CaliforniaAB 4142025-2026 Regular SessionHouseWALLET

Residential tenancies: return of security.

Sponsored By: Gail Pellerin (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 5 benefits, 0 costs, 2 mixed.

One-month deposit cap, small-owner exception

The law caps most security deposits at one month’s rent, plus the first month’s rent. Small landlords who own no more than two properties with four units total can ask for up to two months’ rent. Landlords may still take at least six months’ rent in advance for leases of six months or longer. The one‑month cap does not apply to deposits taken before July 1, 2024.

21-day deposit refunds and payout rules

Within 21 calendar days after you move out, the landlord must send an itemized statement and return the rest of your deposit. If the landlord took your security or rent by electronic payment, the refund must be sent electronically to your chosen account or another agreed method. If more than one adult rented and there is no written agreement on how to pay, the landlord must issue one check payable to all adult tenants.

Pre-move-out inspection and charge limits

You can ask for an initial inspection before you move out. The landlord must give at least 48 hours’ written notice (unless you sign a waiver) and let you fix problems. If the inspection happens and your things did not block the view, the landlord cannot charge your deposit for items not listed during that inspection. The landlord may still charge for items you did not fix or for damage after the inspection.

Stronger penalties and easier court path

A lease cannot label any part of a security deposit as nonrefundable. If a landlord keeps your deposit in bad faith, a court can award up to twice the deposit amount, plus your actual damages. You can take deposit disputes to small claims court if your claim fits the small‑claims money limits. You can prove a deposit with credible evidence like canceled checks, receipts, your lease, past statements, or a sworn statement.

Your deposit when the property sells

When a rental is sold or the landlord’s ownership ends, the old landlord must either transfer your remaining deposit to the new owner and tell you, or return it to you with an accounting. If that does not happen, the new owner is jointly responsible for paying you and cannot demand a new deposit until you get your money or a full accounting.

Photos and proof for deposit deductions

Starting April 1, 2025, landlords must take photos after you return the unit and before repairs or cleaning, and again after the work. For leases that start July 1, 2025 or later, landlords must also photograph the unit at move‑in. When money is taken from your deposit, the landlord must send proof: photos, a written explanation, receipts for materials, and either a contractor bill and contact info or, if the landlord did the work, a description, time spent, and hourly rate. If repairs are not done or invoices aren’t ready within 21 days, a good‑faith estimate may be used, but final papers must be sent within 14 days after the work is done or documents arrive. If repair and cleaning deductions total $125 or less, documents are not required unless you ask within 14 days (or unless you signed a valid end‑of‑lease waiver).

Extra deposit rules for service members

Starting April 1, 2025, if a landlord charges a service member extra deposit due to credit or housing history, the landlord must give a written explanation at or before signing. If the service member is not behind on rent, the extra amount must be returned within six months. The lease must list the return date.

Sponsors & Cosponsors

Sponsor

  • Gail Pellerin

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 204 • No: 1

House vote 9/3/2025

Item 114 — Assembly AFLOOR

Yes: 76 • No: 0

Senate vote 9/2/2025

Item 332 — Senate SFLOOR

Yes: 39 • No: 0

legislature vote 6/24/2025

Vote in CS53

Yes: 11 • No: 0

House vote 3/20/2025

Item 153 — Assembly AFLOOR

Yes: 66 • No: 1

legislature vote 3/11/2025

Vote in CX13

Yes: 12 • No: 0

Actions Timeline

  1. Chaptered by Secretary of State - Chapter 340, Statutes of 2025.

    10/6/2025Senate
  2. Approved by the Governor.

    10/6/2025legislature
  3. Enrolled and presented to the Governor at 3 p.m.

    9/9/2025legislature
  4. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 76. Noes 0. Page 2874.).

    9/3/2025House
  5. In Assembly. Concurrence in Senate amendments pending.

    9/2/2025House
  6. Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0. Page 2395.).

    9/2/2025Senate
  7. Read second time. Ordered to third reading.

    8/20/2025Senate
  8. Read third time and amended. Ordered to second reading.

    8/19/2025Senate
  9. Read second time. Ordered to third reading.

    7/9/2025Senate
  10. Read third time and amended. Ordered to second reading.

    7/8/2025Senate
  11. Read second time. Ordered to third reading.

    6/26/2025Senate
  12. From committee: Do pass. (Ayes 11. Noes 0.) (June 24).

    6/25/2025Senate
  13. From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on JUD.

    6/11/2025Senate
  14. Referred to Com. on JUD.

    5/7/2025Senate
  15. In Senate. Read first time. To Com. on RLS. for assignment.

    3/20/2025Senate
  16. Read third time. Passed. Ordered to the Senate. (Ayes 66. Noes 1. Page 773.)

    3/20/2025House
  17. Read second time. Ordered to Consent Calendar.

    3/13/2025House
  18. Read second time and amended. Ordered returned to second reading.

    3/12/2025House
  19. From committee: Amend, and do pass as amended. To Consent Calendar. (Ayes 12. Noes 0.) (March 11).

    3/11/2025House
  20. Referred to Com. on JUD.

    2/18/2025House
  21. From printer. May be heard in committee March 7.

    2/5/2025House
  22. Read first time. To print.

    2/4/2025House

Bill Text

  • Chaptered

    10/6/2025

  • Enrolled

    9/5/2025

  • Amended Senate

    8/19/2025

  • Amended Senate

    7/8/2025

  • Amended Senate

    6/11/2025

  • Amended Assembly

    3/12/2025

  • Introduced

    2/4/2025

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