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California Security Deposit Deductions After Moving Out

Oct 9
4 min read

Moving out is expensive enough without an unexpected bill for painting, carpet replacement, or cleaning. For landlords, the challenge is documenting legitimate costs and returning the balance on time. For tenants, it is understanding whether the charges match the condition they actually left behind.


California's residential security-deposit rules address both the reason for a deduction and the records supporting it. Start with these questions when reviewing a move-out accounting.


What a landlord can deduct


Permitted uses include unpaid rent, repairing damage caused by the tenant or the tenant's guests beyond ordinary wear, and necessary cleaning to restore the unit's original level of cleanliness. Certain costs involving furniture or other personal property may also qualify if authorized by the rental agreement. Only reasonably necessary amounts may be retained. California Civil Code section 1950.5(b), (e)


An invoice alone does not establish that a tenant owes the charge. The work may address an older defect, ordinary aging, or an improvement for the next occupant. Professional cleaning also cannot be required automatically; it must be reasonably necessary under the statutory standard. California's security-deposit legislation, AB 2801


Ordinary wear and tenant damage


Compare the unit's condition at move-in and move-out, considering the tenancy's length and the item's age. Gradual carpet wear and minor wall marks raise different questions from a substantial tear or a broken fixture.


For example, imagine a landlord replaces an aging carpet after a tenant moves out. A replacement invoice shows the expense, but it does not establish why replacement was necessary or whether the tenant should bear the entire cost. Photos, installation records, and evidence of any remaining useful life help evaluate a fair charge. There is no universal statutory schedule that makes every carpet or paint dispute come out the same way. California Department of Real Estate's move-out guide


What must happen within 21 days


No later than 21 calendar days after the tenant vacates, the landlord must furnish an itemized accounting and return any remaining deposit. Repair and cleaning deductions generally require supporting records. When the landlord or an employee performs the work, those records must describe the work, time spent, and reasonable hourly rate. California Courts' security-deposit guide


Limited circumstances permit a good-faith estimate: a landlord's or employee's repair cannot reasonably be completed within 21 days, or third-party documentation has not arrived. An estimate based on missing third-party records must include the service provider's name, address, and telephone number. The landlord must provide the required final accounting, documents, and any further refund within 14 calendar days after completing the repair or receiving the documentation, as applicable. An estimate does not permit indefinite delay. DRE's move-out guide


Current law also contains specific refund and delivery rules for electronic payments and multiple adult tenants. Confirm the applicable method and required agreements; do not assume every deposit should be returned by a check to one roommate. Civil Code section 1950.5(h)(1)


When photographs are required


The rules phased in during 2025:


  • Beginning April 1, 2025, landlords must photograph the unit within a reasonable time after possession is returned, before repair or cleaning work charged against the deposit, and within a reasonable time after that work is completed.

  • For tenancies beginning July 1, 2025, or later, landlords must also take photographs immediately before or at the start of the tenancy.


For repair or cleaning deductions, the accounting generally must include the required photographs and cost explanation. Photos can be supplied by mail, email, flash drive, or an online viewing link. AB 2801, section 1950.5(g), (h)(2)(D)


Documentation exceptions apply when repair and cleaning deductions together total $125 or less, or a tenant signs a qualifying waiver. Even then, the tenant can request documentation within 14 calendar days after receiving the accounting; the landlord must comply within 14 calendar days after receiving the request. These exceptions do not erase the separate photo-taking duty. Civil Code section 1950.5(g), (h)(4)-(5)


How to prevent or address a dispute


Before moving, tenants should consider requesting the initial inspection available under California law. Subject to statutory exceptions, landlords must give written notice of that option. The inspection occurs no earlier than two weeks before the tenancy ends and can give the tenant an opportunity to address identified conditions. DRE's move-out guide


Both sides should retain the lease, deposit proof, original photographs, inspection statements, receipts, and communications. Record when possession was returned. Tenants should provide a forwarding address and save the accounting's envelope or electronic delivery information. Landlords should connect each charge to a documented condition and a reasonable cost.


If disagreement remains, identify the disputed items in writing and request the supporting records. Small claims or another civil proceeding may be available. Bad-faith retention can support statutory damages of up to twice the deposit, in addition to actual damages; an extra award is not automatic. California Courts' security-deposit guide


Learn more about Law Guardian, APC's work with California landlord-tenant disputes, or contact the firm for help assessing your security-deposit issue.


This article provides general information, not legal advice, and does not create an attorney-client relationship. The applicable law and your specific circumstances may affect your rights.

 
 
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