Tenancy: security deposits.
Summary
Reduces the maximum security deposit a landlord may collect from two months' rent to one month's rent for unfurnished residential rentals. Applies to leases executed on or after July 1, 2026, and limits the deposit to two months' rent for small landlords owning two or fewer residential rental properties.
Read full bill text on the state legislature siteSuggested Addendum
ADDENDUM, SECURITY DEPOSIT COMPLIANCE Pursuant to recent CA legislation, the security deposit collected under Section 12 of the Lease is hereby adjusted to comply with the new statutory cap. Lessor shall return any portion exceeding the new limit within 21 days of the effective date, less lawful deductions itemized in writing. Reason for update: Reduces the maximum security deposit a landlord may collect from two months' rent to one month's rent for unfurnished residential rentals. Applies to leases executed on or after July 1, 2026, and limits the deposit to two months' rent for small landlords owning two or fewer residential rental properties.
This is a draft, not legal advice. Have your attorney review before sending to a tenant. Critical-impact bills go through an editorial review pass before they appear here as approved.
Bill Timeline
Date pending
Introduced
Bill referred to committee for review.
In committee
Committee review
Subject-matter committee voted to advance.
Floor vote
Passed Chamber
Cleared the originating chamber and sent forward.
2026-04-12
Signed by Governor
Signed into law. Compliance required.
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