California’s new security deposit law went into effect on July 1st, 2023. As a local Realtor, I want to make sure you, my valued clients, are aware of these new regulations. According to San Diego Union-Tribune, landlords can now only charge a security deposit equal to one month’s rent, with some exceptions.
This change impacts a lot of my clients. It has been common practice for landlords to charge two or even three months’ rent as a security deposit. The new law aims to make housing more accessible to low-income families and seniors.
One notable exception is for small landlords who own two properties with no more than four units. For these landlords, the deposit cap is two months’ rent, except for military service members who will still be subject to the one-month limit.
It’s important to remember that this new law doesn’t cap potential liability. This means if a tenant damages a property, a landlord can still pursue damages if the amount owed exceeds the security deposit.
As a homeowner and investor, I understand the concerns some have expressed regarding the new law. Some fear it will expose landlords to greater risks in the case of damages. It will be interesting to see how this new law unfolds and impacts the housing market.
If you have any questions about this new law and how it may impact you, please feel free to contact me at https://robertluiswallace.com/services/. I’m happy to help you understand your rights and obligations as a renter or landlord.
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