Residential Security Deposit Regulations in California
Have you ever wondered how much you should or could charge your renters for a security deposit? In California, the Residential Tenant/Landlord Law dictates that amount. The limits change depending on whether the unit is furnished or unfurnished. For an unfurnished unit, the maximum combined deposit amount that can be charged is two times (2x) the monthly rent. This means that if, for example, the monthly rent is $2000 and you want to charge for a standard deposit, a key deposit, and a pet deposit, the combined amount cannot exceed $4000. If the property is furnished, then the combined deposit limit climbs to three times (3x) the monthly rent, or $6000 for a unit with $2000 monthly rent.
At 24 Hour Property Management, we recommend to our investors that they charge deposits as follows: (1) standard deposit sum equal to one month’s rent; (2) $150 for keys/remote deposit; and, (3) $500 per animal if they are accepting pets. However, often an investor has different deposit requirements, which we accommodate as long as it is compliant with the Residential Tenant/Landlord Law.
Contact 24 Hour Property Management, Inc.
We’ve helped hundreds of investors rent properties over the years and collected as many deposits on behalf of those investors. If interested in discussing deposits or anything related to property management, you can reach us seven days a week at 949-409-8585 or you can check us out on the web at 24hourpm.com.