California Civil Code §1950.5 governs security deposits for residential rentals. The law is specific about what landlords can deduct and what they cannot. Most deposit disputes come down to landlords deducting for things California law does not permit them to deduct for — and tenants not knowing the difference.
What Landlords Can Deduct
Landlords can deduct for: unpaid rent, damage beyond normal wear and tear, cleaning if the unit was left less clean than it was received, and in some cases future rent if the lease allows. That is an exhaustive list — not a starting point for creative accounting.
What Landlords Cannot Deduct
Normal wear and tear is not deductible. Paint that fades over a multi-year tenancy is normal wear and tear. Carpet that wears in traffic paths over years is normal wear and tear. Small scuffs on walls are normal wear and tear. The question is whether the condition resulted from ordinary use or from damage beyond what normal use causes.
The Itemization Requirement
The landlord must provide an itemized statement of deductions with copies of receipts for all charges over $125 within 21 days of vacating. Charges without receipts can be challenged. A statement that simply says “cleaning: $400” without a receipt from a cleaning company is legally deficient.
Bad Faith Withholding
A landlord who withholds deposits in bad faith — knowingly making improper deductions — can be liable for up to twice the wrongfully withheld amount as a penalty, plus the actual deposit. Document everything before you move out and keep copies of all communications.
Educational use only. Not legal advice. Justice Foundation.
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