Effective July 1, it is now illegal for landlords in California to charge more than one month’s rent for a security deposit. Assembly Bill 12, now a law, caps security deposits to one month—ending the practice of landlords charging two or three times the monthly rent as a security deposit.
California now becomes the 12th state in the U.S. to have a law limiting security deposits.
The new law, authored by Assemblymember Matt Haney, is intended to address housing accessibility and affordability. There are few exemptions, though, including landlords who own only two properties with no more than four units for rent.
And while the change may be good news for renters, not all landlords are thrilled with the new law. The California Apartment Association commented that, “further limiting a property owner’s ability to financially cover property damage or unpaid rent is an unfair imposition for rental housing providers.”
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