Existing law regulates the terms and conditions of residential tenancies, including generally limiting the amount of security that a landlord may demand or receive to an amount or value equivalent to one month's rent, as provided, and allowing a landlord to claim of the security only those amounts as are reasonably necessary for specified purposes. Existing law defines a security for these purposes as any payment, fee, deposit, or charge, including any payment, fee, deposit, or charge, except as specified, that is imposed at a tenancy's beginning to reimburse a landlord for costs associated with processing a new tenant or that is imposed as an advance payment of rent, used for any purpose. Existing law requires a landlord to provide a tenant a copy of an itemized statement, as specified, and return the security's remaining portion to the tenant by personal delivery or by first-class mail, postage prepaid, no later than 21 calendar days after the tenant has vacated the premises, as specified. Existing law authorizes a landlord and tenant to mutually agree to have the landlord deposit electronically the security's remaining portion to a bank account or other financial institution designated by the tenant or provide a copy of the itemized statement to an email account provided by the tenant.
This bill would revise these provisions to generally require the landlord to return the security by personal delivery or by check made payable to the tenant. If the landlord received the security or rental payments from the tenant electronically, the bill would instead require the tenant to return the remainder of the security electronically, as specified, unless the landlord and tenant designated another method of return, by written agreement. The bill would also instead authorize the landlord and tenant to mutually agree, as specified, to provide the itemized statement by either email to an email account provided by the tenant or mail by first-class mail, postage prepaid, to an address provided by the tenant. If multiple adult tenants reside in the unit, the bill would require the landlord to return the remainder of the security by a check made payable to all adult tenants, as specified, and provide the itemized statement by first class mail, postage prepaid, to any one of the adult tenants chosen by the landlord, unless the landlord and all adult tenants, at the commencement of the tenancy or at any time during or after the tenancy, enter into a mutual agreement containing specified provisions.

Statutes affected:
AB 414: 1950.5 CIV
02/04/25 - Introduced: 1950.5 CIV
03/12/25 - Amended Assembly: 1950.5 CIV