Security Deposit Return FAQ

Under California Civil Code Section 1950.5(g), landlords must return a tenant's security deposit within 21 calendar days after the tenant vacates the rental unit and returns possession to the landlord. This 21-day period begins on the day the tenant moves out and surrenders the keys, not the lease end date. During this period, the landlord must either return the full deposit or provide a written itemized statement explaining any deductions along with the remaining balance.

The 21-day deadline is strictly enforced by California courts, and landlords who fail to comply may face significant penalties including liability for up to twice the amount of the security deposit in bad faith cases. The statement must be mailed to the forwarding address provided by the tenant, or if no address was provided, to the last known address of the tenant. Weekends and holidays count toward the 21-day calculation.

To maximize your chances of receiving your full security deposit back in California, you should take several important steps before and during your move-out process. First, provide proper written notice according to your lease terms, typically 30 days for month-to-month tenancies. Second, request a pre-move-out inspection under Civil Code 1950.5(f), which allows you to identify and repair issues before final move-out.

Third, thoroughly clean the entire unit including appliances, windows, carpets, and bathrooms to match move-in condition. Fourth, repair any damage beyond normal wear and tear that occurred during your tenancy. Fifth, document everything with dated photographs and videos showing the condition upon departure. Sixth, return all keys, garage door openers, and access devices to the landlord. Seventh, provide your forwarding address in writing for deposit return. Finally, ensure all personal belongings are removed and utilities remain on for any final inspection. Following these steps creates a strong record supporting full deposit return.

California Civil Code Section 1950.5(g) requires landlords to provide a detailed itemized statement when making any deductions from a security deposit. This statement must include several specific elements to be legally valid. First, it must list each specific repair or cleaning item being charged, not just general categories. Second, it must state the actual dollar amount deducted for each item.

Third, if repairs exceed $125, the landlord must include copies of receipts or invoices documenting the actual costs. Fourth, if the work was performed by the landlord or their employees, the statement must describe the work and include the time spent and reasonable hourly rate charged. Fifth, the statement must include the name, address, and telephone number of any person or company that performed the repair work. If repairs cannot be completed within the 21-day period, the landlord may provide a good faith estimate and must provide final documentation within 14 days after completion. The statement must be sent to the tenant's provided forwarding address.

A California landlord can only retain an entire security deposit if legitimate deductions equal or exceed the deposit amount, and all deductions must comply with Civil Code 1950.5. Landlords may only deduct for four specific purposes: unpaid rent, cleaning costs to restore the unit to its move-in condition, repair of damages beyond normal wear and tear caused by the tenant, and restoration of furniture or other items as specified in the lease.

The landlord cannot keep the deposit for normal wear and tear, pre-existing damage documented before move-in, or improvements made to the property. If a landlord claims deductions exceeding the deposit amount, they cannot pursue the tenant for additional amounts without proper documentation. Tenants should always request and review the itemized statement carefully, as many landlords improperly deduct for items they legally cannot. If you believe deductions are improper, you have the right to dispute them through small claims court or by sending a demand letter.

When a California landlord fails to return your security deposit or provide an itemized statement within the mandatory 21-day period under Civil Code 1950.5, you have several legal remedies available. First, the landlord may lose the right to make any deductions from your deposit, meaning you could be entitled to the full amount regardless of any legitimate claims they might have had.

Second, if the landlord acted in bad faith, you may be entitled to statutory damages of up to twice the security deposit amount in addition to actual damages. Third, you can file a claim in small claims court for amounts up to $12,500, where you do not need an attorney. Before filing suit, you should send a formal demand letter via certified mail requesting immediate return of your deposit. Document the postmark on any correspondence you receive from the landlord to establish whether they met the deadline. Courts generally view the 21-day requirement strictly, and landlords bear the burden of proving timely compliance and good faith if disputed.

California Civil Code Section 1950.5 strictly limits the maximum security deposit a landlord can collect based on whether the rental unit is furnished or unfurnished. For unfurnished residential units, landlords cannot charge more than two months' rent as a security deposit. For furnished residential units, the maximum is three months' rent.

