Quick Answer
For security you collect or demand on or after July 1, 2024, Cal. Civ. Code § 1950.5(c) limits the total to one month’s rent, whether the unit is furnished or unfurnished. If you are a natural person, or an LLC whose members are all natural persons, and you own no more than two rental properties with no more than four units in total, you may collect up to two months’ rent, unless the tenant is a service member. Statute text last checked October 2, 2026.
Key Takeaways
- One month is your default limit. The cap applies to all security you collect or demand on or after July 1, 2024, furnished or not (§ 1950.5(c)).
- Count every deposit-type charge together. “Security” covers any payment, fee, deposit, or charge imposed at move-in or as advance rent that secures tenant defaults, damage, or cleaning (§ 1950.5(b)). Pet deposits, key deposits, and rent held in advance as security all count.
- The small landlord exception has three tests. You are a natural person or an all-natural-person LLC, you own no more than two rental properties, and those properties hold no more than four units in total (§ 1950.5(c)(5)(A)).
- A service member tenant keeps you at one month. The exception does not apply to that tenancy (§ 1950.5(c)(5)(B)).
- Older deposits are outside the cap. The cap does not apply to security collected or demanded before July 1, 2024 (§ 1950.5(c)(6)).
1. The One-Month Cap (§ 1950.5(c))
Since July 1, 2024, California Civil Code § 1950.5(c) has capped security at one month’s rent. The cap is the same for furnished and unfurnished units. Before that date, the limit was two months’ rent for an unfurnished unit and three months’ rent for a furnished unit.
Under § 1950.5(b), “security” has a broad meaning. It includes any payment, fee, deposit, or charge imposed at the start of the tenancy or as advance rent that covers tenant defaults, damage beyond ordinary wear, or cleaning at the end of the tenancy. You add all of it together and measure the total against the cap.
2. The Small Landlord Exception (§ 1950.5(c)(5))
You may collect up to two months’ rent when both of these conditions are true:
- You are a natural person, or an LLC in which all of the members are natural persons.
- You own no more than two residential rental properties, and together they include no more than four dwelling units offered for rent.
If your tenant is a service member, the exception does not apply and the limit stays at one month (§ 1950.5(c)(5)(B)). Confirm the tenant’s status before you set the amount. The statute names natural persons and all-natural-person LLCs only, so if you hold title through a trust or an LLC with a corporate member, plan on the one-month cap and ask your attorney whether your structure qualifies.
3. Deposits Collected Before July 1, 2024
Section 1950.5(c)(6) states that the cap does not apply to security collected or demanded before July 1, 2024. You may hold an earlier two-month or three-month deposit under the rule that applied when you collected it. Measure any new tenancy, and any new demand for security on or after July 1, 2024, against the cap. Ask your attorney how a new demand combines with a deposit you already hold.
4. What Counts Toward the Cap
- Pet deposits: An added pet deposit counts toward the one-month total (two months for a qualifying small landlord).
- Key and remote deposits: These count toward the same total.
- Last month’s rent in advance: Rent held in advance to cover a future default falls within the definition of security in § 1950.5(b).
- “Nonrefundable” labels: Under § 1950.5(m), a lease may not describe any security as “nonrefundable.”
5. Summary Matrix: California Security Deposit Limits
| Situation | Maximum | Statutory Reference |
|---|---|---|
| Standard landlord | 1 month’s rent | Cal. Civ. Code § 1950.5(c) |
| Furnished unit, standard landlord | 1 month’s rent | Cal. Civ. Code § 1950.5(c) |
| Small landlord (natural person or all-natural-person LLC, up to 2 properties, up to 4 units) | Up to 2 months’ rent | Cal. Civ. Code § 1950.5(c)(5)(A) |
| Service member tenant | 1 month’s rent | Cal. Civ. Code § 1950.5(c)(5)(B) |
| Security collected or demanded before July 1, 2024 | Cap does not apply | Cal. Civ. Code § 1950.5(c)(6) |
What This Guide Does Not Cover
This guide covers residential security deposit limits under California Civil Code § 1950.5(c). It describes what the statute says as of the check date above and does not predict how a court will rule on your facts.
It does not cover:
- Commercial lease deposits or storage units.
- Holding deposits and application screening fees, which fall under Civil Code § 1950.6.
- The return deadline and itemized statement, covered in the deposit return deadline guide.
- Local deposit interest ordinances, such as those in San Francisco, Berkeley, and Los Angeles.