California to Limit Security Deposits to 1 Month’s Rent Under New Law Signed by Newsom
Renters in California will no longer be asked for a security deposit larger than one month’s rent, under a bill signed into law by Gov. Gavin Newsom.
“Massive security deposits can create insurmountable barriers to housing affordability and accessibility for millions of Californians,” Haney said in a statement. “Despite skyrocketing rents, laws on ensuring affordable security deposits haven’t changed substantially since the 1970’s.”
The Bay Area has long been one of the most expensive areas in the country for renters. According to Zillow, the median rent for all bedrooms and property types is currently $3,495 a month in San Francisco, $3,170 in San Jose and $2,366 in Oakland.
Haney cited data that more than half of renters, 53%, indicate that they are able to afford their rent but are unable to get an apartment because they are not able to come up with two month’s rent as a deposit.
“This new law is a simple common sense change that will have an enormous impact on housing affordability for families in California, while also balancing a landlord’s need to protect themselves against potential liability,” the assemblymember went on to say.
Small landlords that own only two properties with a total of no more than four units are exempt from AB12. Landlords would still be able to seek damages from tenants responsible for harm to the property that exceeds the amount of the security deposit, according to Haney.
With the new law, California joins 11 other states in capping security deposits to one month’s rent.
AB12 goes into effect on July 1, 2024.
Source: CBS News
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