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What Can a Landlord Deduct From a Security Deposit in California? Know Your Rights Before Moving Out

Castelblanco Law Group > Legal Advice  > What Can a Landlord Deduct From a Security Deposit in California? Know Your Rights Before Moving Out
Security deposit money protected with lock and house symbol, illustrating landlord deductions and tenant rights in California.

Moving out of a rental home often comes with questions about what will happen to your security deposit. Many tenants don’t know what landlords can legally deduct or must return.In California, the law provides renters with clear protections and guidelines for security deposits. Knowing the rules helps you avoid surprise charges and plan a smooth move-out.

This guide shows what landlords can deduct, what counts as wear and tear, and how to fight unfair charges. In cases involving harassment, unsafe conditions, or repeated violations, speaking with a slumlord lawyer can help you address both deposit disputes and broader issues with your rental. 

It also covers California Civil Code §1950.5, which governs how deposits are collected, held, and returned. By the end, you will know exactly what steps to take to protect your deposit and your rights.

Quick Answer: What Can Be Deducted in California

Landlords can deduct unpaid rent, cleaning to restore the unit, repairs for tenant-caused damage, and removal of abandoned property. They can’t deduct for wear and tear, upgrades, or problems that existed before you moved in. Civil Code §1950.5 governs all deposits and requires landlords to return them within 21 days.

California law protects both landlords and tenants with clear rules. Under Civil Code §1950.5, only specific costs can be deducted from your security deposit. Knowing these allowed deductions ahead of time helps you plan for move-out and avoid disputes.

The main categories include repairs beyond normal wear and tear, cleaning costs to bring the unit back to move-in condition, unpaid rent, and disposal of abandoned items. Anything outside of these categories is usually not legal to deduct.

California Security Deposit Law (Civil Code §1950.5)

California has some of the most detailed rules in the country for handling security deposits. Civil Code §1950.5 explains how much a landlord can collect, how they may use it, and when it must be returned. Knowing these rules can prevent conflicts and give you a strong position if a dispute arises.

Maximum Security Deposit Allowed in California

As of July 1, 2024, most landlords in California can collect a maximum of one month’s rent as a security deposit, whether the unit is furnished or not. Small landlords who are natural persons and own no more than two properties with a total of four units may collect up to two months’ rent. These limits include all combined deposits, such as pet or key deposits.

Landlords can’t add fake ‘refundable fees’ to bypass the deposit limit. If they try, tenants may challenge the charge through local housing authorities or small claims court.

The California Department of Consumer Affairs provides guidance on these limits and updates them as state laws change. 

What the Deposit Can Be Used For

Many tenants wonder what does a security deposit cover under California landlord-tenant law. The deposit serves as financial protection for the landlord and typically covers four main areas:

  • Repairing damages caused by the tenant beyond normal wear and tear
  • Cleaning the unit to bring it back to its original condition at move-in
  • Paying unpaid rent or utilities that remain when the tenant moves out
  • Removing or storing abandoned personal property left behind

Landlords must keep receipts for any costs and provide them to the tenant along with the itemized statement of deductions. The law requires this to prevent disputes..

The 21-Day Rule for Returning Deposits

California landlords have 21 calendar days after a tenant moves out to return the deposit or provide an itemized list of deductions. If If repairs aren’t finished, landlords can send an estimate and follow up with receipts in 14 days.

Failing to meet the 21-day rule can lead to serious penalties. Tenants should keep track of this timeline and contact the landlord immediately if there is a delay. The California security deposit timeline clearly explains each step.

When Landlords Owe Penalties or Double Damages

If a landlord wrongfully withholds all or part of a deposit or fails to comply with photo documentation rules under AB 2801, tenants may receive up to twice the amount of the deposit in damages. Courts award these penalties when they find bad faith actions, such as fabricated charges or ignored deadlines.

Tenants do not need a lawyer to pursue this claim in small claims court, but having one can increase the chance of success. Free legal aid programs and tenant lawyers often take these cases without upfront fees, making it easier to hold landlords accountable.

Top 5 Legal Security Deposit Deductions in California

LAs the end of a lease approaches, questions often arise about what can a landlord charge for when you move out. In California, only certain costs can legally be deducted from a security deposit, and each deduction must be supported with clear documentation to comply with state law.

Understanding each of these will help you know what to expect when you move out and what to challenge if something seems incorrect.

1. Repairing Damage Beyond Normal Wear and Tear

A landlord can charge for fixing damage that goes beyond regular use of the rental. Normal wear and tear includes small scuffs, faded paint, or loose carpet fibers. Examples of chargeable damage include:

  • Large holes in the walls
  • Broken windows or doors
  • Burns or deep stains in the flooring
  • Significant pet damage

Landlords must provide receipts or invoices showing the exact cost of repairs. If they fail to do so, tenants can dispute the deduction by filing a complaint or taking the issue to small claims court. 

