California Security Deposit Accounting Statement

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California has specific requirements regarding the accounting for a security deposit when a tenant vacates.

Document Last Modified: 2/10/2025

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California law specifically allows the landlord to use a tenant's security deposit for four purposes:
1. For unpaid rent;
2. For cleaning the rental unit when the tenant moves out, but only to make the unit as clean as it was when the tenant first moved in;
3. For repair of damages, other than normal wear and tear, caused by the tenant or the tenant's guests; and
4. If the lease or rental agreement allows it, for the cost of restoring or replacing furniture, furnishings, or other items of personal property (including keys), other than because of normal wear and tear.

A landlord can withhold from the security deposit only those amounts that are reasonably necessary for these purposes. The security deposit cannot be used for repairing defects that existed in the unit before the tenant moved in, for conditions caused by normal wear and tear during the current tenancy or previous tenancies, or for cleaning a rental unit that is as clean as it was when the tenant moved in.

IMPORTANT: A rental agreement or lease can never state that a security deposit is "nonrefundable."

Under California law, 21 calendar days or less after you move, your landlord must either:
1. Send you a full refund of your security deposit, or
2. Mail or personally deliver to you an itemized statement that lists the amounts of any deductions from your security deposit and the reasons for the deductions, together with a refund of any amounts not deducted.

It is important for the landlord follow procedures set out under California Code for the handling of security deposits. Complete information can be found: California Guide to Residential Tenants’ And Landlords’ Rights And Responsibilities

RETURN OF SECURITY ELECTRONICALLY AND STATEMENTS TO BE EMAILED PERMITTED: After the landlord and tenant mutually agree the landlord may deposit any remaining portion of the security deposit electronically to a bank account or other financial institution designated by the tenant AND parties may agree to the statement of security deposit to be emailed.


California Security Deposit Accounting Statement

The state of California has some very specific requirements concerning the use of the security deposit after a tenant has vacated a rental property. This California Security Deposit Accounting Statement itemizes all deposits (security, pet, key, cleaning, other) and all deductions that you intend to make from these deposits, including reasons for the deductions.

You must provide any and all former tenants with the California Security Deposit Accounting Statement within TWENTY-ONE days of termination of the lease or rental agreement if you intend to make any deductions from the tenant’s deposit(s) on the property. This is in accordance with Civil Code Sections 1950.5(b)(1)-(4) of the California Code.

Who: The landlord is required to serve the tenant with this itemized accounting statement within twenty-one days of the date that the tenant vacates the rental property. If the tenant owes a balance beyond their deposit(s), that balance will be disclosed in this document, and it will be due upon receipt of the accounting statement.

What: This document gives a complete account of the security deposit and other deposits after a tenant vacates a rental property and an inspection of the property has been completed. It will itemize all deductions and specify how much of the deposit is left or what balance the tenant still owes after the security deposit is applied to damages, unpaid rent, and other costs associated with getting the property ready for new tenants.

When: In California, you must serve this notice to your former tenants within TWENTY-ONE days of the date when they vacated your rental property. Along with this notice, you must include any remaining funds from the security deposit.

Note: To ensure that you and the tenant are on the same page and that the tenant is aware of the differences in conditions of the property before they move in and after they move out, you should use this form in conjunction with the Move In/Move Out Walk-Through Checklist.

IMPORTANT: If you do not supply your former tenants with a California Security Deposit Accounting Statement within twenty-one days of them vacating your rental property, then, in the state of California, you will be legally bound to refund them their security deposit in its entirety. Be sure to get an inspection of the property promptly after the tenant moves out. Then fill out all appropriate fields, and send this document to your tenant’s forwarding address (or hand deliver it to them) no more than 21 days after they move out of your property.

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