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 instead require a landlord to provide the tenant a copy of the itemized statement and return the security's remaining portion in the manner the security was received or requested by the tenant for the return of the security's remaining portion. If returning the security's remaining portion by mail, the bill would require the landlord to return the security's remaining portion and provide a copy of the itemized statement by certified mail. If returning the security's remaining portion by electronic funds transfer, the bill would require the landlord to deposit the security's remaining portion to a bank account or other financial institution designated by the tenant and provide a copy of the itemized statement to an email account provided by the tenant. If the landlord received the security by electronic funds transfer, the bill would require the landlord to return the security's remaining portion by electronic funds transfer and provide the tenant the copy of the itemized statement pursuant to these provisions, upon the tenant's request.

Statutes affected:
AB 414: 1950.5 CIV
02/04/25 - Introduced: 1950.5 CIV