For security collected on or after July 1, 2024, California generally limits a residential security deposit to one month's rent in addition to the first month's rent. A qualifying small landlord may charge up to two months' rent, but the exception has ownership and unit-count requirements and does not apply to a prospective tenant who is a service member.
The general cap
Civil Code section 1950.5 generally prohibits a landlord from demanding or receiving more than one month's rent as security, in addition to the first month's rent paid before occupancy. The rule applies to security collected or demanded on or after July 1, 2024.
Calling the payment something else does not necessarily remove it from the definition of security. The statute broadly covers payments, fees, deposits, charges, and certain advance rent used for the protected purposes.
The qualifying small-landlord exception
A landlord may demand up to two months' rent in security only when the landlord is a natural person, or a qualifying limited liability company made entirely of natural persons, and owns no more than two residential rental properties that collectively include no more than four rental units.
Family trusts can fit the statute's natural-person definition when the listed relationships and trust requirements are satisfied. Because ownership structures can be complex, seek legal advice before assuming the exception does or does not apply.
Additional protection for service members
The two-month small-landlord exception does not apply to a prospective tenant who is a service member. The statute also contains notice and six-month return protections when a service member is charged a higher than standard or advertised security for specified risk factors.
Service members should preserve the advertisement, written explanation, lease, payment proof, and the contractual date for returning any additional security.
Build a deposit calculation
A calculation can reveal whether the issue is the amount, the classification of a fee, the effective date, or the claimed exception. Keep those questions separate.
- Monthly rent when the tenancy began
- First month's rent paid
- Every additional fee or deposit paid before occupancy
- How the lease labels each payment
- Landlord ownership information relevant to any exception
- Payment date and whether it predates July 1, 2024
Local rules and specific programs may add context
Local ordinances and subsidized housing programs may provide additional requirements or protections. The statewide cap is a starting point, not a substitute for reviewing the rules that apply to a particular rental.
Clear answers before your next step.
Can a California landlord charge two months' rent as a deposit?+
Only a qualifying small landlord may generally use the two-month exception, and it does not apply to prospective tenants who are service members.
Does the one-month cap apply to old deposits?+
The current statutory cap does not apply to security collected or demanded before July 1, 2024. Other rules still govern how that deposit is held and returned.
Can a fee be treated as part of the security deposit?+
Potentially. The statute defines security broadly. The purpose and timing of the payment can matter more than the label used in the lease.
Official sources used for this guide
This article provides general self-help information for California renters. It is not legal advice, does not create an attorney-client relationship, and does not predict the outcome of a dispute. Rules and local protections can change.
