Los Angeles is a city of renters. Of about 1,439,100 occupied homes in the city, roughly 920,700, or 64 percent, are rented, and the median gross rent is $1,933 a month, according to the U.S. Census Bureau’s 2020 to 2024 American Community Survey (Homzora Los Angeles dataset, Table B25003; Table B25064). About 286,100 renter households, roughly 31 percent of the city’s renters, pay half or more of their income in rent (Table B25070). For those households, a security deposit is money they cannot afford to lose.
California’s deposit rules changed substantially in 2024 and 2025. There is now a statewide cap on how much a landlord can collect, new photo documentation requirements, and, for many Los Angeles apartments, a city rule requiring interest on deposits. This guide covers all of it.
Homzora is a housing research publisher, not a law firm. This article explains California and Los Angeles rules in plain English and is not legal advice for your situation.
The rules at a glance
| Rule | What it requires | Source |
|---|---|---|
| Deposit cap | One month’s rent, furnished or unfurnished, for deposits collected on or after July 1, 2024, with a limited small landlord exception | San Francisco Rent Board summary of AB 12 |
| Refund deadline | 21 days after you move out, with an itemized statement for any deductions | California Courts Self Help |
| Receipts | Required with the statement if deductions exceed $125 | California Courts Self Help |
| Photos | Required at move out since April 1, 2025, and at move in for tenancies beginning on or after July 1, 2025 | San Francisco Rent Board |
| Bad faith | The tenant may recover the deposit plus up to twice its amount in damages | California Courts Self Help |
| Interest in RSO units | City of Los Angeles rent stabilized units earn interest at a rate set each year | AAGLA, citing LAMC § 151.06.02 |
How much can a Los Angeles landlord collect?
Under Assembly Bill 12, the maximum security deposit for deposits collected on or after July 1, 2024 is one month’s rent, whether the unit is furnished or unfurnished (San Francisco Rent Board, Security Deposits). The rule appears in Section 1950.5 of the California Civil Code (Cal. Civ. Code § 1950.5).
There is one exception. A landlord who is a natural person, or a limited liability company whose members are all natural persons, and who owns no more than two residential rental properties with no more than four dwelling units in total, may collect up to two months’ rent (San Francisco Rent Board). If you are renting a single family home or a unit in a small building from an individual owner, ask whether the landlord is relying on this exception. The two month exception does not apply when the prospective tenant is a servicemember, and a landlord may not refuse to rent to a servicemember because of that limit (Cal. Civ. Code § 1950.5(c)(5)).
At the Los Angeles median gross rent of $1,933, the general cap means a deposit of no more than $1,933 for a unit at that rent.
What a landlord may deduct
California allows deductions for specific purposes only. According to the California Courts Self Help Guide, a landlord may deduct for unpaid rent; cleaning needed to return the unit to the level of cleanliness it had at move in; repair of damage beyond normal wear and tear caused by the tenant or guests; and restoring or replacing furniture or other items included in the rental, if damaged beyond normal wear and tear (California Courts Self Help, Security Deposits).
Normal wear and tear is not deductible. In a city where about 296,200 housing units were built in 1939 or earlier (Table B25034), many apartments have aging floors, fixtures, and finishes that deteriorate through ordinary use. That kind of deterioration is the landlord’s cost, not yours.
The move out process
Ask for the initial inspection
After you give notice that you are moving out, your landlord must tell you in writing that you have the right to request an inspection before you move (California Courts Self Help). If you request it, the inspection takes place no earlier than two weeks before the end of the tenancy (Cal. Civ. Code § 1950.5(f)). Take the offer. The inspection gives you a list of what the landlord intends to charge for, and time to fix those items yourself before you leave.
Photos are now the landlord’s job too
Since April 1, 2025, landlords must photograph the unit within a reasonable time after you return possession but before any repairs or cleaning for which a deduction will be made, and again after those repairs or cleaning are done. For tenancies beginning on or after July 1, 2025, landlords must also photograph the unit immediately before or at the start of the tenancy (San Francisco Rent Board). Take your own photos as well; two sets of evidence are better than one.
