California landlords can deduct security deposit funds for permitted costs such as unpaid rent, necessary cleaning, tenant-caused damage, qualifying restoration of landlord-provided items, and other legally recoverable expenses. At the same time, deductions cannot cover normal wear and tear, documented pre-existing damage, routine turnover cleaning, age-related deterioration, unsupported charges, or other prohibited expenses. These limits help separate a tenant’s financial responsibility from the landlord’s regular property maintenance obligations.
To support valid deductions, landlords need clear evidence, including move-in and move-out photos, before-and-after documentation, receipts or invoices, and records showing why each charge was necessary. Also consider depreciation when calculating qualifying charges for older, long-life items. The itemized security deposit statement should clearly identify each deduction, account for the deposit and remaining balance, document landlord-performed work, and address qualifying unfinished repairs.
California’s 21-day rule also sets a firm timeline for returning the balance and required statement. Following these requirements helps landlords avoid common mistakes, including excessive deposits, automatic cleaning fees, unsupported replacement costs, pre-existing damage charges, and bad-faith withholding.
What Can a Landlord Deduct From a Security Deposit in California?
Landlords can deduct unpaid rent, cleaning costs, tenant-caused damage, restoration or replacement of landlord-provided items, and abandoned property removal costs from a security deposit in California. These deductions cover specific costs a landlord incurs when a tenant leaves unpaid obligations, damage, or property-related cleanup at the end of the tenancy.
Below are the 4 factors landlords can deduct from a security deposit in California:
- Unpaid Rent
Landlords can deduct unpaid rent from a security deposit when a tenant still owes rent at the end of the tenancy. California Civil Code § 1950.5 permits a security deposit to be used to remedy a tenant’s default in paying rent, so the deduction should reflect the amount legally owed rather than serve as a penalty. For example, if a tenant leaves with $1,200 in unpaid rent and has a $2,000 security deposit, the landlord may apply $1,200 toward the outstanding rent, subject to the applicable rental agreement and California law.
- Cleaning Costs
Under California Civil Code § 1950.5(b)(3), when a tenant leaves the rental unit dirtier than it was at the beginning of the tenancy, the landlord can deduct reasonable cleaning costs from the security deposit to restore the same level of cleanliness. For example, deductions may cover excessively dirty floors, bathrooms, kitchen surfaces, or appliances that were clean at move-in. Routine turnover cleaning and conditions resulting from ordinary wear and tear generally do not justify a deduction. The unit’s documented move-in condition helps determine whether the cleaning expense is chargeable to the tenant.
- Repair of Tenant-Caused Damage
If a tenant, their guests, or other occupants cause damage beyond ordinary wear and tear, the landlord may deduct reasonable repair costs as permitted by California Civil Code § 1950.5(b)(2). This includes large holes in walls, broken windows, damaged doors, or severely damaged flooring. Normal deterioration caused by everyday residential use generally does not qualify for a deduction. Any repair charge should reflect the reasonable cost of fixing tenant-caused damage, not unrelated upgrades or property improvements.
- Replacement or Restoration of Landlord-Provided Items
California Civil Code § 1950.5(b)(4) permits certain deductions for restoring, replacing, or returning landlord-provided personal property to its condition at the beginning of the tenancy, excluding ordinary wear and tear, when authorized by the rental agreement. For example, this may apply to a landlord-provided dining table that the tenant substantially damaged. The item’s age, condition, and useful life should be considered when determining the appropriate deduction.
Note: In California, landlords have 21 days after a tenant moves out to return the security deposit or the amount left after deductions. They must provide a list explaining each deduction, and deductions over $125 require receipts or invoices. For example, if a repair is not finished within 21 days, the landlord can give an estimated cost and provide the final receipt within 14 days after the repair is completed.
What Security Deposit Deductions Are Prohibited in California?
Security deposit deductions that are prohibited in California include normal wear and tear, pre-existing damage, routine cleaning, age-related deterioration, unsupported or improperly documented charges, and unrelated repairs or improvements. These restrictions prevent landlords from charging tenants for ordinary property deterioration or expenses that are not legally attributable to the tenant.
7 security deposit deductions that are prohibited in California are:
- Normal Wear and Tear
Normal wear and tear results from ordinary use of a rental property over time and cannot be charged against a tenant’s security deposit. Common examples include faded paint, minor wall scuffs, and carpet wear in frequently used areas. California distinguishes these conditions from damage caused by tenant negligence, misuse, or abuse. If a condition developed through reasonable everyday living rather than tenant-caused damage, its repair or replacement remains a property maintenance expense rather than a valid security deposit deduction.
- Documented Pre-Existing Damage
Landlords cannot deduct from a security deposit for damage or defects that existed before the tenancy began, and they cannot charge tenants for upgrades or improvements unrelated to a permitted security-deposit deduction. AB 2801 amended California Civil Code § 1950.5 to strengthen these requirements and establish photographic documentation rules for security-deposit deductions. Move-in inspection records, photographs, and other condition documentation can help distinguish pre-existing conditions from damage caused during the tenancy.
