📢 NEW CALIFORNIA LAW: Security Deposits Capped at 1 Month's Rent – Starting July 1, 2024!

Jul 1, 20244m 26s7.8K viewsScore 75
Regulations & Compliance
intermediate
security deposit cap
AB12
California landlord laws
tenant rights
rental income
M

Summary

AI-generated

California landlords must now cap security deposits at one month's rent under AB12, effective July 1, 2024. This change aims to increase housing affordability but may lead to landlords increasing rent or facing more court cases for damages exceeding the deposit.

Key insights

  • AB12 does not apply retroactively; it only affects security deposits collected from July 1, 2024, onwards. Current tenants who have already paid a higher deposit are not affected.

Mistakes to avoid

  • Landlords might consider increasing monthly rent to compensate for the reduced security deposit amount, potentially negating the affordability benefits of the law.

Frequently Asked Questions

Curated by Learn STR by GoStudioM · Summary & key insights generated by AI · Reviewed by editorial