Skip to main content
Back to Legislation Watch
California AB 12 Enacted high impact

Tenancy: security deposits.

Security Deposit / Last action 2026-04-12 / AI draft, awaiting editorial review

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 site

Suggested 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.

Need every active lease updated for this?

Sign in and Rentari.ai will scan your portfolio, identify which leases sit in California, and queue this addendum for your one-click approval, no copy/paste.

Sign in to queue this addendum