Security Deposit Article
Security deposit disputes are one of the most common issues in landlord/tenant law. Many landlords will refuse to return any part of the deposit and will ignore requests from the tenant to return the deposit. Fortunately, California law provides many avenues that can help a tenant recover their deposit.
California Civil Code 1950.5
California Civil Code 1950.5 is the code that deals with security deposits. It’s a long code so we’ll only discuss the relevant parts.
How much can a landlord charge for a security deposit?
A landlord can only charge twice the rent for a security deposit. This is absolute. Landlords often charge a “pet deposit” or “child deposit” in addition to the normal security deposit. Landlords will claim that this deposit is to cover “extra” damages caused by pets of children. However, California Law does not allow for a special “pet” or “child” security deposits. Landlords can charge two time the monthly rent, period.
Moving In
Upon moving into a new residence a tenant should take the time to walk through the entire premises and note any existing damages. Tenants should take pictures and videos of any previous damages and write them down. This obviously will protect tenants from a landlord trying to charge them for damages that they did not cause.
Pre-Move out inspection
After a tenant has given a landlord his 30 day move out notice IN WRITINGthe landlord must notify the tenant IN WRITING of the tenants right to a pre move out inspection. The inspection must take place at least two weeks before the tenants move out date. During this inspection, the landlord will come to the premises and point out any damages that need to be repaired. The landlord must then give the tenant an itemized list of what needs to be repaired or cleaned.
Return of the Security Deposit
After the tenant has vacated the premises the landlord can begin repairs. The landlord must return either the full security deposit or an itemized list of repairs done and how much each repair cost. If the landlord fails to do either one of these, he forfeits the right to the security deposit and must return the deposit in full to the tenant. The tenant must leave an address where the landlord can send the itemized list or the security deposit.
California Civil Code 1950.5 also contains a bad faith claim that is very favorable to tenants. It says that if a landlord is retaining the security deposit and not using it to repair the premises or is exaggerating the cost of repairs, the court can award punitive damages of up to two times the amount of the original deposit. Therefore if a security deposit if $4000 and a court finds a landlord acted in bad faith, they can award the tenant the original security deposit of $4000 plus an additional $8000 in bad faith damages for a total of $12,000.
Many landlords are either unaware of this rule or purposefully ignore it. They often try to intimidate tenants and refuse to return the deposit. However, with California Civil Code §1950.5 tenants have a great weapon with which to enforce their rights.