2. Professional Cleaning to Restore the Unit

Cleaning or contractor charges are allowed only when reasonably necessary to return the unit to the same level of cleanliness and condition as at move-in, excluding normal wear and tear. Routine cleaning between tenants cannot be charged to the outgoing tenant.

Common situations where cleaning fees are valid include:

  • Stains on carpets or walls caused by spills
  • Excessive grime in kitchens or bathrooms
  • Accumulated trash or debris left behind

Cleaning can restore the unit to move-in condition, but not make it cleaner than it was. If you receive a cleaning charge, compare it with your move-in inspection report and photos.

3. Unpaid Rent or Utilities

Landlords can deduct unpaid rent or other agreed-upon charges from the deposit. This includes:

  • Past-due monthly rent
  • Utility bills are listed in the lease under the tenant’s responsibility
  • Late fees are clearly stated in the lease agreement

To deduct anything, the landlord must provide proof, such as bills or the lease. If they cannot provide documentation, tenants can dispute the deduction with the local housing authority or through small claims court.

4. Early Lease Termination Costs (If Allowed by Lease)

If a tenant ends their lease early without proper notice, landlords may deduct certain costs if the lease agreement specifically allows it. This can include rent owed for the remaining lease term until the unit is re-rented, as well as advertising costs to find a new tenant.

California law requires landlords to make a good-faith effort to re-rent the property quickly after a tenant breaks the lease. They cannot continue charging rent for the full remaining term unless they actively attempt to find a new tenant and can show proof of those efforts.

5. Removal or Disposal of Abandoned Tenant Property

If a tenant leaves behind furniture, electronics, or other belongings, landlords can deduct the costs of removal and storage. The process must follow California rules for handling abandoned property, which typically include providing written notice and holding the items for a specified period.

If the property is valuable, the landlord may need to store it and allow the tenant a chance to reclaim it before selling or disposing of it. If they skip these steps, the charge is illegal and the tenant can sue.

What Landlords Cannot Deduct From a Security Deposit

California law protects tenants from unfair deductions. Landlords can’t keep the deposit as income or use it for their own costs. These rules ensure that tenants only pay for the damage they cause.

Normal Wear and Tear (Faded Paint, Loose Carpets, Minor Scuffs)

Landlords cannot charge tenants for normal wear and tear, which includes gradual changes that happen with regular living. Examples include:

  • Faded paint or wallpaper
  • Lightly worn carpeting or floorboards
  • Minor scuffs or small nail holes in the walls
  • Slightly loose cabinet handles

Courts see these as typical signs of use. If a landlord tries to deduct for normal wear and tear, tenants can dispute it using photos and the move-in checklist as evidence.

Routine Maintenance Costs (Seasonal Upkeep, Pest Control)

Landlords must handle routine upkeep and can’t charge for it. This includes tasks like:

  • Seasonal landscaping or snow removal
  • Regular pest control services
  • Servicing appliances like water heaters or HVAC systems
  • Replacing lightbulbs or smoke detector batteries

These are landlord duties and can’t be passed to tenants unless the lease clearly says so.

Full Replacement of Items Beyond Useful Life

They can’t use the deposit to replace old items past their useful life. For example, carpet older than eight years is considered to have no remaining value.

If an old item is damaged, the landlord can only charge for what’s left of its value. California courts use this rule to prevent landlords from profiting off replacements.

For a deeper explanation of this principle, the California Courts’ housing resources provide examples and guidelines.

Pre-Existing Issues Documented at Move-In

If damage existed before a tenant moved in and was documented on the move-in inspection form, the landlord cannot deduct for it. This is why tenants should review and fill out the checklist at move-in.

Photos and videos at move-in protect you from unfair charges later. If a dispute arises, this documentation serves as strong evidence in court or with local housing authorities.

Table of Allowed vs. Not Allowed Deductions in California

The table below acts as a security deposit deductions list, providing a clear comparison of situations where a landlord can and cannot deduct from a security deposit. It helps tenants quickly identify which charges are legal and which are not.