Effective July 1, 2024, under AB 12, the limit for most residential rentals is reduced to one month's rent, with certain exceptions for small landlords who own no more than two residential properties with no more than four units total. Active military members have additional protections under both state and federal law that may further limit deposit amounts. The deposit limit includes all refundable deposits combined, including last month's rent if collected as a deposit. Non-refundable fees, such as cleaning fees or pet fees designated as non-refundable, are generally prohibited in California for residential tenancies. Any deposit collected in excess of these limits can be recovered by the tenant.

While tenants often ask to apply their security deposit toward final rent, California law does not give tenants the automatic right to do so without landlord agreement. The security deposit and rent are legally distinct, and the deposit is held specifically to cover potential damages, cleaning, and unpaid rent after move-out under Civil Code 1950.5.

If a tenant unilaterally withholds final rent expecting the deposit to cover it, the landlord could legally pursue eviction for non-payment and deduct the unpaid rent from the deposit, potentially leaving the tenant liable for any damages exceeding the remaining balance. However, some landlords may agree to this arrangement in writing, especially when the tenant has been responsible and the unit is in good condition. If you wish to use your deposit as last month's rent, request written landlord approval in advance. Without such agreement, pay your final rent as required and wait for proper deposit return procedures to recover your deposit after move-out.

A partial security deposit return occurs when a California landlord returns less than the full deposit amount because they have made legitimate deductions permitted under Civil Code 1950.5. Landlords may partially retain deposits for four specific reasons: unpaid rent owed through the end of tenancy, cleaning required to restore the unit to move-in condition, repairs for damages exceeding normal wear and tear, and replacing furnishings damaged beyond normal use if applicable.

When making partial returns, landlords must provide an itemized statement listing each deduction with specific descriptions and amounts. For repairs costing more than $125, copies of receipts or invoices must be attached. The remaining balance must be returned with the statement within 21 days. Tenants receiving partial returns should carefully review each deduction to ensure it is legally permitted, properly documented, and accurately calculated. Common improper partial deductions include charges for normal wear like minor wall scuffs, carpet wear in traffic areas, or faded paint, which are the landlord's responsibility.

Under California Civil Code Section 1950.5(g), landlords must mail the security deposit refund and itemized statement to the forwarding address provided by the tenant. Tenants should always provide their new address in writing before or immediately after moving out, and retain a copy for their records. If the tenant fails to provide a forwarding address, the landlord should mail the deposit to the tenant's last known address, which would typically be the rental unit address.

Providing your forwarding address in writing creates documentation that you fulfilled your obligation and establishes where the landlord should send the deposit. Consider using certified mail or email with delivery confirmation when providing your address. If you move multiple times, update the landlord in writing. Some landlords include a forwarding address form in move-out paperwork, which you should complete carefully. Keeping records of all communications regarding your forwarding address protects your interests if disputes arise about whether the deposit was properly returned.

California law permits landlords to return security deposits via electronic funds transfer, but only if the tenant agrees to this method. Civil Code 1950.5 does not mandate any specific return method, giving landlords flexibility to use checks, money orders, or electronic transfers with tenant consent. Many modern property management companies offer direct deposit or payment app transfers for convenience.

If you prefer electronic transfer, request this in writing and provide your banking information or preferred payment platform details. However, landlords cannot require electronic transfer and must provide a traditional check if the tenant requests it. When accepting electronic transfers, ensure you still receive the required itemized statement separately if any deductions were made. The 21-day deadline applies regardless of payment method, so electronic transfer does not extend the landlord's timeframe. Document your agreement to electronic payment and confirm receipt of funds within the legal deadline. If any portion is disputed, having bank records of the electronic transfer amount provides clear evidence.

California AB 12, effective July 1, 2024, significantly changed security deposit limits in the state. The new law caps security deposits at one month's rent for most residential rentals, regardless of whether the unit is furnished or unfurnished. Previously, landlords could charge up to two months' rent for unfurnished units and three months for furnished units.

