Renters Rejoice At Reduced Security Deposits

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Good news for renters and bad news for landlords in California. Assembly Bill 12 goes into law on July 1, 2024, prohibiting landlords from collecting a deposit from renters that is more than one month’s worth of rent as a security deposit. Landlords may still collect the first month’s rent, a security deposit equal to that amount, but no longer can a landlord collect the last month’s rent at this time.

Two exceptions to this law permit a landlord to collect two times the rent for the entire security deposit.

  1. If the landlord is a natural person or an LLC where all members are natural persons.
  2. The landlord owns no more than two residential properties that contain no more than four dwelling units offered for rent.For assistance navigating these changes as a landlord, please reach out. We are happy to examine your situation and determine what options you have to protect yourself against these changes and others you face as a landlord in California.
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