SituationAllowed Deduction?Why
Large hole in a wallYesDamage goes beyond normal wear and tear
Carpet with deep stains caused by petsYesRepair is needed to restore the unit to its original condition
Broken window or glass doorYesTenant-caused damage requiring replacement
Burn marks on the countertopYesPermanent damage to fixtures caused by misuse
Unpaid rent at move-outYesA deposit can cover past-due balances under Civil Code §1950.5
Trash removal after tenant abandonmentYesThe landlord must clear abandoned property to re-rent it.
Deep cleaning for extreme dirt or grimeYesCleaning is required to return the unit to move-in cleanliness
Early lease termination costs (if in lease)YesLease may allow recovery of specific costs until the unit is re-rented
Routine pest control serviceNoConsidered part of the landlord’s maintenance duties
Faded paint after several yearsNoGradual wear is considered normal use
Worn carpet after many yearsNoItem has reached the end of its useful life (typically 8 years)
Minor scuffs and small nail holesNoExpected wear from hanging art or normal use
Landscaping or snow removalNoRoutine upkeep is the landlord’s responsibility
Pre-existing damage documented at move-inNoTenant cannot be charged for issues noted before tenancy began
Replacing an appliance that failed due to ageNoNormal aging of appliances is the landlord’s cost
Upgrading fixtures or finishesNoImprovements to increase property value cannot be charged to the tenant
Cleaning light dust or mild dirtNoNormal cleaning expected between tenants
Water heater repair caused by wearNoRegular maintenance of major systems is the landlord’s duty
Lost keys or lock change fee (reasonable amount)YesTenant is responsible for replacing lost keys when the lease specifies

Normal Wear and Tear vs. Damage: How California Courts Decide

Courts often decide if a charge is for normal wear and tear or real damage. The difference can determine whether a charge is legal. Reviewing a security deposit deductions list can help tenants prepare before a dispute by showing what typically counts as damage versus normal use.

Courts rely on inspection reports, photos, and testimony to make this distinction. Knowing how courts decide these cases helps tenants gather good proof.

What Counts as Normal Wear and Tear

Normal wear and tear refers to the natural aging of a property due to everyday living. It happens even when tenants take good care of the space.

Examples of normal wear and tear include:

  • Faded or discolored paint and wallpaper
  • Worn carpet fibers in high-traffic areas
  • Small scuffs on walls or baseboards
  • Loose door handles or cabinet hinges from frequent use
  • Faded window coverings

These signs come from normal use, not neglect. Landlords cannot legally deduct for these changes. Tenants should document them at move-out to avoid being blamed for damage.

Examples of Tenant-Caused Damage

Damage occurs when a tenant’s actions harm the property beyond normal use. California law allows landlords to deduct the cost of fixing this type of harm.

Examples of tenant-caused damage include:

  • Large holes in walls that require patching
  • Broken tiles, windows, or light fixtures
  • Deep stains or burns on carpets or countertops
  • Missing or broken appliances provided by the landlord
  • Water damage caused by neglect, such as failing to report leaks

Courts view these issues as avoidable and the tenant’s responsibility. Photos and notes from both inspections help show who caused the damage.

How Courts Apply the Useful Life Rule

The useful life rule prevents landlords from charging tenants for brand-new replacements when items are already near the end of their lifespan. Landlords can only deduct the value left in the item’s lifespan.

For example:

  • A carpet with a typical lifespan of eight years, which is six years old, can only be charged 25% of the replacement cost if damaged.
  • A refrigerator expected to last 12 years, which is 10 years old, can only be charged for the final two years of its value.

This rule ensures deductions are fair and not a source of profit for landlords.

How to Protect Your Security Deposit

Young couple with dog meeting landlord to discuss rental agreement and security deposit deductions in California.
Smiling couple with a dog talking to their insurance agent during a meeting in the office.

If you plan, you’re less likely to lose your deposit. To protect your deposit, start before move-in and keep good records during your lease. Good records and open communication help stop unfair charges.

Use a Move-In and Move-Out Checklist

A written checklist completed at both move-in and move-out creates a record of the property’s condition. California landlords are required to provide an initial inspection checklist upon request by tenants.

When completing this form:

  • Go room by room and note every detail, even small issues like scratches or stains
  • Have both parties sign and date the document
  • Keep a copy for your records

The checklist helps prove which damages are new and which were already there.

Document Everything With Photos and Video

Photos and videos provide strong visual evidence if a disagreement arises.

Best practices include:

  • Taking images of every room before moving in, including close-ups of existing damage
  • Photographing the same areas when moving out for comparison
  • Saving files with clear labels and timestamps

Courts often rely on this type of evidence when deciding whether a deduction is legal. Without documentation, disputes often become one person’s word against another’s.

Request an Itemized Statement of Deductions

If a landlord deducts any amount from your deposit, they must provide a written itemized statement with receipts or invoices for each charge over $125. Starting in 2025, landlords must also include photographs taken at move-in, before any work, and after repairs or cleaning to show why the deduction was necessary. If they fail to provide this documentation in bad faith, they lose the right to keep any part of the deposit.

Check the list to see if charges follow the lease and state law. If you suspect the charges are false or inflated, you can challenge them with local housing agencies or through small claims court.

Ongoing Care and Communication During Tenancy

Talk to your landlord and take care of the place to avoid future disputes.

