At Paraply, we know that security deposits are one of the most common sources of tension between renters and landlords. Questions like “How much can my landlord charge?”, “What counts as damage versus normal wear and tear?”, or “What can I do if my deposit isn’t returned?” come up often in our housing FAQ.

In this article, we’ll break down the basics of California’s security deposit rules, highlight recent legal updates, and walk through a real-world example of a renter who had to fight for his deposit back.

The Basics: What Even Is a Security Deposit?

Think of a security deposit as a landlord’s safety net. It’s money you pay before moving in, and it’s meant to cover things like unpaid rent, damage that goes beyond everyday use, or the cost of deep cleaning if the place isn’t left in move-in condition (CA Courts Self-Help Guide, Tenant Rights).

A common sticking point is the phrase “normal wear and tear.” That doesn’t mean any little scratch is fair game for deductions. It refers to the natural aging of a unit—like worn carpet, scuffed paint, or a slightly loose cabinet hinge. Things like pet urine damage, broken windows, or large holes in the wall go beyond “wear and tear” and can be charged against the deposit (Tenant Knowledge).

How Much Can a Landlord Ask For?

Here’s where recent law comes into play. Under California Civil Code § 1950.5 and AB 12 (effective July 1, 2024), most landlords can now only ask for one month’s rent as a security deposit—whether the place is furnished or unfurnished.

There’s one exception: so-called “small landlords.” If your landlord owns no more than two rental properties totaling four units, and the property is held individually (not by a corporation), they’re still allowed to charge up to two months’ rent for an unfurnished place, or three months’ rent if it’s furnished. Everyone else has to stick to the one-month cap.

What Can That Money Actually Be Used For?

Your landlord isn’t free to spend your deposit however they like. The law limits its use to a few things:

• Covering unpaid rent.
  
  

• Fixing damage you caused (but not “normal wear and tear”).
  
  

• Paying for cleaning to restore the unit to the condition it was in when you moved in.
  
  

• Replacing or restoring furnishings, but only if that was part of your lease agreement (CA Courts Self-Help Guide).
  
  

  If your landlord tries to deduct for repainting the whole apartment after three years, or replacing 15-year-old carpet, you probably have grounds to push back.

The 21-Day Rule

California law is clear: once you move out, your landlord has 21 calendar days to return your deposit or give you an itemized statement explaining deductions. If they keep more than about $125 for repairs or cleaning, they must also provide receipts or invoices to show what was actually spent (CA Courts Self-Help Guide).

If repairs aren’t finished within the 21 days, landlords can send an estimate, but then must follow up with receipts within 14 days after the work is completed.

A Useful Tool: The Pre-Move-Out Inspection

Here’s a tip many renters don’t know: in California, you have the right to request a pre-move-out inspection during your last two weeks of tenancy. This gives you a preview of what the landlord might deduct and lets you fix problems yourself—like patching nail holes or doing a deep clean—before they take money from your deposit (LegalClarity).

What If the Landlord Doesn’t Play Fair?

Sometimes landlords ignore the rules—maybe they keep your deposit without explanation, or send back a vague letter with no receipts. In that case, you have options.

Step one is usually to send a demand letter—a short, written notice asking for your deposit back and citing the law. If that doesn’t work, the next step is small claims court. In California, you can sue for up to $12,500, and you don’t need a lawyer. If the landlord acted in bad faith (for example, refusing to return the deposit without justification), the court can even order them to pay you up to double the deposit amount as a penalty (CA Courts Self-Help Guide).

A Case Study: Carlos’s Story

Let’s look at a real-world example.

Carlos, a renter in San Jose, paid a $2,500 security deposit when he moved into a one-bedroom apartment. His lease ended on July 1, 2025. He left the place clean and in good condition, but weeks later, he still hadn’t received his deposit—or even a notice from his landlord.

Here’s what Carlos did:

• He checked the law and realized that since his landlord owned multiple properties, they were only allowed to charge one month’s rent as a deposit under the new AB 12 rules.
  
  

• He sent a formal letter demanding the full return of his deposit within the 21-day legal deadline.
  
  

• He gathered documentation—photos from move-in and move-out, copies of his lease, and bank statements showing the deposit payment.
  
  

• When the landlord ignored him, Carlos filed in small claims court.
  
  

Because the landlord had held his deposit without explanation, the judge ordered the return of the $2,500 plus an additional penalty for bad faith.

The takeaway? Carlos knew his rights, documented everything, and followed through with the steps the law provides.

Key Things to Remember

• For most landlords in California, the maximum deposit is one month’s rent.
  
  

• Deposits can’t be used for routine wear and tear.
  
  

• Your landlord has 21 days to return the money or explain deductions.
  
  

• If they don’t comply, you can escalate—first with a demand letter, then with small claims court.
  
  

• Always keep records: photos, leases, communications, and receipts.

Conclusion

Security deposits don’t have to be a mystery—or a fight. California law under Civil Code § 1950.5 is designed to protect renters, especially with the updated limits in AB 12. If you know what landlords can and can’t do, and you keep good records, you’ll be in a strong position to get your deposit back.

And if you ever find yourself in Carlos’s shoes, remember: you have legal tools to make sure your money doesn’t just disappear.

Bonus: Sample Security Deposit Demand Letter

If your landlord hasn’t returned your deposit within 21 days, you can send a written demand like this:

 [Your Name]
[Your Address]
[Date]

Dear [Landlord’s Name],

I moved out of [Rental Address] on [Date]. Under California Civil Code § 1950.5, you were required to return my security deposit or provide an itemized statement of deductions within 21 days. As of today, I have not received either.

Please return my full deposit of $[Amount] immediately. If I do not receive payment within 7 days, I am prepared to take legal action in small claims court, where I may also be entitled to up to twice the amount of the deposit for bad-faith withholding.

Sincerely,
[Your Signature]

👉 This kind of letter is often enough to push a landlord to act, since it shows you know your rights and are ready to escalate.