• calendar_month September 8, 2024
• folder RE News

As of July 1st, 2024, new leasing laws regarding security deposits in California aim to provide greater protections for tenants and more clarity for landlords. One key change is the cap on security deposits. Previously, landlords could charge up to two months' rent for unfurnished units and three months' rent for furnished units. Now, security deposits are limited to a maximum of one month’s rent for all units, regardless of whether they are furnished or unfurnished.

Additionally, landlords are now required to provide tenants with a detailed itemization of any deductions from the security deposit, along with receipts, within 21 days of the tenant vacating the property. This itemization must include clear explanations for each charge, offering greater transparency and reducing disputes.

Landlords must also comply with stricter timelines when returning security deposits. If no deductions are made, they must return the full deposit within 14 days, faster than the previous 21-day window.

These changes are designed to strike a balance, ensuring tenants are not overburdened by excessive upfront costs, while also ensuring landlords have clear guidelines for handling deposits. Both landlords and tenants should stay informed to avoid potential legal issues.

To learn more about the new laws, give me a call (310) 488-2592.