California Security Deposit Rules for Landlords (2026): AB 12, AB 2801 & the 21-Day Deadline
If you own a rental in Torrance, Long Beach or anywhere in California, the move-out is where most deposit disputes start. The short answer: you can generally collect no more than one month's rent as a security deposit, you must return it or send an itemized statement within 21 days after the tenant leaves, and since 2025 you must back up deductions with dated photos. This guide walks owners through the current rules under California Civil Code §1950.5, including the changes made by AB 12 and AB 2801, and a practical move-out checklist you can use on your next turnover.
Key Takeaways
One month's rent is the general cap: AB 12 (effective July 1, 2024) limits most deposits to one month's rent, with a two-month exception for qualifying small landlords.
21 days, no exceptions: Return the deposit or mail an itemized statement no later than 21 calendar days after the tenant vacates.
Photos are now required: AB 2801 requires before-and-after photos of deductible repairs and cleaning, and move-in photos for tenancies starting on or after July 1, 2025.
Receipts over $125: If deductions for repairs or cleaning exceed $125, attach receipts or invoices to the statement.
Bad faith is expensive: Courts may award up to twice the deposit in statutory damages on top of actual damages.
How Much Can You Collect? (AB 12)
AB 12 amended Civil Code §1950.5 so that, for deposits collected on or after July 1, 2024, the general limit is one month's rent whether the unit is furnished or unfurnished. Before the change, the limits were two months for unfurnished and three months for furnished units (Brownstein).
A small landlord may still collect up to two months' rent. To qualify, the landlord must be a natural person, or an LLC whose members are all natural persons, and own no more than two residential rental properties with no more than four rental units in total. This exception does not apply when the tenant is a service member. The LA County Department of Consumer and Business Affairs (DCBA) also reminds owners that "non-refundable" deposits are not allowed (LA County DCBA).
Before Move-Out: The Initial Inspection
California law gives tenants the right to a pre-move-out inspection, and the landlord must tell them about it (Civil Code §1950.5):
Within a reasonable time after either party gives notice to end the tenancy, notify the tenant in writing of the option to request an initial inspection and to be present.
If requested, the inspection takes place no earlier than two weeks before the tenancy ends.
Give at least 48 hours' written notice of the date and time, unless both parties sign a written waiver.
Afterward, give the tenant an itemized list of repairs or cleaning that could lead to deductions, so they have a chance to fix them.
AB 2801 adds an important limit: if an inspection was done and the tenant's belongings did not block your view of the condition, you generally cannot deduct for items that were not on your itemized list. Scheduling the inspection after the tenant's furniture is out makes the list more accurate and protects you.
What You Can and Cannot Deduct
Permitted deductions include unpaid rent, damage beyond ordinary wear and tear caused by the tenant or their guests, cleaning needed to return the unit to its move-in level of cleanliness, and replacement of items such as keys and garage remotes (LA County DCBA).
AB 2801 tightened two areas (AB 2801 bill text):
Repair costs for materials, supplies and labor (by a contractor, the landlord or the landlord's employee) are limited to what is needed to restore the unit to its condition at the start of the tenancy, excluding ordinary wear and tear.
Professional cleaning, including professional carpet cleaning, can be charged only when reasonably necessary to return the unit to its move-in condition, excluding ordinary wear and tear.
If deductions for repairs or cleaning total more than $125, include copies of receipts or invoices with the itemized statement (Sacramento County Public Law Library).
AB 2801 Photo Requirements
Move-outs on or after April 1, 2025: photograph the unit after the tenant returns possession but before any deductible repairs or cleaning, and again after the work is done.
Tenancies beginning on or after July 1, 2025: photograph the unit immediately before or at the start of the tenancy.
Delivery: send the photos with the itemized statement, along with a written explanation of the cost of the repairs or cleaning.
For tenants who moved in before July 1, 2025, you may not have move-in photos. Any condition report, listing photos or prior turnover records you do have become especially valuable, so keep them organized by unit.
The 21-Day Deadline and How to Deliver
No later than 21 calendar days after the tenant vacates, deliver the itemized statement and any refund by personal delivery or first-class mail to the address the tenant provides; if none is provided, mail it to the vacated unit (Civil Code §1950.5). Ask for a forwarding address in writing as part of your move-out instructions, especially for tenants relocating out of state or overseas.
Disputes and Penalties
Tenants commonly bring deposit claims in small claims court, where individuals can sue for up to $12,500 (UCLA Student Legal Services). LA County DCBA also offers a free Dispute Resolution Program for mediation. If a court finds the deposit was retained in bad faith, it may award statutory damages of up to twice the deposit in addition to actual damages, and the landlord bears the burden of proving that the amounts claimed were reasonable.
Owner Move-Out Checklist
Send written notice of the tenant's right to an initial inspection
Schedule the inspection with 48 hours' written notice and give an itemized list afterward
Request the tenant's forwarding address in writing
Photograph the unit before and after deductible repairs and cleaning
Collect receipts or invoices for every deduction over $125 in total
Mail the itemized statement, photos and refund within 21 days
Take move-in photos for the next tenant before handing over keys
Turnover is also a good time to review the rest of your compliance. If your property may be exempt from statewide rent caps, see our guide to the AB 1482 exemption notice for Torrance homes and condos, and for local rules read Property Management in Torrance, CA: 2026 Guide for Rental Owners.
Frequently Asked Questions
How much security deposit can a California landlord charge in 2026?
Under AB 12, effective July 1, 2024, the general limit is one month's rent, furnished or unfurnished. A small landlord (a natural person, or an LLC owned only by natural persons, with no more than two residential rental properties and four units total) may collect up to two months' rent, except from a service member tenant.
How long does a landlord have to return a security deposit in California?
No later than 21 calendar days after the tenant vacates. Within that window the landlord must return the full deposit or send an itemized statement of deductions with any remaining balance.
Do California landlords have to take photos of the unit?
Yes. Under AB 2801, for move-outs on or after April 1, 2025, landlords must photograph the unit before and after any repairs or cleaning they will deduct for. For tenancies beginning on or after July 1, 2025, they must also photograph the unit at move-in.
Can I charge a tenant for professional carpet cleaning?
Only if it is reasonably necessary to return the unit to its condition at the start of the tenancy, excluding ordinary wear and tear. A blanket professional cleaning fee is not allowed.
What happens if a landlord withholds a deposit in bad faith?
A court may award statutory damages of up to twice the amount of the deposit, in addition to actual damages, and a landlord who fails in bad faith to meet the itemized statement requirements loses the right to claim against the deposit.
Talk to a Local Broker About Your Next Turnover
Blue Current Estates Co. (CA DRE #02317199) is a licensed real estate brokerage and property management company based at 21515 Hawthorne Blvd, Suite 200, Torrance, serving the South Bay, Long Beach, Los Angeles, Orange County and San Diego. Broker Manabu Kagiyama (DRE #01891208) personally handles move-out inspections, deposit accounting and re-leasing for owners, in English or Japanese.
Call 310-243-6564 (LA & Orange County) or 858-353-4376 (San Diego), or email info@bluecurrentco.net
This article is general information, not legal or tax advice. Requirements change; confirm current rules with an attorney or your local agency.
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