The Inland Empire, the Riverside, San Bernardino, and Ontario metro area, is where many Southern California renters go for more space at a lower price than the coast. About 495,400 of the region’s 1,450,300 occupied households rent, roughly 34 percent, and the median gross rent is $1,846 a month, according to the U.S. Census Bureau’s 2020 to 2024 American Community Survey (Homzora Inland Empire dataset, Table B25003; Table B25064). The median renter household earns $62,167 a year (Table B25119), so a deposit equal to one month’s rent is more than a third of a typical renter’s monthly gross income.
A large share of Inland Empire rentals are single family homes owned by individuals, which makes one part of California’s deposit law especially relevant here: the small landlord exception to the one month cap. This guide explains that exception and every other rule in Civil Code Section 1950.5 as it stands in 2026.
Homzora is a housing research publisher, not a law firm. This article explains California law in plain English and is not legal advice for your situation.
The deposit cap and the small landlord exception
The general rule
For deposits collected on or after July 1, 2024, a California landlord may not collect security of more than one month’s rent, furnished or unfurnished (Cal. Civ. Code § 1950.5(c); San Francisco Rent Board summary of AB 12).
Who qualifies for two months
A landlord may collect up to two months’ rent only if all of the following are true (§ 1950.5(c)(5)):
- The landlord is a natural person, or a limited liability company whose members are all natural persons. A settlor or beneficiary of a qualifying family trust counts as a natural person.
- The landlord owns no more than two residential rental properties.
- Those properties include no more than four dwelling units offered for rent in total.
- The prospective tenant is not a servicemember.
Large rental home companies and landlords with bigger portfolios do not qualify. If you are renting a house from a professional rental company in Riverside or San Bernardino County, the one month cap applies.
Questions to ask before you pay
- Is the landlord an individual, a family trust, an LLC owned by individuals, or a company?
- How many rental properties and units does the landlord own?
- Is any part of the move in money labeled as a fee rather than a deposit? California defines security to include any payment, fee, deposit, or charge used to secure your obligations, and leases may not call security nonrefundable (§ 1950.5(b), (n)).
What may be deducted at move out
The California Courts Self Help Guide lists the allowed deductions: unpaid rent, cleaning to return the unit to its move in level of cleanliness, repairs of damage beyond normal wear and tear caused by the tenant or guests, and restoring or replacing furniture or items included in the rental if damaged beyond normal wear and tear (California Courts Self Help, Security Deposits).
Single family homes: yards, pools, and appliances
House rentals raise questions that apartments rarely do. Read your lease for who is responsible for landscaping, pool service, and appliance maintenance. If the lease makes you responsible and the yard is neglected, the landlord may claim costs; if the landlord kept those duties, ordinary aging of the yard or equipment is not your cost. Photograph the yard, garage, and appliances at move in and move out just as you would the interior.
The move out timeline
- Request the initial inspection. After you give notice, the landlord must tell you in writing of your right to one (Courts Self Help). It occurs no earlier than two weeks before the tenancy ends (§ 1950.5(f)).
- Fix what the inspection identified before you leave.
- Know the landlord’s photo duty. Since April 1, 2025, landlords must photograph the unit after you return possession and before deductible repairs or cleaning, and again afterward; for tenancies beginning on or after July 1, 2025, also at move in (§ 1950.5(g)).
- Count 21 calendar days. The landlord must send an itemized statement and return the balance within that time (§ 1950.5(h)). Receipts or invoices are required unless repair and cleaning deductions total $125 or less (Courts Self Help).
- Expect an electronic refund if you paid electronically. Since January 1, 2026, a landlord that received rent or the deposit electronically generally must return the balance electronically to an account you designate in writing, unless you agree in writing to another method (§ 1950.5(h)).
When the house is sold
Inland Empire rental homes change hands frequently. When a landlord’s interest ends, the statute lets the landlord transfer the remaining security to the successor in interest after lawful deductions, with written notice requirements (§ 1950.5(i), (j)). Keep your own proof of the deposit amount you paid, and ask the new owner to confirm it in writing.
