California Security Deposit Law
What landlords in California need to know about deposit limits, refund deadlines, interest, and penalties for getting it wrong.
Deposit cap
1 month's rent (2 months for landlords who own no more than 2 residential units, and unless certain shared-housing rules apply)
Refund deadline
21 days
Interest required?
No
No statewide requirement, but some cities (e.g., San Francisco) mandate annual interest on deposits.
Separate account?
Not required
Penalty for noncompliance
Bad-faith retention can expose the landlord to up to twice the deposit in damages.
Statute: Cal. Civ. Code § 1950.5
This page summarizes general state-level rules as of 2026 and does not cover city or county ordinances, which can be stricter. Verify against the statute cited above or with a local attorney before relying on it. See all states.