Important Exceptions to AB 12:

• Small landlords who own no more than two residential rental properties with a combined total of no more than four dwelling units can still charge up to two months' rent
• Service members retain existing protections under the Servicemembers Civil Relief Act
• The law applies to new tenancies beginning on or after July 1, 2024
• Landlords are not required to refund portions of deposits collected under old rules before that date

If a landlord charged you more than one month's rent after July 1, 2024 and they don't qualify for an exception, you may be entitled to recover the excess amount plus potential statutory damages.

California landlords cannot deduct from your security deposit for normal wear and tear, which typically includes minor scuffs on walls, faded paint, worn carpet in high-traffic areas, and small nail holes from hanging pictures. However, landlords can deduct for damage beyond normal wear and tear that you caused.

Paint Deductions:

• Cannot charge for: Faded paint, minor marks from normal furniture placement, small picture-hanging holes
• Can charge for: Large holes, excessive stains, unauthorized paint colors, heavy smoking damage
• Courts consider age of paint - expected lifespan is 2-3 years, so charging full repainting costs for paint already 3+ years old may be improper

Carpet Deductions:

• Cannot charge for: Carpet worn thin through normal walking, furniture indentations
• Can charge for: Burns, large stains, pet damage, tears
• Courts apply useful life depreciation - if carpet expected to last 8-10 years was already 7 years old when you moved in, landlord likely cannot charge much for replacement even if damaged

Always document conditions with photos at move-in and move-out to contest improper deductions.

Yes, California landlords can pursue additional amounts beyond your security deposit if they claim legitimate damages exceed the deposit, but they must follow proper procedures and provide documentation.

Documentation Requirements:

• Landlord must provide the required itemized statement within 21 days under Civil Code 1950.5(g)
• For repair claims exceeding $125, they must include receipts or invoices
• If they send a bill without this documentation, challenge the validity of the charges

Collection Process and Your Rights:

• Landlords typically must sue you in court or attempt direct collection before using collection agencies
• If sent to collections without a court judgment, you have rights under the FDCPA and California's Rosenthal Act
• Respond to any collection notice in writing within 30 days to preserve your dispute rights
• Request debt validation - collectors must prove the debt is valid and owed

If the charges are improper or undocumented, dispute the debt and consider filing your own small claims case to recover your deposit plus statutory penalties if the landlord acted in bad faith.

A security deposit demand letter should be professional, specific, and cite relevant California law to maximize your chances of recovery.

Essential Elements to Include:

• Your full name and former rental address
• The date you vacated the unit
• The amount of security deposit paid (include copy of receipt or lease)
• The date landlord was required to return deposit (21 days after move-out)
• Statement that you have not received your deposit or received insufficient return
• Specific demand for the amount owed
• Deadline for response (typically 10-14 days)
• Statement that you will pursue legal action including small claims court
• Mention of potential bad faith penalties of up to twice the deposit under Civil Code 1950.5(l)

Send the letter via certified mail with return receipt requested to create proof of delivery. Keep copies of everything. If you don't receive a satisfactory response, file in small claims court where you can claim up to $12,500 without an attorney.

Use our free security deposit demand letter generator to create a customized, legally-compliant letter citing California Civil Code 1950.5.

Winning a California small claims court case for security deposit recovery requires organized evidence demonstrating the landlord's violation of Civil Code 1950.5.

Evidence to Gather and Bring:

• Lease agreement showing the deposit amount paid
• Proof of deposit payment (canceled check, receipt, bank statement)
• Move-in inspection report documenting pre-existing conditions
• Dated photographs or videos of the unit at move-in and move-out
• Written notice to vacate with proof of delivery
• All communication with the landlord about the deposit
• Forwarding address you provided in writing
• Landlord's itemized statement (if received) to dispute improper deductions
• Calendar showing the 21-day deadline was missed (if applicable)

Proving Bad Faith (for up to 2x damages):

• Document patterns of problematic behavior
• Evidence landlord rented the unit immediately without making claimed repairs
• Proof that claimed damages existed before your tenancy

Organize everything chronologically in a folder with an index. Practice explaining your timeline clearly - small claims judges appreciate concise, factual presentations. The landlord bears the burden of proving any deductions were proper under Civil Code 1950.5(b).