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California • security deposit • 7 min read

CA AB 12 Security Deposit Cap: 1-Month Rent Limit

Jurisdiction: California
Verified: Oct 2, 2026
Verified by Rensure statutory review
Direct Statutory Answer

Under California Civil Code § 1950.5(c), security collected or demanded on or after July 1, 2024 is capped at one month's rent, furnished or unfurnished. A natural person or an LLC with only natural-person members who owns no more than two rental properties with four units in total may collect up to two months, unless the tenant is a service member.

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)).
California security deposit caps compared Four cards compare the deposit limit before July 1, 2024, for a standard landlord, for a small landlord, and for a servicemember tenant. California Security Deposit Caps Cal. Civ. Code § 1950.5(c) Before July 1, 2024 2 to 3 mo. Unfurnished: 2 months Furnished: 3 months Deposits already held may stay in place § 1950.5(c)(6) Standard landlord 1 month Furnished or not Pet and key deposits count toward the cap Never “nonrefundable” § 1950.5(c), (m) Small landlord 2 months Natural-person owner, or LLC of such owners Up to 2 properties, 4 units in total § 1950.5(c)(5)(A) Servicemember tenant 1 month Small-landlord rule does not apply Two months is barred for this tenant § 1950.5(c)(5)(B) Earlier rule Current limit Barred amount The cap reaches security collected or demanded on or after July 1, 2024.
Since July 1, 2024 the default cap is one month's rent; a small landlord may collect two months unless the tenant is a servicemember.

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:

  1. You are a natural person, or an LLC in which all of the members are natural persons.
  2. 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

SituationMaximumStatutory Reference
Standard landlord1 month’s rentCal. Civ. Code § 1950.5(c)
Furnished unit, standard landlord1 month’s rentCal. 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’ rentCal. Civ. Code § 1950.5(c)(5)(A)
Service member tenant1 month’s rentCal. Civ. Code § 1950.5(c)(5)(B)
Security collected or demanded before July 1, 2024Cap does not applyCal. 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.

§ What This Guide Does Not Cover

This guide covers residential security deposit statutory limits under California Assembly Bill 12 (Civil Code § 1950.5(c)). It does not apply to commercial lease deposits, holding deposits prior to lease signing, or leases executed prior to July 1, 2024.

Statutory guidance applies strictly to covered residential tenancies under state law. Municipal rent control ordinances or commercial leases may impose additional local requirements.

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