California law (Civil Code §1950.5) sets strict rules for security deposit handling: a 21-day refund timeline, itemized deduction requirements, and special rules in rent-controlled cities. Noncompliance can trigger double/triple damages.[1]
Key takeaways
- 21 days Refund + itemized deductions due within 21 days after tenant moves out.
- Allowable deductions: unpaid rent, cleaning (to return unit to original condition), repairs (beyond normal wear), restoration of property.
- Receipts required for all work over $125; estimates are permitted if invoices not ready.
- San Francisco, LA, Oakland, and other cities may add local rules or interest requirements.
Timeline for returning deposits
Move-out
Tenant vacates and provides keys/access; landlord documents unit condition (photos).
Within 21 days
Send itemized statement and refund any remaining deposit to tenant’s forwarding address.
Allowable deductions
| Item | Allowed? | What to document |
|---|---|---|
| Unpaid rent | Yes | Ledger, lease, notices, receipts |
| Cleaning (to return to same level of cleanliness) | Yes | Move-in/move-out checklist, invoice |
| Repairs (beyond normal wear) | Yes | Before/after photos, invoices or estimates |
| Normal wear & tear | No | Document for defense, but cannot deduct |
Tip: Always include receipts for any work over $125 and send by mail with proof of mailing.
Caution: Failing to return a deposit on time can result in double/triple damages and attorney fees.[2]
Local overlays & interest
- San Francisco, Los Angeles, Oakland, and some other cities require landlords to pay annual interest on deposits.[3]
- Always check your local rent board for updates or required interest rates.