Can You Keep a Tenant’s Security Deposit in California?

Published On: July 8th, 2022

Landlords in California often find themselves wondering whether they can keep a tenant’s security deposit. The answer to this question is not always straightforward, and depends on the specific situation involved. In this article, we explore the various factors that landlords must consider when deciding whether to hold onto a security deposit. We also provide some tips for avoiding disputes with tenants over security deposits.

Can You Keep a Tenant’s Security Deposit in California?

In general, California law requires landlords to return a tenant’s security deposit within 21 days of the tenant vacating the property. However, there are several exceptions to this rule. For example, if the tenant owes rent or has caused damage to the property, the landlord may withhold some or all of the security deposit.

When making the decision to withhold a security deposit, landlords must be careful to avoid violating the law. In particular, landlords must provide written documentation of any damage that has been done to the property. They must also give tenants an opportunity to remedy the situation (for example, by paying for repairs) before withholding any portion of the security deposit.

If you are a landlord in California, it is important to familiarize yourself with the law surrounding security deposits. This will help you avoid potential disputes with tenants and protect your rights as a property owner.

When in Doubt, Defer to Your Property Manager

Property managers deal with situations like these all the time, so it’s important that you defer to your manager’s advice if you think you’ll be able to keep a tenant’s security deposit.

The most common reasons landlords keep tenants’ security deposits include:

Unpaid rent
Damage to the property
Cleaning costs
Keys not returned
Early termination of the lease agreement

If you have any questions about whether you can keep a tenant’s security deposit, be sure to ask your property manager. They will be able to advise you on the best course of action based on your specific situation.

Keeping a Security Deposit for Unpaid Rent in California

One of the most common reasons landlords keep security deposits is because tenants have failed to pay rent. If a tenant owes rent when they move out, the landlord may withhold the security deposit (or a portion thereof) to cover the unpaid rent.

In order to do this, the landlord must provide the tenant with written documentation of the unpaid rent. The landlord must also give the tenant an opportunity to pay the rent before withholding the security deposit.

Keeping a Security Deposit for Damage to the Property in California

Another common reason landlords keep security deposits is because tenants have caused damage to the property. If a tenant has caused damage to the unit, the landlord may withhold the security deposit (or a portion thereof) to cover the cost of repairs.

In order to withhold a security deposit for damage to the property, the landlord must provide the tenant with written documentation of the damage.

Keeping a Security Deposit for Cleaning Costs in California

In some cases, landlords may keep a security deposit to cover the cost of cleaning the unit. This is typically only done if the tenant has left the unit in an excessively dirty condition.

In order to withhold a security deposit for cleaning costs, the landlord must provide the tenant with written documentation of the cleaning costs. The landlord must also give the tenant an opportunity to clean the unit before withholding the security deposit.

Keeping a Security Deposit for Keys Not Returned in California

If a tenant does not return all of the keys to the unit, the landlord may withhold a portion of the security deposit. The amount that can be withheld is typically equal to the cost of replacing the keys.

In order to withhold a security deposit for keys not returned, the landlord must provide the tenant with written documentation of the cost of replacing the keys. The landlord must also give the tenant an opportunity to return the keys before withholding the security deposit.

Keeping a Security Deposit for Early Termination of the Lease Agreement in California

If a tenant terminates their lease agreement early, the landlord may withhold the security deposit (or a portion thereof) to cover the cost of re-renting the unit.

In order to withhold a security deposit for early termination of the lease agreement, the landlord must provide the tenant with written documentation of the cost of re-renting the unit. The landlord must also give the tenant an opportunity to pay the amount owed before withholding the security deposit.

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