California Civil Code § 1950.5 Explained: The Security Deposit Law in Plain English

What § 1950.5 Is

California Civil Code § 1950.5 is the state law that governs security deposits on residential rentals. It applies to "security for a rental agreement for residential property that is used as the dwelling of the tenant" (§ 1950.5(a)). It sets how much a landlord may collect, what the landlord may deduct, what the landlord must send you after you move out, and what happens when the landlord gets it wrong.

This guide walks through the parts of the statute a tenant actually uses, in the order they appear. Each section quotes the key words and explains them in plain English. The text is the version in effect since January 1, 2026 (amended by AB 414). For a shorter overview organized around a deposit dispute, see our California security deposit law guide.

The Statute at a Glance

(b) What Counts as a "Security Deposit"

The statute defines "security" broadly: "any payment, fee, deposit, or charge" imposed at the start of the tenancy to reimburse the landlord for processing a new tenant, or as an advance payment of rent, "used or to be used for any purpose" (§ 1950.5(b)). The name the landlord gives the charge does not decide whether it is security. The definition carves out what "Section 1950.6" provides.

The landlord may use security for four purposes only (§ 1950.5(b)(1)–(4)):

1. Unpaid rent.
2. Repairing damage "exclusive of ordinary wear and tear" caused by the tenant, a guest, or a licensee.
3. Cleaning needed to return the unit "to the same level of cleanliness it was in at the inception of the tenancy."
4. If the lease allows it, restoring, replacing, or returning personal property or appurtenances, exclusive of ordinary wear and tear.

(c) How Much a Landlord May Collect

The general rule is a cap of one month's rent, in addition to the first month's rent paid at move-in (§ 1950.5(c)(1)). There are limited exceptions:

(d) and (e) Whose Money It Is, and What the Landlord May Deduct

The landlord holds the deposit "for the tenant who is party to the lease," and the tenant's claim comes ahead of the landlord's creditors (§ 1950.5(d)).

The landlord may keep only the amounts "reasonably necessary" for the four purposes in subdivision (b) (§ 1950.5(e)(1)). Three limits follow:

• No charge for wear and tear or preexisting damage. The landlord may not claim for damage or defects that existed before the tenancy, for ordinary wear and tear or its effects, or for the cumulative effects of wear and tear over one or more tenancies (§ 1950.5(e)(2)(A)).
• Restore, not upgrade. Charges for materials and work are limited to a reasonable amount to restore the unit to its condition at the start of the tenancy, exclusive of ordinary wear and tear (§ 1950.5(e)(2)(B)).
• Professional cleaning only if needed. The landlord may not charge for professional carpet cleaning or other professional cleaning unless it is reasonably necessary to return the unit to its move-in condition (§ 1950.5(e)(2)(C)).

Our guide to normal wear and tear vs. damage applies these rules item by item.

(f) The Pre-Move-Out Inspection

Once either side gives notice to end the tenancy, the landlord must tell you in writing that you may request an initial inspection and be present for it (§ 1950.5(f)(1)). If you ask for one:

• It happens at a reasonable time, but no earlier than two weeks before the termination or end-of-lease date.
• The landlord gives at least 48 hours' written notice, unless you and the landlord both sign a written waiver.
• The landlord gives you an itemized list of the repairs or cleaning it proposes to deduct for (§ 1950.5(f)(2)).
• You may fix those items before you move out to avoid the deductions (§ 1950.5(f)(3)).

If the inspection happened and your belongings did not hide the problem, the landlord generally may not deduct for repairs or cleaning that were not on that list (§ 1950.5(f)(4)), subject to the exceptions in (f)(5) and (f)(6). The inspection rules do not apply when the tenancy ends under Code of Civil Procedure § 1161(2), (3), or (4) (§ 1950.5(f)(7)).

(g) The Landlord's Photographs

The landlord must take photographs at two points:

• At move-in. For tenancies that begin on or after July 1, 2025, immediately before or at the start of the tenancy (§ 1950.5(g)(1)).
• At move-out. Beginning April 1, 2025, within a reasonable time after you return possession, before any repairs or cleaning the landlord will deduct for, and again after that work is done (§ 1950.5(g)(2)).

When the landlord deducts for repairs or cleaning, it must provide those photographs with the itemized statement (§ 1950.5(h)(2)(D)).

(h) The 21-Day Rule and the Itemized Statement

This is the subdivision most deposit disputes turn on.

For what to do when day 21 has passed, see our guide on when the landlord misses the 21-day deadline.

