California Lease Agreement Laws
Lease agreements in California must respect state rules on security deposits: how much a landlord may collect, whether interest is owed, and how fast the deposit must be returned after move-out. The numbers below come from our 50-state reference, verified against statute.
California deposit and lease rules at a glance
| Deposit cap | 1 month's rent |
| Return deadline | 21 days after move-out |
| Interest on deposits | Not required by state law |
| Statute | Cal. Civ. Code § 1950.5 |
Cap exceptions
AB 12 cut the old two-month cap to one month for most rentals starting July 2024; narrow exceptions apply (e.g., some military tenancies).
Local notes
San Francisco, Los Angeles, Berkeley, West Hollywood and other rent-controlled cities require interest on deposits — check your city ordinance.
What these numbers mean for your California lease
Write the deposit clause with the cap in it: state the amount, say it equals the lawful limit, and attach the move-out timeline (21 days) so both sides can hold the other to it. A clause that quotes state law is far harder to dispute than one that just names a dollar figure. The LeaseKit generator inserts this text automatically once you pick California — the numbers come straight from the table above.
The most common California deposit disputes are deductions at move-out: cleaning charged at rates nobody agreed to, ordinary wear billed as damage, or a deadline that silently passes. Protect both sides in the lease itself — require an itemized written statement of any deduction, agree on a walk-through at move-in and move-out, and state that deposits left beyond the statutory deadline are returned in full. These three sentences resolve most conflicts before they start.
Frequently asked questions
What is the security deposit limit in California?
1 month's rent
How long does the landlord have to return the deposit in California?
21 days after move-out, less any lawful deductions itemized in writing.
Where is this rule in the law?
Cal. Civ. Code § 1950.5
Does the deposit cap apply to my lease in California?
The cap applies to residential leases and is measured against one month’s rent unless the statute says otherwise; single-family owner-occupancies and some cooperatives are exempt in several states.