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: 1/16/2020

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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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