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Bill AB2330
Effective January 1, 2003
Tenants have the right to request that landlords conduct an inspection of rental units up to two weeks before tenants vacate. The purpose of this request is to allow tenants time to make minor repairs, as might be permitted by the rental agreement, and to specify the cleaning necessary for tenants to get back as much of their security deposit as possible. This law also increases the damages that may be awarded for a landlord's bad faith failure to return a security deposit from $600 to double the amount of the deposit.
In California, all security deposits held by the landlord in residential property are refundable, if the tenant leaves the premises clean and undamaged, minus normal wear and tear. This tenant right is guaranteed in California Civil Code Section 1950.5.
No lease or rental agreement may call any deposit "non-refundable" (Civil Code Section 1950.5). Nor may a landlord escape this rule that all security deposits are refundable by demanding a "cleaning", "security" or "pet" fee instead of a deposit.
The total amount of all deposits required by the landlord for security, cleaning, last month's rent, etc. may not exceed an amount equal to two month's rent, if the place is unfurnished. If the premises are furnished, the limit is an amount equal to three months' rent.
Civil Code Section 1950.5 says that the deposit may be used by the landlord "in such amounts as may be reasonably necessary" to do the following four things only:
To repair defaults in payment of rent;
To repair damage to the place caused by the tenant, besides normal wear and tear;
To clean the place, if necessary;
If the rental agreement allows it, to pay for the tenant's failure to restore or replace personal property.
Last Month's Rent Most landlords require some payment for "last month's rent." The legal effect of such a requirement depends largely upon the exact language used in the lease or rental agreement. If your rental agreement states specifically that you have already paid the last month's rent, then you don't have to pay the rent again. When you notify the landlord that you are moving, just remind her/him that you already paid for that month.
Holding Deposit A tenant often will request that a landlord "hold" an apartment or house for her/him until some future time. Unless there is a specific limit on what part of the monies are a holding deposit, chances are the tenant has effectively given up her/his rights to the return of any part of the monies. If a tenant decides not to take the unit, the sooner the tenant asks for the return of the monies, the better off they will be when their case is heard before a judge.
Interest on Deposit In California, except for a few cities such as Berkeley, Santa Monica, and San Francisco, the landlord is not required to pay interest on a tenant's security deposit. In the cities of Oakland and Alameda, landlords are not required to pay interest on security deposits.
Increasing the Security Deposit
1) If you have a fixed-term lease, the landlord may not raise the security deposit during that year unless the lease allows this.
2) If the security deposit and other fees already add up to twice the monthly rent, the security deposit may not be raised.
3) If the security deposit does not add up to twice the monthly rent, then the landlord may increase the amount of the security deposit by giving no less than 30-days notice in writing.
New Ownership of the Unit If the landlord sells the building, s/he is required to do one of two things-- return the deposit to the tenant, or give it to the new owner. The law requires the new owner to make sure that s/he gets all security deposits from the previous landlord. Whether s/he does so or not, s/he becomes responsible for returning the security deposit to the tenant at the end of the tenancy, just as if s/he were the previous landlord. Also, the new owner cannot require the tenant to replace any security deposit kept by the old landlord.
Click here for information regarding the return of the security deposit
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