New Updates on California’s Rental Security Deposit Law (AB12)

Attention California landlords and tenants! Starting July 1, 2024, the new AB12 law introduces significant changes to rental security deposits. Here’s a brief overview to keep you informed:

Key Points of AB12:

• Standard Cap: Security deposits are now capped at one month's rent for most rental properties.
• Exception for Certain Landlords: Landlords who are individuals or part of an all-individual LLC, owning no more than two properties with up to four units in total, can charge up to two months' rent.
• Special Rule for Service Members: Active service members are entitled to a maximum deposit of one month's rent, regardless of the property type.
• Pet and Last Month’s Rent: The law does not allow additional deposits for pets or last month’s rent, but reasonable pet rent is permissible.

This law standardizes security deposit practices, aiming to make rental processes clearer and fairer. If you’re planning to lease or renew your rental agreement, it’s crucial to understand these new regulations to ensure compliance and streamline your rental transactions.

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