California to limit security deposits to 1 month’s rent
Calif. governor Gavin Newsom signed Assembly Bill 12 by Assemblymember Matt Haney. AB12 goes into effect on July 1, 2024 which will limit security deposits to 1 month’s rent. According to Haney, this would stop the practice among certain landlords to charge two or even three times the monthly rent as a security deposit. 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. 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.
Kong Property Management Group provides property management and leasing services to the greater part of Silicon Valley. We specialize in single-family homes, condos, townhomes, duplexes, as well as apartment buildings. Based in San Jose, Kong Property Management Group is a local and family-owned business with over 15 years of combined experience in residential property management, real estate sales, and appraisal.