Tips include:

  • Reporting maintenance issues promptly to prevent further damage
  • Following the lease rules about pets, smoking, or appliance use
  • Keeping the rental clean and free of excessive clutter

Being careful and respectful helps avoid surprise charges and builds a good rental record.

What to Do if Your Landlord Makes an Unfair Deduction

Even when tenants follow the law and document everything, some landlords still make improper deductions. California law provides clear remedies for tenants to recover money and hold landlords accountable. Act fast and follow the steps to improve your chances of getting your money back.

1. Send a Demand Letter With Documentation

The first step is to send a formal demand letter to the landlord. This letter should:

  • Clearly state why you believe the deduction is improper
  • Include copies of your photos, videos, checklists, and receipts
  • Request the return of the full deposit or the disputed amount
  • Set a reasonable deadline for response, usually 7–10 days

A clear, polite letter often settles the problem without going to court. You can find letter templates on the California Courts website.

2. File a Complaint With the CA Department of Consumer Affairs or Local Housing Agency

If the landlord does not respond or refuses to return the deposit, tenants can file a complaint with the California Department of Consumer Affairs (DCA) or a local housing authority.

These agencies investigate disputes and can help both parties reach an agreement. The process is free and can be completed more quickly than going to court. Have your photos and records ready to prove the charge is wrong.

3. Take Your Landlord to Small Claims Court

When other methods fail, the small claims court is an effective way to recover your deposit. You can sue for up to $12,500 without hiring a lawyer.

To strengthen your case:

  • Bring all move-in and move-out documentation, including photos and videos
  • Include copies of your lease and any correspondence with the landlord
  • Show evidence of the demand letter and timeline of events

California judges often side with tenants when landlords violate Civil Code §1950.5 by withholding deposits without valid reasons.

4. When to Contact a Tenant Lawyer

If the amount at stake is large or the landlord’s behavior is especially egregious, contacting a skilled tenant attorney may be the best option. These legal professionals specialize in representing renters and have a strong understanding of California’s laws.

Lawyers help when landlords retaliate after tenants assert their rights, such as by filing false eviction notices or cutting off essential services. In these cases, legal representation protects you from further harm while pursuing your deposit.

Local Rules That May Add Protections

While California Civil Code §1950.5 sets the statewide rules for security deposits, many cities and counties have local ordinances that give renters additional protections. Local laws may add rules for deposit deadlines, interest, and limits on charges.

For example:

  • San Francisco requires landlords to pay annual interest on security deposits, with rates set by the city each year.
  • Los Angeles enforces rent stabilization rules that include strict penalties for wrongful deposit withholding.
  • Oakland and Berkeley have local housing boards that review disputes and enforce tenant protections.

Check with your city’s housing office or website to see if extra rules apply. These resources explain deposit deadlines, interest, and how to file complaints.

In cities with strong tenant laws, using both local and state rules strengthens your case. Local housing offices often help resolve disputes for free.

Conclusion: Protecting Yourself and Your Deposit

Security deposits can be stressful, but understanding your rights makes the process easier. California’s laws, especially Civil Code §1950.5, clearly define what landlords can and cannot deduct from a deposit.

Use photos, checklists, and receipts to build proof in case of a dispute.

If your landlord makes improper deductions or ignores the 21-day rule, you have several paths to recover your money. A letter, a complaint, or small claims court often solves the problem. For serious issues, a tenant lawyer can guide you and boost your chances.

By knowing what can a landlord charge for when you move out, you can prepare in advance, avoid unnecessary disputes, and take steps to get your full deposit back. Staying organized and acting early gives you the strongest chance of recovering your money.

FAQs About Landlord Deductions From Security Deposit

What Can Be Deducted From My Security Deposit in California?

Landlords can deduct unpaid rent, cleaning to restore the unit, repairs for tenant-caused damage, and removal of abandoned items, but not for normal wear, upgrades, or pre-existing issues.

How Much Can a Landlord Deduct From a Security Deposit?

They can deduct only actual, documented costs. They can deduct only documented, legal costs, such as cleaning, damage, or unpaid rent.

What if My Landlord Keeps My Deposit Without Reason?

Send a demand letter with evidence first. If unresolved, file a complaint with local housing authorities or take the case to small claims court for recovery.

Can I Take My Landlord to Small Claims Court for My Deposit?

Yes. You can sue for up to $12,500 in California without a lawyer, presenting documentation such as photos, inspection checklists, and receipts to support your claim.

Eric Castelblanco, Attorney/Founder

Eric Castelblanco, founder and managing attorney of Castelblanco Law Group, APLC, has championed tenants' rights for over two decades, securing over $200 million in verdicts and settlements. His law firm also specializes in every aspect of personal injury accident cases, delivering exceptional ou...

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