(i)–(l) When the Building Is Sold

When the landlord's interest ends, "whether by sale, assignment, death, appointment of receiver, or otherwise," the landlord must either transfer the remaining deposit to the new owner and notify you, or return it to you with an accounting (§ 1950.5(i)). If the landlord does neither, the new owner is jointly and severally liable with the old one for returning the deposit (§ 1950.5(k)(1)), unless the new owner, after reasonable investigation, believed in good faith that the deposit had been transferred or returned (§ 1950.5(k)(3)). A new owner that receives the deposit takes on the landlord's obligations for it (§ 1950.5(l)).

(m) Bad-Faith Damages and the Burden of Proof

If a landlord claims or keeps the deposit in bad faith, a court may award "statutory damages of up to twice the amount of the security, in addition to actual damages" (§ 1950.5(m)). The court may award them "whenever the facts warrant that award, regardless of whether the injured party has specifically requested relief." Whether the landlord acted in bad faith is for the judge to decide.

Subdivision (m) also puts the burden on the landlord: in a lawsuit under this section, the landlord must prove "the reasonableness of the amounts claimed."

(n), (o), and (p) Three Short Rules That Matter

• No "nonrefundable" deposits. A lease may not call any security "nonrefundable" (§ 1950.5(n)).
• Small claims court. A deposit claim may be brought in small claims court if the damages claimed, actual, statutory, or both, are within its limit (§ 1950.5(o)). For individuals the limit is $12,500 (Code of Civil Procedure § 116.221).
• Proving the deposit. You can prove the deposit with "any credible evidence," including a canceled check, a receipt, a lease stating the deposit, or a statement under penalty of perjury (§ 1950.5(p)).

How to Use § 1950.5 in Your Own Dispute

Step 1: Find the dates

Write down your move-out date and the date that is 21 calendar days later. Note when you received the statement and the refund, if at all.

Step 2: Match each deduction to subdivision (b)

For each charge, ask which of the four purposes it falls under. Anything outside them, or for wear and tear or preexisting damage, is a candidate to dispute under § 1950.5(e).

Step 3: Check the paperwork against subdivision (h)

Look for receipts, invoices, and photos for repair and cleaning charges over $125. If they are missing, request them in writing within 14 days of receiving the statement (§ 1950.5(h)(5)).

Step 4: Send a demand letter

Cite the subdivisions that apply and ask for a specific amount by a specific date. Our guide on how to write a demand letter includes a sample.

Step 5: File in small claims court if needed

If the landlord does not pay, you can file an SC-100 (§ 1950.5(o)). Our SC-100 guide walks through the form.

Frequently Asked Questions

What does California law say about security deposits?

The main law is Civil Code § 1950.5. It limits how much a landlord may collect, restricts deductions to unpaid rent, damage beyond ordinary wear and tear, cleaning to move-in condition, and certain lease-authorized items, and requires an itemized statement and refund within 21 calendar days after you move out (§ 1950.5(b), (c), (h)(1)).

How much can a California landlord charge for a security deposit?

Generally one month's rent, in addition to the first month's rent (§ 1950.5(c)(1)). Certain small landlords may collect up to two months' rent, but not from a service member (§ 1950.5(c)(5)).

Can a landlord keep my deposit for normal wear and tear?

No. The landlord may not claim for ordinary wear and tear or its effects, including cumulative wear over one or more tenancies (§ 1950.5(e)(2)(A)).

Does my landlord have to send receipts?

Yes, for repair and cleaning deductions, unless they total $125 or less or you signed a valid waiver (§ 1950.5(h)(2), (h)(4)). Even then, you can request the documents within 14 days of receiving the statement (§ 1950.5(h)(5)).

Can my lease say the deposit is nonrefundable?

No. A lease may not characterize any security as "nonrefundable" (§ 1950.5(n)).

What if my landlord sold the building?

The old landlord must transfer the deposit to the new owner and notify you, or return it to you. If neither happens, the new owner can be jointly and severally liable for it, subject to a good-faith exception (§ 1950.5(i), (k)).

Can I get double my deposit back?

A court may award statutory damages of up to twice the deposit, plus actual damages, if the landlord kept it in bad faith (§ 1950.5(m)). It is not automatic. The judge decides whether there was bad faith and how much to award.

Let Accessible Justice Apply § 1950.5 to Your Case

Knowing the statute is the first step. Applying it to your dates, your itemized statement, and your photos is where cases are won. Accessible Justice reviews your deposit dispute against each part of § 1950.5, prepares your demand letter and, if needed, your SC-100. A licensed California attorney reviews your case before anything is sent.

This is general legal information, not legal advice for your specific situation. Accessible Justice's attorney reviews your case before any action is taken.

This is general legal information, not legal advice for your specific situation. Accessible Justice's attorney reviews your case before any action is taken.