The 21 day deadline
Within 21 days after you move out, the landlord must return your full deposit or send an itemized statement explaining any deductions along with the balance. If deductions exceed $125, the landlord must include copies of receipts or invoices (California Courts Self Help).
How the refund must be paid, starting in 2026
Section 1950.5 was amended effective January 1, 2026. If your landlord received your deposit or rent electronically, the remaining deposit generally must be returned electronically to a bank account or financial institution you designate in writing, or by another electronic method you agree to in writing, unless you and the landlord agree in writing to a different method. Otherwise, the default is personal delivery or a check mailed by first class mail. When rent or the deposit was handled electronically, the landlord must also tell you in writing about your right to an electronic refund (Cal. Civ. Code § 1950.5(h)).
Interest on deposits in rent stabilized units
Many Los Angeles apartments are covered by the city’s Rent Stabilization Ordinance. For those units, Los Angeles requires landlords to pay interest on security deposits, at a rate the city sets each year, under Los Angeles Municipal Code Section 151.06.02. The landlord may pay accrued interest monthly or annually, directly or as a credit against rent, and must tell tenants in writing which method it uses. For 2025, the rate was 4.32 percent (Apartment Association of Greater Los Angeles). Check with the Los Angeles Housing Department for the current year’s rate (LAHD, Renter Protections).
If your landlord keeps too much
Ask in writing
Send a letter listing the deductions you dispute, why you dispute them, and the amount you want returned, with copies of your photos. Mention Civil Code Section 1950.5 and the bad faith remedy.
Small claims court
An individual may sue for up to $12,500 in California small claims court (California Courts Self Help), which covers most deposit disputes. If the judge finds the landlord kept the deposit in bad faith, the tenant can recover the deposit plus up to two times the deposit as additional damages (California Courts Self Help).
Free help
The Legal Aid Foundation of Los Angeles provides free civil legal services to eligible residents (Legal Aid Foundation of Los Angeles), and LawHelpCA.org lists other free legal resources by county (LawHelpCA.org).
A Los Angeles move out checklist
- Give written notice as your lease requires and keep a copy.
- Request the initial inspection and attend it.
- Fix or clean the items the inspection identified.
- Photograph every room after it is empty.
- Return all keys and fobs and get a receipt.
- Give a forwarding address in writing.
- Mark day 21 on your calendar.
- If you live in an RSO unit, confirm any interest owed has been paid.
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 Los Angeles 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
My landlord collected two months’ deposit in 2023. Do I get some back now?
The one month cap applies to deposits collected on or after July 1, 2024 (San Francisco Rent Board). A deposit collected earlier is not automatically reduced, but ask about it at renewal, since a renewal can be a new agreement.
Can my landlord call part of the deposit “nonrefundable”?
No. Section 1950.5 defines security broadly as any payment, fee, deposit, or charge used to secure the tenant’s obligations, and it states that a lease or rental agreement shall not contain a provision characterizing any security as nonrefundable (Cal. Civ. Code § 1950.5(b), (n)).
Is my apartment covered by the Rent Stabilization Ordinance?
LAHD explains which units are covered and offers a lookup on its renter protections pages (LAHD).
Explore the Los Angeles data
All Los Angeles figures in this guide come from Homzora’s free Los Angeles data library.
Sources
- California Civil Code § 1950.5, California Legislative Information
- California Civil Code § 1950.5, 2025 code as amended effective January 1, 2026, via Justia
- San Francisco Rent Board, Security Deposits (summary of AB 12 and photo rules)
- California Courts Self Help Guide, Security Deposits
- Apartment Association of Greater Los Angeles, Security Deposit Interest Requirement
- Los Angeles Housing Department, Renter Protections
- U.S. Census Bureau, ACS 2020 to 2024 5 year estimates, Tables B25003, B25064, B25070, B25034, via Homzora
- Legal Aid Foundation of Los Angeles
- LawHelpCA.org