Beginning in July 2024, a new legislation in California will prohibit landlords from requesting security deposits equal to more than one month's rent.
Security deposits are defined by California law as sums of money, fees, or charges that a landlord receives from a renter at the time of move-in and retains in order to pay for any possible damages, cleaning expenses, or unpaid rent in the event that the tenant breaches the terms of the lease. Renters have sometimes seen security deposit requirements as high as three months' rent, however the typical range for this kind of deposit is one to two months' rent.
However, Assembly Bill 12 would prevent landlords in California from requiring security deposits more than one month's rent beginning of July 1, 2024. Enacted on October 11, 2023, the measure limits the amount of security deposit that landlords may charge tenants moving in after July 1, 2024. It goes into effect the following month. Governor Gavin Newsom authorized it.
The implementation of AB 12 will not impact current leasing agreements. There are some further exclusions that also hold true, such as landlords who possess no more than two residential properties that together have no more than four rental units. The new rule would allow these "smaller" landlords to demand up to two months' rent, "in addition to any rent for the first month paid on or before initial occupancy."
The bill, which would take effect on July 1, 2024, states that a landlord cannot require or accept security for a rental agreement for residential property that is worth more than one month's rent, regardless of whether the property is furnished or unfurnished, in addition to any rent that was paid for the first month on or before the initial occupancy date.
Furthermore, if the landlord is a natural person or a limited liability corporation with all of its members being natural persons, and if the landlord owns no more than two residential rental properties that together include no more than four dwelling units offered for rent, then the bill would forbid the landlord from demanding or receiving security for a rental agreement for residential property in an amount or value exceeding two months' rent, in addition to any rent for the first month.
Security deposits are defined by California law as sums of money, fees, or charges that a landlord receives from a renter at the time of move-in and retains in order to pay for any possible damages, cleaning expenses, or unpaid rent in the event that the tenant breaches the terms of the lease. Renters have sometimes seen security deposit requirements as high as three months' rent, however the typical range for this kind of deposit is one to two months' rent.
However, Assembly Bill 12 would prevent landlords in California from requiring security deposits more than one month's rent beginning of July 1, 2024. Enacted on October 11, 2023, the measure limits the amount of security deposit that landlords may charge tenants moving in after July 1, 2024. It goes into effect the following month. Governor Gavin Newsom authorized it.
The implementation of AB 12 will not impact current leasing agreements. There are some further exclusions that also hold true, such as landlords who possess no more than two residential properties that together have no more than four rental units. The new rule would allow these "smaller" landlords to demand up to two months' rent, "in addition to any rent for the first month paid on or before initial occupancy."
The bill, which would take effect on July 1, 2024, states that a landlord cannot require or accept security for a rental agreement for residential property that is worth more than one month's rent, regardless of whether the property is furnished or unfurnished, in addition to any rent that was paid for the first month on or before the initial occupancy date.
Furthermore, if the landlord is a natural person or a limited liability corporation with all of its members being natural persons, and if the landlord owns no more than two residential rental properties that together include no more than four dwelling units offered for rent, then the bill would forbid the landlord from demanding or receiving security for a rental agreement for residential property in an amount or value exceeding two months' rent, in addition to any rent for the first month.
