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California governor signs bill limiting security deposits to one month’s rent

October 18, 2023

By JOSH FRIEDMAN

California Gov. Gavin Newsom last week signed into law a bill that will prohibit landlords from making renters pay a security deposit that is more than one month’s rent. 

Eleven other states in the United Dtates limit security deposits to one month’s rent, said Assemblyman Matt Haney (D-San Francisco). Haney authored the legislation, Assembly Bill 12, which he says will stop the practice of California landlords charging amounts two or three times monthly rent as a security deposit. 

“Massive security deposits can create insurmountable barriers to housing affordability and accessibility for millions of Californians,” Haney said in a statement. “Despite skyrocketing rents, laws on ensuring affordable security deposits haven’t changed substantially since the 1970’s. The result is that landlords lose out on good tenants and tenants stay in homes that are too crowded, unsafe or far from work or school. 

“This new law is a simple common sense change that will have an enormous impact on housing affordability for families in California, while also balancing a landlord’s need to protect themselves against potential liability.”

Landlords who own no more than two properties with a total of four units or less are exempt from the security deposit limit in AB 12.


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We need to have a bill that limits the Governors income not to exceed $100.000 per year. Increases to be 2% per year.


7

This law only affect the common residential housing units (ha ha). It does not affect the rentals around government buildings where hourly rents are common and where these great ideas are discussed.


0

As a property owner the security deposit is my lifeline to make sure my units are maintained. I would rather charge less rent and have a high deposit. Kevin Rice you obviously don’t own property last year alone one unit cost me 35,000 to put it in a habitable condition his deposit was 1,300. They didn’t even bother to try and cleanit because it would have cost them more than their deposit to do so. By the way you who rent and trash your units are very much affecting the future of you and other renters. Property owners do not experience this when they turn their property into vacation rentals.


28

So the first month’s rent is twice the second month’s rent to offset “rental preparation costs”. The deposit is equal to the first month’s rent.


1

This will probably deter some landlord’s from renting out to tenants and instead rent it out as a vacation home on airbnb and vrbo.


33

Exactly, this is ANOTHER poor idea from the “left of center”. Okay intentions but lousy self defeating policy.


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