A new California state law went into effect yesterday, limiting the amount a landlord can ask a renter for a security deposit.
A security deposit is usually held to secure against potential damage, cleaning, or unpaid rent from a renter. These are typically the same amount as one month’s rent – however “first month, last month, and a deposit” can be common in parts of california, requiring a renter to come up with triple the first month’s rent just to get into a place.
Assembly Bill 12 – which went into effect on July 1st – prevents most landlords from charging more than one month’s rent for this deposit, although in many cases you can still be asked for twice that amount.
California joins 11 other states to put the limit on landlords. As with any new law, there are exceptions. The new law doesn’t apply to California lease agreements signed on or before July 1st. Already existing lease agreements won’t be affected, either.
Some exceptions apply to smaller landlords who own no more than two properties and a total of four units, the bill says. Those landlords will be able to request up to two months’ rent under the new law.
