San Diego is a majority renter city with high rents and a large military population. About 279,300 of the city’s 530,400 occupied homes, or 52.7 percent, are rented, and the median gross rent is $2,313 a month, according to the U.S. Census Bureau’s 2020 to 2024 American Community Survey (Homzora San Diego dataset, Table B25003; Table B25064). Naval Base San Diego alone is the homeport of the Pacific Fleet’s surface Navy, with about 60 ships and more than 200 tenant commands (Naval Base San Diego), and the people assigned there rent homes across the region.
California’s security deposit law, Civil Code Section 1950.5, was rewritten in stages between 2024 and 2026. Some of those changes matter especially in San Diego, including a rule that protects servicemembers from higher deposits. This guide covers the current law.
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.
How much a San Diego landlord can collect
For deposits collected on or after July 1, 2024, a landlord generally may not collect security of more than one month’s rent, whether the unit is furnished or unfurnished (Cal. Civ. Code § 1950.5(c); San Francisco Rent Board summary of AB 12). At San Diego’s median gross rent of $2,313, that means a deposit of no more than $2,313 for a unit at that rent.
The small landlord exception
A landlord who is a natural person, or an LLC whose members are all natural persons, and who owns no more than two residential rental properties with no more than four units offered for rent in total, may collect up to two months’ rent (§ 1950.5(c)(5)). Many San Diego renters lease houses, condos, and granny flats from individual owners, so this exception comes up often.
Servicemembers are always limited to one month
The two month exception does not apply if the prospective tenant is a servicemember. A landlord relying on the exception may not refuse to rent to a servicemember because of this limit and must stay within the one month cap (§ 1950.5(c)(5)). If you are on active duty and a small landlord asks for two months, point to this subsection.
What counts as security
California defines security broadly as any payment, fee, deposit, or charge used to secure the tenant’s obligations, and it prohibits leases from calling any security nonrefundable (§ 1950.5(b), (n)). A “move in fee” or “cleaning fee” that functions as security is subject to the same rules and the same cap.
Allowed deductions
According to the California Courts Self Help Guide, a landlord may deduct for unpaid rent, cleaning to return the unit to its move in level of cleanliness, 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.
The move out timeline
| Step | Rule | Source |
|---|---|---|
| After you give notice | The landlord must tell you in writing of your right to request an initial inspection | Courts Self Help |
| Up to two weeks before you leave | If requested, the initial inspection takes place no earlier than two weeks before the tenancy ends | § 1950.5(f) |
| After you return the unit | The landlord photographs the unit before deductible repairs or cleaning, and again after | § 1950.5(g) |
| Within 21 calendar days | Itemized statement of deductions and return of the balance | § 1950.5(h) |
Receipts or invoices for repair and cleaning charges are required unless those deductions total $125 or less (California Courts Self Help). For tenancies that began on or after July 1, 2025, the landlord must also have photographed the unit at the start of the tenancy (§ 1950.5(g)).
Electronic refunds since January 1, 2026
If the landlord received your deposit or rent electronically, the remaining deposit generally must be returned electronically to an account you designate in writing, or by another electronic method you agree to in writing, unless you agree in writing to a different method (§ 1950.5(h)). For military families moving across the country on orders, electronic return is often the fastest and safest option.
A move out plan for military families
- Confirm your termination date in writing, especially if you are ending the lease early on orders under the federal Servicemembers Civil Relief Act (50 U.S.C. § 3955).
- Request the initial inspection as soon as your move date is set.
- Fix the listed items before the moving company arrives.
- Photograph every room after the movers leave.
- Give the landlord a forwarding address and, if you paid electronically, the account for an electronic refund, in writing.
- Count 21 calendar days from the day you vacate.
If the landlord keeps too much
An individual may sue for up to $12,500 in California small claims court (California Courts Self Help). If the court finds the landlord retained the deposit in bad faith, it may award statutory damages of up to twice the amount of the security in addition to actual damages (§ 1950.5(m)).
The Legal Aid Society of San Diego provides free legal help to eligible residents and publishes guidance on local tenant protections (Legal Aid Society of San Diego). Service members can also consult their installation legal assistance office.
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 San Diego 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 San Diego require interest on deposits?
California’s Section 1950.5 does not impose a general interest requirement (§ 1950.5), and San Diego’s Tenant Protection Ordinance, as summarized by the Legal Aid Society of San Diego, addresses evictions and relocation assistance rather than deposits (LASSD, Tenant Protection Ordinance FAQ).
My lease started before July 2024 with a two month deposit. Is that still allowed?
The one month cap applies to security collected on or after July 1, 2024 (San Francisco Rent Board summary of AB 12). A deposit collected earlier is not automatically reduced.
Can my landlord charge for repainting after three years?
Only for damage beyond normal wear and tear (California Courts Self Help). Paint that has simply aged with ordinary use is generally wear and tear; holes, stains, or unapproved colors may not be.
Explore the San Diego data
San Diego rent, income, and tenure figures are available in Homzora’s free San Diego data library. The median renter household income in the city is $84,349 (Table B25119).
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)
- 50 U.S.C. § 3955, Legal Information Institute
- Naval Base San Diego
- Legal Aid Society of San Diego, Tenant Protection Ordinance FAQ
- U.S. Census Bureau, ACS 2020 to 2024 5 year estimates, Tables B25003, B25064, B25119, via Homzora
- Legal Aid Society of San Diego