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

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.

Customize online in minutes and attach as an addendum to your California Lease Agreement.

California State Specific Documents