California Security Deposit Exemption Disclosure

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“Small Landlords” may charge up to 2 months’ rent for the security deposit. Landlords who qualify for this exemption should use this disclosure.

Document Last Modified: 7/27/2024

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California Security Deposit Regulations: Exemption for Small Landlords

As of July 1, 2024, California Landlords may not charge more than 1 month’s rent for the security deposit for furnished or unfurnished rental units.

California Assembly Bill 12 provides an exemption to this requirement for “Small Landlords.” Under the new Law, a “Small Landlord” is defined as a Landlord who:

  • Owns no more than 2 residential rental properties that include no more than 4 dwelling units; and
  • Holds the properties as a natural person, an LLC where all members are natural persons, or as a family trust.

Landlords who meet this qualification may charge up to 2 months’ rent for the security deposit.

Any Landlord who qualifies for this exemption and charges 2 months’ rent should provide Tenants with this Exemption Disclosure documenting that they fall into the category of Small Landlord.

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California State Specific Documents