Disputes and penalties
An individual may sue for up to $12,500 in California small claims court (California Courts Self Help). If the court finds bad faith retention, it may award statutory damages of up to twice the amount of the security, plus actual damages (§ 1950.5(m)). LawHelpCA.org lists free legal aid organizations serving Riverside and San Bernardino counties (LawHelpCA.org).
A worked example
Suppose you rent a house at the metro median of $1,846 from a company that owns hundreds of homes. The maximum deposit is $1,846. You move out on May 31, having paid rent electronically. The landlord’s itemized statement and refund are due by June 21. If it deducts $600 for carpet replacement in a home you rented for five years and provides no invoices, you can challenge the deduction as normal wear and tear, cite the documentation requirement, and, if the landlord refuses in bad faith, seek up to twice the deposit in statutory damages in small claims court.
A sample demand letter
If the 21 day deadline passes without a refund or a proper itemized statement, or you dispute a deduction, a written demand is the next step:
Date: 2026. To: [landlord]. Re: Security deposit for [address, unit]. I vacated on 2026. Under California Civil Code Section 1950.5, you were required to return my deposit or provide an itemized statement within 21 calendar days, with receipts or invoices for repair and cleaning charges unless those charges total $125 or less. [I have not received either.] [I dispute the following deductions: (list), because (reasons), as shown in the attached photos.] Please return [amount] by 2026. If the deposit is retained in bad faith, Section 1950.5 allows statutory damages of up to twice the amount of the security in addition to actual damages. Sincerely, [name].
Keep a copy and proof of delivery. If the matter goes to small claims court, bring the letter, the lease, your photos, and any itemized statement you received (California Courts Self Help).
Build your evidence file
- The signed lease and any addenda.
- Proof of the deposit amount you paid and how you paid it, which matters for the electronic refund rule (§ 1950.5(h)).
- Your own dated move in and move out photos and video.
- Copies of the landlord’s photos, which you can request, since landlords must now take them (§ 1950.5(g)).
- The initial inspection notice and any list of proposed deductions.
- All repair requests and responses during the tenancy.
Mistakes Inland Empire renters make
- Skipping the initial inspection. It is the one chance to learn what the landlord plans to charge while you can still fix it (§ 1950.5(f)).
- Not giving a forwarding address or refund account. The landlord needs to know where to send the money.
- Accepting a lump sum “cleaning fee” without receipts. Documentation is required unless repair and cleaning deductions total $125 or less (California Courts Self Help).
- Waiting too long to act. Send your demand promptly after day 21 while records are fresh.
Frequently asked questions
Does the Inland Empire have local deposit rules?
The deposit rules discussed here come from statewide law in Section 1950.5 (§ 1950.5). If you rent in a city with its own rental ordinances, check with that city’s housing office.
Do I earn interest on my deposit?
Section 1950.5 does not impose a general statewide interest requirement (§ 1950.5).
Can my landlord keep my deposit for the last month’s rent?
Unpaid rent is an allowed deduction (Courts Self Help), but failing to pay rent can lead to eviction proceedings and damage to your rental history. Pay your final rent unless you and your landlord agree otherwise in writing.
Does a pet deposit count toward the cap?
California defines security as any payment, fee, deposit, or charge used to secure the tenant’s obligations (§ 1950.5(b)), and the cap limits the total security a landlord may receive (§ 1950.5(c)). A separate pet deposit held as security therefore counts toward the one month limit rather than being added on top of it.
Sources
- California Civil Code § 1950.5, as amended effective January 1, 2026, via Justia
- California Courts Self Help Guide, Security Deposits
- San Francisco Rent Board, Security Deposits (AB 12 summary)
- U.S. Census Bureau, ACS 2020 to 2024 5 year estimates, Tables B25003, B25064, B25119, via Homzora
- LawHelpCA.org