CAL LEG Tenancy, Security Deposits


On Sep. 9, CAL LEG enrolled bill to strengthen security deposit law.


  • CAL LEG enrolled Bill AB 2801 related to tenancy and demand for security deposits.
  • Strengthens security deposit law by ensuring that landlords do not subsidize improvements to their rental properties with a former tenant’s security deposit.
  • Bill amends Section 1950.5 of the Civil Code re tenancy, CAL LEG 3-4-5-2-1950.5.
  • Highlights
  • Landlords must not subsidize improvements to rental properties with tenant’s deposit.
  • Claims against the tenant or the security for materials or supplies and for contractor work limited to the amount needed to restore premises to condition before tenancy.
  • Landlord will not require tenant to cover professional carpet cleaning unless needed to return premises to the condition it was in at inception, exclusive of ordinary wear/tear.
  • For tenancies that on/after Jul. 1, 2025, landlord will take photographs before tenancy.
  • Additionally, as of Apr. 1, 2025, the landlord will take photographs of the unit within a reasonable time after possession of the unit is returned to the landlord, before repairs.
  • If a deduction is made for repairs or cleanings, the landlord will provide photographs taken with a written explanation of the cost of the allowable repairs or cleanings.
  • Landlord not be entitled to claim any amount of the security if he is acting in bad faith.
  • On or after April 1, 2025, landlord decides to charge a service fee, should issue written statement of the higher security and an explanation why amount is being charged.
  • The additional amount of security will be returned to the tenant after no more than six months of residency if the tenant is not in arrears for any rent due during that period.
  • Legislative History
  • On Feb. 15, 2024, bill introduced in Assembly; on May 13, 2024, bill passed Assembly.
  • On May 13, 2024, bill delivered to Senate; on Aug. 27, 2024, bill passed in Senate.
  • On Aug. 28, 2024, bill sent to Assembly; on Aug. 28, 2024, amendments concurred in.
  • On Sep. 9, 2024, bill was enrolled and was sent to the governor for review.
  • Effectiveness
  • Section 2.5 of bill incorporates amendments from both this bill and SB 611, #225215.
  • Sec 2.5 becomes operative only if both bills are enacted and effective on/before Jan. 1, 2025, each bill amends CAL LEG 3-4-5-2-1950.5, and this bill is enacted after SB 611.
  • If Section 2.5 becomes operative, Section 2 of this bill will not become operative.
  • Sep. 19, 2024 CAL LEG Governor Approval
  • On Sep. 19, 2024, CAL LEG governor approved AB2801, Ch. 280 Statutes of 2024.

Regulators CAL LEG
Entity Types CNSM; Corp; MG Orig
Reference Ch 280, 9/19/2024; Bill AB2801, 9/9/2024; Citation: CAL LEG 3-4-5-2-1950.5;
Functions Compliance; Financial; Legal; Operations
Countries United States of America
Category
State
Products Mortgage
Regions Am
Rule Type Final
Rule Date 9/9/2024
Effective Date 1/1/2025
Rule Id 225445
Linked to Rule :225215
Reg. Last Update 9/19/2024
Report Section US Consumer

Last substantive update on 09/20/2024