California Security Deposit Laws: Limits, Returns & Deductions
California limits security deposits to 2x monthly rent (3x for furnished). Learn the 21-day return rule, allowable deductions, and documentation requirements.
Required Clauses, Prohibited Terms & Best Practices
California law doesn't require written leases—oral agreements are legally valid. However, written leases are strongly recommended because they provide clear documentation of terms, reduce disputes, and offer better legal protection in court.
For leases longer than one year, California's Statute of Frauds requires a written agreement. Month-to-month and short-term leases under 12 months can be oral, though this is inadvisable for landlords.
A comprehensive California lease should include:
California mandates certain disclosures and information be included in lease agreements or provided separately.
For properties built before 1978, federal law requires lead paint disclosure. Include this as an addendum and ensure both parties sign acknowledging receipt of EPA pamphlets.
Must inform tenants about the Megan's Law sex offender database and how to access it. Standard language: "Information about specified registered sex offenders is made available to the public via an Internet Web site maintained by the Department of Justice at www.meganslaw.ca.gov."
California requires disclosure of the property's smoking policy. Specify whether smoking is prohibited entirely, allowed in designated areas, or unrestricted.
State the security deposit amount, conditions for withholding, and the 21-day return timeline. Clarify what is considered normal wear and tear versus chargeable damage.
Provide the California Department of Housing and Community Development bed bug information sheet and disclose any bed bug history in the previous two years.
Provide the "Residential Environmental Hazards" booklet addressing mold and disclose any known mold issues.
California Civil Code Section 1962 requires disclosure of the property owner's name and address, and if applicable, the property manager's name and contact information.
Warning: California law explicitly prohibits certain lease terms. Including these clauses may render them unenforceable or expose landlords to penalties.
Legal Consequence: Including prohibited clauses doesn't just make those specific terms unenforceable—it can support tenant claims of unfair business practices and may result in penalties.
Tenants cannot be required to waive their right to jury trial in residential lease disputes.
Clauses attempting to exempt landlords from liability for injuries caused by their negligence are generally unenforceable.
While you can limit long-term guests (typically 14 days in a month), you cannot prohibit tenants from having any overnight guests.
California law limits mandatory arbitration clauses in residential leases. As of 2025, certain consumer-focused protections may affect enforceability. Consult legal counsel before including arbitration provisions.
California doesn't set statutory late fee limits, but fees must be reasonable (generally $50-$75 or 5-6% of rent). Include grace periods and clearly state when late fees apply.
California allows fees for dishonored checks. The maximum is the lesser of $25 for first offense, $35 for subsequent offenses, or the bank charge amount plus $12.
Specify whether pets are allowed, any size/breed/species restrictions, pet deposits (within overall security deposit limits), and monthly pet rent.
Clarify which repairs are landlord responsibility (structural, major systems) and which are tenant responsibility (minor repairs, light bulbs, air filter changes).
State that landlord may enter with 24-hour notice for repairs, inspections, showings, or emergencies. Specify acceptable entry hours (typically 8am-5pm on business days).
Specify whether subletting is prohibited, allowed with landlord approval, or unrestricted. California law gives tenants some subletting rights, but you can require approval.
While you cannot require specific coverage amounts that are unreasonable, you can require tenants to maintain renter's insurance and provide proof annually.
If allowing pets, use a detailed pet addendum specifying pet details, additional deposits or rent, damage liability, and behavior expectations.
For properties with limited or assigned parking, specify number of spaces, vehicle identification, guest parking rules, and storage restrictions.
If the property is subject to HOA or condo association rules, attach CC&Rs and require tenant compliance. Specify consequences for violations.
If allowing waterbeds or other heavy/unusual furniture, require insurance documentation and indemnification for damage.
Provide stability for both parties. Tenants have occupancy security; landlords have income predictability. Rent cannot be increased during the fixed term unless the lease explicitly allows it.
At the end of the fixed term, the lease either renews (if a renewal clause exists), converts to month-to-month, or terminates based on lease terms and tenant actions.
Offer flexibility but less stability. Under AB 1482, landlords need just cause to terminate month-to-month tenancies for covered properties. Rent can be increased with proper notice (30 or 90 days) subject to AB 1482 caps.
For properties exempt from AB 1482, month-to-month leases can be terminated with 30 days' notice (60 days if tenant has lived there over one year).
Specify exact monthly rent amount and due date. If rent is due on the 1st, state whether there's a grace period (e.g., "rent due on the 1st, late fee applied after the 5th").
Maximum two times monthly rent for unfurnished units, three times for furnished. State deposit amount, conditions for withholding, and return procedures.
List any additional charges: pet rent, parking fees, storage fees, late fees, NSF fees, etc. Ensure all fees are reasonable and clearly documented.
Lease modifications require mutual agreement. You cannot unilaterally change lease terms during the lease period. Modifications should be in writing and signed by all parties.
Common modifications include adding or removing tenants, allowing pets mid-lease, or extending lease terms.
All adult tenants (age 18+) should sign the lease. Landlords or their authorized agents must also sign. Keep signed originals on file and provide copies to all tenants.
Electronic signatures are generally valid in California if all parties consent and proper verification measures are used.
A well-drafted lease is the foundation of a successful landlord-tenant relationship. It sets expectations, prevents disputes, and provides legal protection when problems arise.
For Placer County landlords in Roseville, Rocklin, Auburn, and surrounding areas, Lifetime Property Management uses attorney-reviewed, California-compliant lease agreements tailored to current law. Our leases include all required disclosures, avoid prohibited terms, and protect your interests while maintaining tenant relationships.
Get personalized property management advice from our local experts.
California limits security deposits to 2x monthly rent (3x for furnished). Learn the 21-day return rule, allowable deductions, and documentation requirements.
California landlords must provide 17+ mandatory disclosures before tenants move in. Learn what to disclose, when, and avoid penalties up to $2,500 per violation.
California limits rent increases to 5% plus CPI (max 10%) annually under AB 1482. Learn notice requirements, exempt properties, and avoid violations.