- Routine Carpet Cleaning
For routine carpet cleaning between tenancies, landlords cannot automatically deduct the cost from a tenant’s security deposit. Normal dirt and gradual carpet wear caused by everyday use are considered part of regular property upkeep. A deduction applies when the tenant leaves the carpet significantly dirtier than it was at move-in or causes damage beyond normal wear, such as major stains or pet damage. Any carpet cleaning charge should therefore reflect the carpet’s actual condition and cleaning required because of the tenant, rather than a standard turnover fee.
- Age-Related Repairs or Replacements
Age-related deterioration is a property expense when an item wears out through ordinary use rather than tenant misuse. For example, an older appliance that stops working because it has reached the end of its useful life does not justify charging the tenant for a new replacement. When an item deteriorates through normal use or age rather than tenant-caused damage, a landlord generally cannot deduct its repair or replacement cost from the security deposit. A landlord also should not charge a tenant the cost of replacing an aging item merely because it reached the end of its normal life.
- Automatically Non-Refundable Deposit Fees
A landlord cannot label any part of a security deposit as “non-refundable” and automatically keep it. Under California Civil Code § 1950.5, the landlord must return the deposit unless it has a legal reason to deduct, such as unpaid rent, necessary cleaning, or tenant-caused damage. For example, a landlord cannot automatically keep a $200 cleaning deposit if no chargeable cleaning is needed. A lease term calling a security deposit non-refundable does not remove the tenant’s right to receive the refundable amount.
- Unsupported or Improperly Documented Charges
California Civil Code § 1950.5 requires landlords to provide an itemized statement explaining security deposit deductions within the applicable 21-day period. When deductions for repairs or cleaning exceed $125, supporting receipts, invoices, or bills generally must accompany the statement, subject to statutory exceptions. If the landlord or an employee performs the work, the statement must describe the work performed, time spent, and reasonable hourly rate. When work cannot be completed within 21 days, the law also provides procedures for using a good-faith estimate and later supplying the required documentation.
- Repairs or Improvements Unrelated to Tenant-Caused Damage
A landlord cannot use a security deposit to charge a tenant for general renovations, property upgrades, or repairs unrelated to tenant-caused damage or another permitted deduction. California Civil Code § 1950.5 limits security deposit deductions to specified purposes, including qualifying cleaning costs, damage beyond ordinary wear and tear, certain restoration of landlord-provided personal property, and unpaid rent. Costs to improve or renovate the property beyond these permitted purposes generally cannot be deducted from the tenant’s security deposit.
What Proof Do California Landlords Need for Security Deposit Deductions?
California landlords may need photographs showing the rental unit before and after the tenancy, photos taken before and after deducted cleaning or repairs, an itemized statement of deductions, and applicable receipts, invoices, or other cost documentation. Exact documentation requirements depend on the tenancy, the type and amount of deduction, and the work performed. These records help establish the property’s condition, connect deductions to permitted expenses, and support the amount withheld from the security deposit.
The 6 key types of proof California landlords need for security deposit deductions are:
- Move-in Condition Photos or Video
For tenancies beginning on or after July 1, 2025, California Civil Code § 1950.5, as amended by AB 2801, requires landlords to take photographs documenting the rental unit’s condition at or before the start of the tenancy. These photos provide a baseline for comparison with required move-out photographs when evaluating security deposit deductions. For tenancies that began before July 1, 2025, move-in documentation can still provide useful evidence of the unit’s original condition but is not subject to the same move-in photographic requirement.
- Move-Out Photos Before Work Begins
Before starting any cleaning or repairs, landlords must photograph the rental unit to document its condition after the tenant moves out. These photos show the damage, dirt, or other conditions used to support a security deposit deduction. Unlike the move-in photo requirement, this requirement applies regardless of when the tenancy began. Receipts and repair invoices can show what a landlord paid, but move-out photos provide evidence that the claimed condition actually existed before the work started.
- Before-And-After Repair or Cleaning Photos
For deductions involving repairs or cleaning, California Civil Code § 1950.5 requires landlords to take photographs after the work is completed, when the statutory photographic-documentation requirements apply. These photos document the completed work and, together with the required move-out photos, help connect the tenant’s move-out condition to the cleaning or repairs supporting the security deposit deduction.
- Receipts or Invoices for Actual Costs
When security deposit deductions for repairs or cleaning exceed $125, California Civil Code § 1950.5 generally requires applicable receipts, invoices, or bills to accompany the itemized statement, subject to statutory exceptions. If the landlord or an employee performs the work, the statement must describe the work, time spent, and reasonable hourly rate. When qualifying work cannot reasonably be completed within the 21-day period, the landlord may provide a good-faith estimate and then provide the required documentation within 14 days after the work is completed.
- Evidence Connecting the Charge to a Permitted Deduction
Evidence supporting a security deposit deduction should connect the charge to a purpose permitted under California Civil Code § 1950.5. Permitted deductions include necessary cleaning, tenant-caused damage beyond ordinary wear and tear, qualifying restoration of landlord-provided personal property, and generally unpaid rent. This is an evidentiary principle, not a separate document requirement. Supporting records should show the charge relates to an allowable deduction rather than an unrelated renovation or property improvement.
