Thanks to AB-12, renters in California can no longer be asked for a security deposit larger than one month’s rent for leases signed on or after July 1, 2024. Already existing leases will not be affected by this new law.
There is an exception in the bill for small landlords, who can charge up to the value of two months’ rent, plus the first month’s rent if the owner is a natural person or limited liability company consisting only of natural persons and they own no more than two rental dwellings that contain no more than a total of 4 units.
If you are a service member, landlords cannot charge more than one month’s rent, plus first month’s rent.
This is different from current law, which allows landlords to charge an amount equal to two months of rent for an unfurnished unit, and an amount equal to three months of rent for a furnished unit. Landlords can also charge the first month’s rent, which means that total move-in costs may be as much as three months’ worth of rent.
If you are interested in reading the bill, please click here: here.