Assembly Bill 12

May 30, 2024

Assembly Bill 12

Attention landlords & tenants! Let's talk about a new law that’s about to change the way security deposits work in California. Starting July 1, 2024, Assembly Bill 12, or AB12, will limit the maximum security deposit a landlord can ask for to one month’s rent.

This law applies to new security deposits obtained after July 1, 2024. Existing deposits can remain as they are. This applies to both furnished and unfurnished properties. The old rule allowing three-months rent deposit for furnished units will be gone as of July 1st. What about pet deposits? Pet deposits count towards your one-month limit too. There are some exceptions. Landlords can ask for up to two months’ rent as a security deposit if they are an individual or part of an LLC with all natural persons, and they own no more than two residential rental properties with a combined total of four units or fewer. However, this exception doesn't apply to active service members—they will always have a one-month limit.

Let's recap the bottom line: AB12 limits security deposits to one month’s rent with specific exceptions for smaller landlords. This change applies from July 1, 2024, onwards, to all properties, furnished or not, and includes pet deposits. This isn't legal advice, so please consult an attorney for detailed guidance. Thanks for watching! For more updates and tips, give us a follow and check out our blog at See you next time!

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