small Claims complaint. The generator lets you specify whether your landlord is an individual or a company.
Should I send the demand letter before filing the lawsuit?
Yes. While not legally required, a demand letter serves two important purposes: (1) it gives the landlord a final chance to return the deposit without court involvement, and (2) it demonstrates to the judge that you made a good-faith effort to resolve the dispute. Many landlords will pay after receiving a demand letter — especially when it includes a draft complaint showing you're ready to file.
How do I serve the demand letter?
Send it via USPS Certified Mail with Return Receipt Requested. This gives you proof of delivery. You can also send a copy via email or regular mail. Keep the tracking number and green return receipt card — you'll need these as evidence if you file the lawsuit. The generator includes specific mailing instructions.
What if my lease has an arbitration clause?
Most California residential leases do not have enforceable arbitration clauses for security deposit disputes. Even if your lease includes one, Small Claims Court is generally still available. Under CCP 116.220, the right to file in Small Claims Court cannot be waived by contract for amounts within the court's jurisdiction. File the demand letter and Small Claims complaint as normal.
What's the maximum security deposit my landlord could have charged?
For leases signed after July 1, 2024 (AB 12): maximum 1 month's rent, regardless of furnished/unfurnished. For older leases: maximum 2 months' rent (unfurnished) or 3 months' rent (furnished). If your landlord charged more than the legal maximum, you may have an additional claim for the excess amount.
Skip the DIY — Let an attorney handle it
$575 flat fee includes demand letter on attorney letterhead, draft lawsuit, and certified delivery. Most landlords pay within 14 days.
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