First Month, Last Month, Screening Fees and Other Up-Front Charges in California
Before you move in you may be asked for a deposit, the last month’s rent, a screening fee and more. Here is how California’s statutes treat each of them and what to get in writing.
Is last month’s rent security in California?
The statute defines security to include any payment imposed “as an advance payment of rent, used or to be used for any purpose” (Cal. Civ. Code 1950.5(b)). Last month’s rent held in advance therefore counts toward the limit: a one-month ceiling means a landlord cannot take a full month’s security and also hold last month’s rent. The first month’s rent paid on or before initial occupancy is outside the limit.
Can a tenant prepay several months?
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)). Outside that case, advance rent counts as security and must fit within the limit.
What about application screening fees?
A landlord may charge an application screening fee to cover the cost of obtaining information about the applicant. It may not exceed the actual out-of-pocket cost and reasonable value of time and, in no case, $30 per applicant, adjusted annually by the Consumer Price Index since 1998. A landlord may not charge a fee when it knows or should know that no unit is available (1950.6).
Can a landlord charge a fee to make alterations?
The statute 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, other than cleaning or repairing for which the previous tenant may be charged (1950.5(c)(3)).
Can any of these be nonrefundable?
Security cannot be nonrefundable (1950.5(n)). A properly charged screening fee is a separate category. If the lease calls something a nonrefundable fee that is really held as security, ask the landlord to restate it in writing, and keep a copy.
A pre-signing checklist
Before you pay: ask for the total move-in cost in writing; ask what each line is for; add every payment held as security or advance rent and compare it with the limit using the California security deposit limit calculator; get a receipt for each payment; and photograph the unit at move-in. The landlord must also take photographs at the start of tenancies that begin on or after July 1, 2025 (1950.5(g)).
How common up-front payments are treated
| Payment | Treatment | Return |
|---|---|---|
| First month’s rent | Ordinary rent paid on or before initial occupancy | Outside the limit |
| Security deposit | Counts toward the limit | Returned or itemized within 21 days |
| Last month’s rent held in advance | Advance payment of rent; counts as security | Returned or applied |
| Six months’ rent in advance | Allowed if the lease term is six months or longer | Applied to rent |
| Screening fee | Separate: actual cost, $30 per applicant adjusted by CPI | Not part of the deposit |
The table summarizes Civil Code 1950.5 and 1950.6 as quoted above, not any particular lease.
How to keep up-front payments from turning into a dispute
Get a written receipt for every payment that states the purpose, keep the lease and photographs, and note the date you vacate. The California security deposit return deadline calculator turns that date into the 21-day deadline.
Frequently asked questions
Can a California landlord ask for the last month’s rent in advance?
Only within the limit: advance rent counts as security, except for a prepayment of six months or more under a lease of six months or longer.
Is the first month’s rent counted in the limit?
No. The limit is in addition to the first month’s rent paid on or before initial occupancy.
How much can a landlord charge for a screening fee?
No more than the actual cost, and in no case more than $30 per applicant, adjusted by CPI.
Can a landlord charge a screening fee if no unit is available?
No, when it knows or should know that no unit is or will be available within a reasonable period.
Can any security be nonrefundable?
No. A lease may not characterize any security as nonrefundable.
Official sources
- Cal. Civ. Code 1950.5: security for rental agreements
- Cal. Civ. Code 1950.6: application screening fees
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.