Deductions to Security Deposits in California
The California law that governs this issue is California Civil Code § 1950.5(g)(2) and AB 2801, which updated the former.
Key Points:
I. **BRAND NEW Requirements Per AB 2801:
1. Photographic Evidence (Applies ONLY to tenancies beginning on or after July 1, 2025): If a landlord deducts more than $125.00 from the security deposit, they must provide supporting documentation that shows the charges deducted to repair or clean the property. Landlords must take photographs of the rental premises:
a) Before or at the inception of the tenancy; AND
b) Within a reasonable time after the tenant vacates, but before any repairs or cleanings for which deductions will be made; AND
c) After completing the repairs or cleanings.
**TIP RE Photographs: These photographs must be provided to the tenant along with the itemized statement of deductions.
2. Limitation on Deductions for Unidentified Damages (Effective April 1, 2025): If a landlord conducts an initial inspection and provides an itemized statement of proposed deductions, they cannot later deduct for damages or cleaning issues that were not identified during that inspection, unless such issues were obscured by the tenant's belongings or occurred after the inspection.
3. Prohibition on Charging for Routine Carpet Cleaning (Effective April 1, 2025): Landlords are prohibited from charging tenants for carpet cleaning, professional or otherwise, unless it is reasonably necessary to return the premises to the condition it was in at the inception of the tenancy.
4. Limitation on Repair Costs (Effective April 1, 2025): Deductions for repairs are now limited to the reasonable amount necessary to restore the premises back to the condition it was in at the inception of the tenancy, excluding ordinary wear and tear.
II. Pre-existing Requirements for Deductions to Security Deposits:
These rules are already in effect and are not changed by the amendments to this law.
1. The landlord must provide an itemized statement explaining the deductions.
2. If the landlord hired someone to do repairs, they must attach invoices or receipts for the work.
3. If the landlord or their employee did the repairs themselves:
a) They must describe the work performed.
b) They must include the time spent on the work.
c) They must specify their hourly rate, which must be reasonable.
Landlords can deduct from the security deposit for:
a) Cleaning the rental unit when a tenant moves out, but only to make it as clean as when the tenant first moved in;
b) Repairing damage, other than normal wear and tear, caused by the tenant and the tenant's guests
c) Restoring or replacing furniture or other personal items, but only if this was included in the rental agreement and the damage isn't from normal wear and tear
d) Rent owed: Generally, a landlord can keep part of the security deposit for rent owed, with some exceptions.
Exceptions to Landlords Deducting Rent Owed from Security Deposit:
1) Deducting Covid-19 Rental Debt: In California, a landlord cannot use a tenant’s security deposit to cover COVID-19 rental debt due to legal protections put in place during the pandemic. COVID-19 rental debt refers to unpaid rent or other rental obligations that accrued between March 1, 2020, and September 30, 2021, due to financial hardship caused by the pandemic.
**This is because of AB 832, which says, in part, that a security deposit cannot be applied to COVID-19 rental debt unless the tenant voluntarily agrees to it.
