ANSWER: Residential property is broadly defined to include all dwellings. The amount a landlord may charge for a security deposit is highly regulated. Residential landlords are limited to a maximum-security deposit equal to two month’s rents for unfurnished units and three month’s for furnished units (Cal. Civ. Code § 1950.5(c)). These limits cannot be waived by the tenant. While the landlord may describe some of the security deposit as “last month’s rent,” “cleaning deposit” or “pet fee,” the landlord may not collect or demand any additional amounts for these categories. (Cal. Civ. Code § 1950.5(c).)
However, a landlord is permitted to increase the deposit by one-half of one month’s rent when a landlord is accepting a tenant with a waterbed. In that situation, the landlord is also permitted to charge a reasonable fee for administrative costs. (Cal. Civ. Code § 1940.5(g).)
In addition to the security deposit, a landlord may collect the first month’s rent in advance. Beyond the first month’s rent, requiring a greater advance rent payment is permissible only if (1) the amount pre-paid is six months or more rent and (2) the term of the lease is six months or longer. (Cal. Civ. Code § 1950.5(c).)
Furthermore, landlords may also charge a nonrefundable application screening fee. This permissible fee was limited to $30 (in 1996) but may be increased annually commensurate with an increase in the Consumer Price Index after January 1, 1998, in 2012, the maximum screening fee could not exceed $44.51. The application screening fee may not exceed the “actual out-of-pocket costs of gathering information concerning the applicant.” (Cal. Civ. Code § 1950.6(a).)
