Home/Landlords/Deposit limit check
Landlord ToolsHow much security deposit can I charge in California?
Since July 1, 2024, most California landlords can collect no more than one month’s rent as a security deposit. Some small landlords can still collect two. Answer up to four questions to see which limit applies to you.
Question 1 of up to 4
Is the resident or applicant a service member?
Service members are always limited to one month’s rent, whoever the landlord is.
Civil Code § 1950.5(c)(5)(B)
This tool explains California state law in plain English. It isn't legal advice, and local ordinances can be stricter.
How California’s deposit limit works
Assembly Bill 12 changed Civil Code section 1950.5. Starting July 1, 2024, a landlord can’t demand or receive security, however it’s labeled, worth more than one month’s rent, on top of the first month’s rent.
The exception is for small landlords. You can collect up to two months’ rent only if both of these are true:
- The landlord is an individual, a family trust, or an LLC whose members are all individuals.
- The landlord owns no more than two residential rental properties, which together have no more than four units offered for rent.
The exception never applies to a service member. They’re limited to one month’s rent no matter who the landlord is.
| Situation | Maximum deposit |
|---|---|
| Most landlords | 1 month’s rent |
| Small landlord: individual, family trust or all-individual LLC; 2 or fewer properties; 4 or fewer units | 2 months’ rent |
| Any landlord renting to a service member | 1 month’s rent |
| Corporation, REIT, or LLC with a company as a member | 1 month’s rent |
One narrow exception: the limit doesn’t stop a resident from paying six months’ rent or more in advance on a lease of six months or longer.
Source: California Civil Code section 1950.5(c), as amended by AB 12 (2023), effective July 1, 2024.
Want us to handle the rules for you?
Compliance is part of every management package. Packages start at $99.00/mo.