Patty Manzi’s Tri-Valley Real Estate Blog

The most common disagreement between tenants and landlords is over the refund of the security deposit after a tenant has vacated a rental/leased unit.  California law specifies procedures that the landlord must follow for refunding, using, and accounting for the tenants’ security deposit. 

Under California law the landlord is allowed to use a tenants’ security deposit for the following  four (4) purposes:

1. For unpaid rent
2. For cleaning the rental unit when the tenant moves out, BUT ONLY to bring the unit up to the level of cleanliness the unit was when the tenant first moved in
3. For repair of damages, other than normal wear and tear, that is caused by the tenant or the tenant’s guests
4. For the cost of restoring or replacing furniture, furnishings, or other personal property items (including keys), that were included with the original rental/lease agreement, other than normal wear and tear.

A landlord can withhold only the amounts that are reasonably necessary for these purposes.  The security deposit cannot be used for making repairs on things that existed before the tenant moved in, or for conditions caused by normal wear and tear.  

A rental agreement or lease can NEVER state that a security deposit in non-refundable.

Under California Law, 21 calendar days or less from day you move out, the landlord must do the following:

1. Send you a full refund of your security deposit.
2. Mail or personally deliver an itemized statement that lists the amounts of any deductions from your deposit, the reason for the deductions, along with a refund of any amounts not deducted.   The landlord must also send you copies of receipts for any charges the landlord personally incurred to repair or clean the rental/leased unit.

The landlord must send the itemized statement, copies of invoices or receipts, and any estimates to you at the forwarding address that you provide.  If you do not provide a forwarding address, the landlord is obligated to send the documents to the address of the rental unit you moved out of.    The landlord is also not required to send copies of any documentation if the repairs/cleaning costs are less than $126.

If you have a dipute about your refund, you must contact the landlord IMMEDIATELY by phone or e-mail, but you should always follow this up with a formal letter.  There are many agencies you can contact for assistance.  For more information contact the California Department of Consumer Affairs, www.dca.ca.gov.