Tenant Security Deposit
The most common disagreement between landlords and tenants is over the refund of the tenant's security deposit after the tenant has moved out of the rental unit. California law therefore specifies procedures that the landlord must follow for refunding, using, and accounting for tenants' security deposits.
California law specifically allows the landlord to use a tenant's security deposit for four purposes:
· For unpaid rent;
· For cleaning the rental unit when the tenant moves out, but only to make the unit as clean as it was when the tenant first moved in
· For repair of damages, other than normal wear and tear, caused by the tenant or the tenant's guests; and
· If the lease or rental agreement allows it, for the cost of restoring or replacing furniture, furnishings, or other items of personal property (including keys), other than because of normal wear and tear.
A landlord can withhold from the security deposit only those amounts that are reasonably necessary for these purposes. The security deposit cannot be used for repairing defects that existed in the unit before you moved in, for conditions caused by normal wear and tear during your tenancy or previous tenancies, or for cleaning a rental unit that is as clean as it was when you moved in. A rental agreement or lease can never state that a security deposit is "nonrefundable."
Under California law, 21 calendar days or less after you move, your landlord must either:
· Send you a full refund of your security deposit, or
· Mail or personally deliver to you an itemized statement that lists the amounts of any deductions from your security deposit and the reasons for the deductions, together with a refund of any amounts not deducted.
The landlord also must send you copies of receipts for the charges that the landlord incurred to repair or clean the rental unit and that the landlord deducted from your security deposit. The landlord must include the receipts with the itemized statement.
Initial Inspection Before Tenant Moves Out
A tenant can ask the landlord to inspect the rental unit before the tenancy ends. During this "initial inspection," the landlord or the landlord's agent identifies defects or conditions that justify deductions from the tenant's security deposit. This gives the tenant the opportunity to do the identified cleaning or repairs in order to avoid deductions from the security deposit. The tenant has the right to be present during the inspection.
The landlord must perform an initial inspection as described in this sidebar if the tenant requests it, but cannot make an initial inspection unless the tenant requests it. However, the landlord is not required to perform an initial inspection if the landlord has served the tenant with a three-day notice (an eviction notice).
Final inspection
The landlord may perform a final inspection after the tenant has moved out of the rental. The landlord may make a deduction from the tenant's security deposit to repair a defect or correct a condition:
· That was identified in the inspection statement and that the tenant did not repair or correct; or,
· That occurred after the initial inspection; or
· That was not identified during the initial inspection due to the presence of the tenant's possessions.
Any deduction must be reasonable in amount, and must be for a purpose permitted by the security deposit statute.Twenty-one calendar days (or less) after the tenancy ends, the landlord must refund any portion of the security deposit that remains after the landlord has made any lawful deductions.
