California Law Limits Security Deposits for Renters

A new law protecting renters from exorbitant fees took effect in California this month, barring landlords from requiring more than one month’s rent as a security deposit for new tenants.

Andrew J. Campa describes the law in the Los Angeles Times, noting that “An exception in the bill was carved out for landlords who own two or fewer properties that collectively have no more than four rental units.”

With rents rising sharply, many renters, even those with well-paying jobs, struggled to pay the deposits and fees required to rent an apartment.

Real estate lawyer Sharon Oh-Kubisch told the LA Times that the legislation could work against some tenants, as landlords often charge additional deposits for tenants with low credit scores or little rental history. Landlords could also be motivated to sue tenants for damages not covered by a lower deposit.

For Masih Fouladi, executive director of the California Immigrant Policy Center, “By capping high security deposits, AB-12 advances a measure of equity.”