Starting Monday, Landlords Can’t Charge More Than 1 Month’s Rent for Security Deposit

On Monday Assemblymember Matt Haney’s Assembly Bill 12 banning landlords from charging exorbitant security deposits will go into effect in California.

The landmark tenant protection bill stops the practice of California landlords charging two times and (in some cases three times) the monthly rent as a security deposit. California now joins 11 other states in the country to limit security deposits to only one month’s rent.

“Massive security deposits can create insurmountable barriers to housing affordability and accessibility for millions of Californians,” said Haney, a San Francisco Democrat who chairs the California Legislature’s Renters’ Caucus.

“Despite skyrocketing rents, laws on ensuring affordable security deposits haven’t changed substantially since the 1970s. The result is that landlords lose out on good tenants and tenants stay in homes that are too crowded, unsafe, or far from work or school,” Haney said.

“This new law is a simple common sense change that will have an enormous impact on housing affordability for families in California, while also balancing a landlord’s need to protect themselves against potential liability.”

53% of California renters indicate they can afford their rent but they’re unable to get an apartment because they simply can’t afford to pay the two month’s rent as a security deposit. This pushes many families, including those with individuals making minimum wage, to either forgo necessities such as food and utilities or acquire more debt to be approved for housing.

“In California’s high-cost rental market, expensive security deposits are often imposed on immigrants and people of color, effectively limiting access to safe and affordable housing. By capping high-security deposits, AB 12 advances a measure of equity and empowers immigrants and people of color across the state, who contribute daily to making our diverse state thrive,” said Masih Fouladi, the executive director of California Immigrant Policy Center.

AB 12 does not impact small landlords. Mom-and-pop landlords who own only 2 properties with a total of no more than 4 units are exempt.

It also does not have any effect on potential liability — landlords will still be able to seek damages from tenants who are responsible for harm to the property that exceeds the amount of the security deposit.