When can landlords withhold security deposits?

In California, landlords can withhold part or all of a tenant’s security deposit only for specific reasons outlined by law (CA Civil Code § 1950.5). Some examples of when landlords may withhold portions of a security deposit:

1. Unpaid Rent

• If the tenant owes back rent or late fees (as specified in your lease).

2. Damage Beyond Normal Wear & Tear

• Examples:

  • Holes in walls (beyond small nail holes).

  • Broken windows, doors, or appliances.

  • Stains or burns on carpets/floors.

  • Excessive water damage from tenant negligence (e.g., failure to report leaks).

• Not deductible by Landlord (i.e., normal wear and tear): Faded paint, minor scuffs, or worn carpets from normal use.

3. Cleaning Costs

• Only to bring the unit to the same level of cleanliness it was when the tenant moved in.

• Example: Removing leftover trash, cleaning heavy grime or pet stains, etc.

4. Unfulfilled/Breached Lease Obligations

• Examples: 

  • Costs to remove unauthorized alterations (e.g., painted walls, installed shelves).

  • Expenses to restore missing items (e.g., curtains, appliances included in the lease).

5. Early Termination

• If a tenant breaks their lease early without legal justification, the landlord may deduct reasonable costs to re-rent the unit (e.g., marketing, lost rent) from the security deposit.

Key Rules for Landlords in CA:

• Landlords must provide an itemized statement within 21 days of move-out that lists all deductions from the security deposit and provides evidence of such landlord costs (failure to comply results in landlord's forfeiture of the entire deposit).

• Cannot charge for "normal wear and tear."

• Landlords must return the deposit within this timeframe even if no deductions are made.

• Cannot use the security deposit for pre-existing damage (comparing move-in/move-out checklists can be helpful).

If Your Deposit Is Wrongfully Withheld, You Could:

1. Send a demand letter (certified mail) requesting repayment and citing the Civil Code.

2. File a lawsuit in small claims court (up to $12,500 in CA).

3. Potentially recover up to 2x the deposit (plus actual damages) if the landlord acted in bad faith.

   
   

If you believe your rights have been infringed or have specific questions about your own situation, schedule a consultation with Carucci Legal to determine your legal rights and the pros/cons of your various options.

Disclaimer: This blog provides general information and does not constitute legal advice. Any referenced laws or regulations may no longer be current and subject to change.