California Tenants: Rights to Their Security Deposits

A California beach apartment often requires a large security deposit.

California law establishes the conditions under which a tenant can receive a security deposit back from a landlord. Since a security deposit can be several thousand dollars on a large apartment or house in California, security deposit disputes often involve court cases in this state. The landlord does have the right to keep the entire security deposit, or a portion of it, in certain cases. However, the landlord has an obligation in California to clearly explain the expenses that the security deposit will cover to the tenant.

Furnished Apartments

Some apartments in California include additional furnishings, so the tenant pays additional rent and receives the convenience of not having to purchase beds, tables, dressers and other apartment furniture. The landlord checks these items for any damage, and can charge the tenant for furniture replacement or repair costs in this state.

Repair Bill

A landlord may decide either to personally repair damage to the apartment, or hire employees or contractors to repair the damage. When the landlord repairs damage, California law requires the landlord to quote a reasonable rate for the work when charging the tenant. If the landlord hires other workers to fix the damage, the landlord must provide a copy of the bill to the tenant, which includes itemization of materials, hours worked and employee hourly rates.

Deposit Size

California has regulations which set a maximum amount that the landlord can require as a security deposit. For an unfurnished apartment, the landlord can require two months' rent, and for an apartment which includes furniture, the landlord may demand three months' rent as a deposit.

For example, if a landlord charges $4,000 a month to rent a furnished house, the landlord can require the tenants to provide a deposit of $12,000 before moving in, and an additional $4,000 for the first month's rent. The California Department of Consumer Affairs states that the maximum damage that a small claims court may award is $7,500, so the tenant may wish to hire a lawyer and sue in superior court if the landlord keeps a large deposit.

Refund Time Limit

A time limit begins once the tenant officially moves out of the residence. When the landlord plans to return the full deposit, the landlord has three weeks to refund the money to the previous tenant. The landlord does not have to return the deposit in three weeks if the landlord intends to keep all or part of the deposit, but in this situation California law requires the landlord to send an itemized statement of charges to the previous tenant.

Landlord Notification Rules

The landlord can lose the right to keep the security deposit in California even if the tenant actually did damage the walls or furniture in the apartment. If the landlord does not send a statement to the tenant within three weeks, the landlord has to refund the security deposit. A landlord does not have to send a statement to the tenant if the total damage and cleaning costs total less than $126, according to the California Department of Consumer Affairs security deposit web page.

References

• California Department of Consumer Affairs: Refunds of Security Deposits
• Judicial Council of California: Small Claims
• California Department of Consumer Affairs: When You Have Decided to Rent