Bill to cap Calif. rent deposits heads to governor's desk

AB 12 provides exemptions for small landlords but aims to remove barriers for struggling residents

The California State Legislature approved a bill capping rental security deposits so a landlord cannot charge more than the monthly rent for the deposit. Courtesy photo

SACRAMENTO — The state legislature approved a bill capping the amount of rent deposits by landlords last week.

Assembly Bill 12, authored by Matt Haney (D-San Francisco) and co-authored by Tasha Boerne (D-Encinitas) and several others prohibits landlords from charging two, or more, times the monthly rent as a security deposit, according to the bill.

The new law, which if signed by Gov Gavin Newsom, would take effect on July 1, 2024. Also, the bill applies to rental units that are furnished or unfurnished.

Haney, Horvath and three others on the Assembly Renters Caucus rent their homes and were featured in the New York Times in July regarding the issue.

So, if a unit rents for $2,000 per month, the deposit would only be $2,000 for a total of $4,000. In many cases, landlords charge twice or three times the amount of the monthly rent for a security deposit.