As a landlord in San Diego, it’s crucial to stay on top of California’s tenant security deposit laws. Here are some key points to keep in mind:
Stick to the Rules
Compliance with California Civil Code Section 1950.5 is a must to avoid headaches like lawsuits or fines. Make sure you’re handling security deposits correctly from start to finish.
Deposits Are Refundable
Remember, there’s no such thing as a “non-refundable” deposit. It belongs to the tenant, but you can use it for specific expenses when they move out. If you sell the property, make sure to transfer the deposit to the new owner.
Recent Changes
Starting July 1, 2024, deposit limits have changed. The max will shift from two months’ rent (or three for furnished units) to just one month, with some exceptions for small landlords.
Keep Good Records
Document everything. Take photos and use a detailed checklist at move-in and move-out. This helps protect you if any disputes arise.
Offer Pre-Move-Out Inspections
When tenants plan to leave, offer them a pre-move-out inspection. They have the right to know what might be deducted from their deposit. This inspection should be within two weeks before they move out.
Return Deposits Promptly
Within 21 days of move-out, return the security deposit with an itemized list of any deductions over $125. Include receipts or estimates for any repairs.
What You Can Deduct
You can deduct for unpaid rent, tenant-caused damage (not normal wear and tear), and cleaning costs.
Penalties for Non-Compliance
If you don’t follow the rules, you could owe the tenant up to three times the deposit if you act in bad faith. So, be diligent!
Local Rules and Military Protections
Check local San Diego regulations for extra requirements, and be aware of special protections for military tenants.
Need Help?
For tricky situations, consulting a landlord attorney can be a smart move.
Disclaimer: This information is not legal advising by or on behalf of Key Property Management INC. If you have any questions or concerns regarding the information presented please consult an attorney.
