Security deposits are an essential component of the whole rental process, in California and all other states. As a landlord, you need protection in the event that a tenant somehow damages your property. They might also skip out on the last month’s rent when they’re planning to relocate. You might not be fully compensated for any losses you take, but the security deposit does provide some measure of financial relief. There are some very specific laws regarding the usage of security deposits, and when they must be returned to the tenant. Here are some of the most important California laws and guide for California landlords.
Setting the security deposit
You can set the security deposit at two months’ rent for unfurnished apartments and three months’ rent for furnished ones. You can make the deposit the maximum allowable by law, but you cannot make it non-refundable. It’s best if you keep the security deposit money in an interest-bearing account for a couple reasons. The interest benefits you, and in some cases, you must return it to the tenant. Do not spend the security deposit as it may be difficult to produce later. Contact Sunset Property Management for property management services and landlord guidance in San Diego, California.Using a security deposit
According to California state law, there are four general reasons that a landlord would be allowed to go ahead and use a security deposit:- Replacing furniture – if furniture has been damaged beyond simple repair, the security deposit can be used to replace it. Likewise, if any other element of the unit has been damaged past normal wear and tear, it can be restored or replaced with the security money.
- Post-occupant cleaning – when the tenant moves out, the unit should be thoroughly inspected for damages and cleaning requirements. If it is necessary to hire professional cleaners to restore the unit to its pre-rental condition, security money can be used for this.
- Unpaid rent – If the occupant misses one month’s rent, the deposit may cover the rental charge. If the unpaid rent exceeds the security deposit, you may legally pursue the former tenant.
- Damage repairs – the deposit can also be used to cover the cost of damages incurred during the tenant’s residence. It may be necessary to prove that the damages actually occurred during this time frame. That’s why it’s a good idea to take before and after pictures between tenants.