What Is the Maximum Security Deposit in California?
California limits security to one month’s rent, with a two-month allowance for small landlords that does not apply to service members. Here is how the statute reads and who qualifies.
What is the maximum security deposit in California?
Except for the cases below, a landlord “shall not demand or receive security, however denominated, in an amount or value in excess of an amount equal to one month’s rent, in addition to any rent for the first month paid on or before initial occupancy” (Cal. Civ. Code 1950.5(c)(1)). On $2,000 rent the security ceiling is $2,000, plus the first month’s rent. The California security deposit limit calculator does the comparison for your rent.
Who can charge two months?
A landlord who is a natural person, or a limited liability company in which all members are natural persons, and who owns no more than two residential rental properties that together include no more than four dwelling units offered for rent, may demand or receive up to two months’ rent (1950.5(c)(5)(A)). A natural person includes a settlor or beneficiary of a family trust of closely related people. The allowance does not apply if the prospective tenant is a service member, and a landlord may not refuse to rent to a service member because of it.
What about service members?
If a landlord charges a service member a higher than standard or advertised security because of credit history, credit score, housing history or another factor related to the tenant, it must give a written statement on or before lease signing of the amount and the reason, and the extra amount must be returned after no more than six months of residency if the tenant is not in arrears (1950.5(c)(4)). The date for returning it must be in the lease.
Can a tenant pay rent in advance beyond the limit?
The limit does not prohibit an advance payment of not less than six months’ rent if the term of the lease is six months or longer (1950.5(c)(2)). It also does not preclude a mutual agreement, at the tenant’s request and for a specified fee, for the landlord to make structural, decorative, furnishing or similar alterations (1950.5(c)(3)).
Does the limit apply to deposits paid before July 2024?
No. The subdivision does not apply to security collected or demanded by the landlord before July 1, 2024 (1950.5(c)(6)). Older tenancies were governed by the earlier limits that applied then.
What happens after the tenancy?
The landlord has 21 calendar days after the tenant vacates to send an itemized statement and return the rest, and bad faith retention can mean statutory damages of up to twice the amount of the security (1950.5(h), (m)). Use the California security deposit return deadline calculator for the date.
Worked examples of the California limit
| Monthly rent | Landlord | Asked | Result |
|---|---|---|---|
| $1,500 | Standard | $2,250 deposit | $750 over the limit |
| $1,500 | Standard | $1,500 deposit | Within the limit |
| $1,500 | Small landlord | $3,000 deposit | Within the limit |
These are illustrations of the rule, not statements about any lease.
What a tenant can do about an excessive deposit
Add every payment held as security or advance rent and compare the total with the limit for your landlord. If it is higher, ask the landlord in writing to explain, keep the lease and receipts, and talk to a licensed California attorney. At the end of the tenancy the statute puts the burden of proof on the landlord for the reasonableness of the amounts claimed or its authority to demand additional security (1950.5(m)).
A checklist for landlords
Treat one month’s rent as the ceiling unless you meet the small-landlord test in 1950.5(c)(5); check whether the tenant is a service member; do not call any security nonrefundable; take photographs at the start of tenancies that begin on or after July 1, 2025; and calendar the 21-day return date with the return deadline calculator.
Frequently asked questions
How much can a California landlord charge for a security deposit?
One month’s rent, however the payment is named, in addition to the first month’s rent; two months for a qualifying small landlord.
What is a small landlord under the California deposit law?
A natural person or an LLC of natural persons that owns no more than two residential rental properties with no more than four units in total.
Does the two-month rule apply to service members?
No. A small landlord may not charge a service member more than the standard limit.
Does the limit include a pet deposit?
Yes. Security includes any payment, fee, deposit or charge, however denominated.
Is the first month’s rent counted?
No. The limit is in addition to the first month’s rent paid on or before initial occupancy.
Official sources
A local landlord-tenant attorney can review your situation — many offer a free consultation.
This is general information, not legal advice. It is based on the cited California statutes, rules and court opinions, and every case turns on its own facts. Confirm how the law applies to your situation with a licensed California attorney.