One month's rent. The return rule is 21 days. The controlling text is Cal. Civ. Code § 1950.5.
Shared move-in, deduction, and refund workflow: the national state-law hub.
California note: AB 12 cut the old two-month ceiling to one month on July 1, 2024. Confirm any lease signed before then against the current rule at renewal.
California's deposit ceiling
One month's rent.
Since AB 12 took effect on July 1, 2024, the cap is one month's rent for furnished or unfurnished units. A small landlord who owns no more than two properties totaling four or fewer units may collect up to two months, except from a service member, who is always capped at one month.
California's return deadline
21 days.
You have 21 calendar days after the tenant moves out to return the deposit with an itemized statement. If a deduction is $125 or more, you must attach receipts or invoices, and if repairs cannot finish in time you may send a good-faith estimate first and the documents within 14 days of completing the work.
The itemized statement rule
An itemized statement is required for any deductions, with supporting receipts for lines of $125 or more. A tenant may also request a pre-move-out inspection so they can fix issues before you write the statement.
Account and interest rules
California sets no separate-account or interest requirement at the state level, though some rent-controlled cities require interest. Keep the deposit out of operating cash regardless.
Exposure for wrongful withholding
Up to 2x statutory damages for bad faith.
A landlord who retains a deposit in bad faith is liable for the actual amount plus statutory damages of up to twice the deposit. Courts read the receipt requirement and the 21-day clock strictly, so late or undocumented deductions are the usual path to that exposure.
Compare California with neighboring states
- Oregon: no statutory limit; return rule: 31 days.
- Nevada: three months' rent; return rule: 30 days.
- Arizona: one and a half months' rent; return rule: 14 business days.
Verified against Cal. Civ. Code § 1950.5 and official state sources in July 2026. Before withholding money, check the current statute text or ask a local landlord-tenant attorney. General information, not legal advice.