- Age and Useful Life of Long-Life Items
For damaged long-life items, factors such as the item’s age, prior condition, expected useful life, and depreciation may help determine a reasonable deduction. California Civil Code § 1950.5 does not expressly require landlords to maintain depreciation records for every item. However, available records showing an older item’s age and condition can help support the amount claimed rather than automatically assigning the full cost of a new replacement.
What Must California Landlords Include in an Itemized Security Deposit Statement?
California landlords must include each deduction as a separate line item, deposit disposition, remaining balance, landlord-performed work, pending repair estimates, required receipts or invoices, and delivery within 21 days. These details show tenants exactly how their security deposit was used, why money was withheld, and how much of the deposit is being returned.
7 key requirements for California security deposit accounting are:
- Separate Line Item for Each Deduction
Each security deposit deduction should appear separately on the itemized statement so the tenant can see exactly why money was withheld. Instead of combining cleaning, repairs, and other costs into one total, the statement should identify each charge and its amount. For example, carpet cleaning and wall repair should appear as separate deductions when both qualify. This breakdown creates a clear record of how the landlord calculated the amount withheld and allows the tenant to review each security deposit deduction individually.
- Deposit Amount and Final Disposition
California Civil Code § 1950.5 requires the itemized statement to identify the basis and amount of each security deposit deduction. A complete accounting may also show the original deposit amount, total deductions, and remaining amount returned to the tenant, helping explain the deposit’s final disposition. However, the original deposit amount should not be described as a separately required element of the itemized statement under § 1950.5.
- Remaining Balance Returned
Any security deposit balance remaining after permitted deductions must be returned to the tenant. The itemized statement should make the returned amount clear so the tenant can compare it with the original deposit and deductions. For example, if $500 is properly deducted from a $2,000 deposit, the accounting should show the applicable $1,500 balance. Clearly stating the remaining balance helps the tenant understand the final calculation without having to determine the refund amount from multiple charges or supporting documents.
- Details for Landlord-Performed Work
When a landlord or the landlord’s employee performs cleaning or repair work charged against the security deposit, the itemized statement needs information supporting that labor charge. California Civil Code § 1950.5 requires the statement to describe the work performed, the time spent completing it, and the reasonable hourly rate charged. These details explain how the labor cost was calculated when there is no outside contractor invoice. The tenant can then see what work was completed and how the landlord arrived at the amount deducted.
- Estimate for Pending Repairs
If qualifying cleaning or repairs cannot be completed within the 21-day security deposit period, the landlord can include a good-faith estimate of the expected cost in the itemized statement when the statutory requirements are met. The estimate should identify the unfinished work and the expected charge. Once the work is completed and the actual cost becomes available, the landlord must provide the required final documentation within the applicable timeframe. This process accounts for necessary work that cannot reasonably be completed before the initial statement is due.
- Receipts or Invoices When Required
California landlords generally must provide supporting documentation for qualifying security deposit deductions when Civil Code § 1950.5 applies. This may include receipts, invoices, or bills for third-party work. When the landlord or an employee performs the work, the itemized statement must include specified information about the work performed, time spent, and reasonable hourly rate.
- Delivery Within 21 Days
California landlords must provide the required security deposit accounting within 21 calendar days after the tenant vacates the rental property. Within this period, the landlord must send the remaining security deposit balance and the required itemized statement if deductions were made. Applicable receipts, invoices, or other required supporting documents should also accompany the accounting as required by California Civil Code § 1950.5. Meeting the 21-day deadline gives the tenant a timely explanation of deductions and shows how much of the security deposit is being returned.
How Does the 21-Day Rule Apply to California Landlords Making Security Deposit Deductions?
California’s 21-day rule begins after the tenant moves out and returns possession. Landlords have 21 calendar days to return the deposit or remaining balance with the required accounting. Landlords may use good-faith estimates for qualifying unfinished work, subject to follow-up requirements. A dispute does not pause the deadline, and noncompliance may lead to a tenant claim and potential bad-faith damages.
The 6 key rules under California’s 21-day security deposit timeline are:
- 21-Day Period Begins After the Tenant Moves Out
- Landlords Have 21 Calendar Days
- Deposit or Remaining Balance Must Be Returned With the Accounting
- Good-Faith Estimates Are Allowed for Unfinished Work
- A Dispute Does Not Suspend the 21-Day Accounting Deadline
- Missing the Deadline Can Lead to a Claim and Bad-Faith Damages
What Security Deposit Deduction Mistakes Should California Landlords Avoid?
California landlords should avoid charging for normal wear and tear, charging full replacement costs without depreciation, applying automatic cleaning fees, collecting deposits above the one-month cap, deducting for pre-existing damage, and withholding security deposits in bad faith. Avoiding these errors helps landlords make deductions based on actual tenant responsibility and comply with California security deposit requirements.
The 6 security deposit deduction mistakes California landlords should avoid are:
- Charging for Normal Wear and Tear
- Charging Full Replacement Cost Without Depreciation
- Applying Automatic Cleaning Fees
- Collecting Excess Deposits Above the One-Month Cap
- Deducting for Pre-Existing Damage
- Withholding the Deposit in Bad Faith
