California renters can rejoice! A new law, Assembly Bill 12 (AB 12), has slashed the maximum security deposit landlords can demand to just one month’s rent.
This significant shift offers welcome relief to tenants struggling with upfront housing costs, particularly in California’s notoriously expensive rental market.
As per to the source cbsnews Previously, landlords were allowed to charge up to two months’ rent as a security deposit for unfurnished units and a whopping three months’ rent for furnished ones.
This often posed a substantial financial hurdle, especially for first-time renters or those on tighter budgets. AB 12 effectively cuts that burden in half, making it easier for renters to secure housing without a significant upfront financial strain.
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It’s important to note a small exception exists. Landlords who are natural persons or limited liability companies owning only two residential properties with a maximum of four units for rent can still request a two-month deposit.
However, this exemption applies only if the landlord meets these specific ownership limitations.
The new law is a significant victory for tenants’ rights advocates who have long argued that previous security deposit limits were excessive and placed undue strain on renters. With AB 12 in effect, securing a new rental apartment in California should become a slightly less stressful experience.