California cut its deposit cap from two months' rent to one for nearly all rentals when AB 12 took effect in July 2024 — one of the biggest tenant-protection changes in the country. Pair that with a fast 21-day return deadline and the strict itemization rules of Cal. Civ. Code § 1950.5, and California tenants hold unusually strong cards.
| Max deposit | 1 month's rent AB 12 cut the old two-month cap to one month for most rentals starting July 2024; narrow exceptions apply (e.g., some military tenancies). |
|---|---|
| Return deadline | 21 days after you give up possession |
| Interest on deposit | No statewide rule No statewide interest requirement — but several cities do require it. Local exception: San Francisco, Los Angeles, Berkeley, West Hollywood and other rent-controlled cities require interest on deposits — check your city ordinance. Interest aside, the return deadline above is what actually moves your money. |
| Statute | Cal. Civ. Code § 1950.5 |
In California, the ceiling is 1 month's rent. AB 12 cut the old two-month cap to one month for most rentals starting July 2024; narrow exceptions apply (e.g., some military tenancies). Whatever the cap, the deposit remains your money: the cap limits the request, and the sections below limit what can happen to it afterward.
California landlords have 21 days from when you give up possession — normally the day you return all keys — to either refund the deposit or send the written itemization that state law requires. Mark the date on your calendar the day you move; a deadline that passes without refund or statement is what converts an awkward wait into a legal claim.
No statewide interest requirement — but several cities do require it. Local exception: San Francisco, Los Angeles, Berkeley, West Hollywood and other rent-controlled cities require interest on deposits — check your city ordinance. Interest aside, the return deadline above is what actually moves your money.
Like nearly every state, California lets landlords charge for real damage and unpaid costs — but not for normal wear and tear. Faded paint, worn carpet in a walkway, and small nail holes from picture hangers are the landlord's cost of doing business; broken fixtures, uncleaned appliances, and unpaid rent are chargeable. When deductions are taken, California requires them in writing — so photograph the unit at move-out and keep the timestamped set until the money arrives. Every line item can then be checked against how the unit actually looked, which is how inflated deductions get beaten.
Bad-faith withholding can cost the landlord up to twice the deposit. The route is almost always the same: a written demand letter citing the deadline and Cal. Civ. Code § 1950.5, then small claims court in the county where the unit sits. Filings are cheap, lawyers aren't required, and landlords who ignored two letters usually settle the week a court date appears.
Three moves protect a California deposit: (1) compare the deposit you're being asked for against the cap above before you sign; (2) photograph the unit at move-in and again at move-out — documentation settles most disputes before they start (our interactive checklist walks you through it); (3) the day you return keys, write the deadline on your calendar and send your forwarding address in writing. If that date passes in silence, the demand letter template takes about ten minutes, and small claims court is the next stop.
Cap check, your personal deadline date, and the interest your deposit earned — in about twenty seconds.
This page summarizes Cal. Civ. Code § 1950.5 as last reviewed October 5, 2026. Laws and locally announced rates change — confirm current figures with the California housing authority or attorney general's consumer site before relying on them.