A new bill would protect California renters from paying more than a month’s rent for security deposits.
Announced during the first week of California’s new legislative session, Assembly Bill 12 would prohibit the frequent practice of landlords charging two to three times the amount of monthly rent for a security deposit.
If passed, California would be the 12th state in the county to cap security deposits.
The author of the bill, Assemblymember Matt Haney, D-San Francisco, said that in San Francisco, tenants could be subject to paying an additional $15,000 to move into a $5,000-a-month apartment — the average cost of a two-bedroom unit in the city. Those up-front fees are causing renters to take out predatory loans, go into debt or not move at all.
“Landlords lose out on good tenants and tenants stay in apartments that are too crowded or have unsafe living conditions,” Haney said in a press release. “Creating a rental deposit cap is a simple change that will have an enormous impact on housing affordability for families in California.”
Often times landlords say these extra fees help them keep up with the increasing costs of repairs for units. Haney said the bill would not prevent landlords from fining tenants who cause damage to apartments that is higher than the amount of the security deposit.
“This bill will remove a huge barrier to housing access and affordability,” said Haney. “Our state can’t just continue to do things like we always have. We need to make common sense, immediate changes to make things easier for the people of California during this housing crisis.”
What state has the worst taxes?
in 2019
# 1 California: 13.3%. It is obvious to see California topping the list as a state with the highest taxation rates. Get rid of these high taxes and maybe people can afford to buy a home. If only we could get rid of all the regulations to build them.
Someone could do a lot more damage than the cost of a months rent. I’m not sure if this is a good idea but what if the renter had to pay that into a renters insurance for damage caused. You wouldn’t get your money back but if you screwed anything up you wouldn’t get insurance again and no one would rent to you again.
The problem is no matter how much you disclose to a tenant that the deposit IS NOT THE LAST MONTH’S RENT, most tenants will not pay their last month’s rent and expect you to take it out of their security deposit. Landlords don’t hold high deposit amounts because it’s fun, they do it to cover the last month’s rent AND the damage that the tenant may have done to the property.
I know this firsthand. For some reason people think they’re giving you “first and last” when they move in. NO. No matter how many times it is stated that the deposit is NOT rent money. By making the deposit the same as the monthly rental, this problem will get worse and landlords will get screwed. Tenants won’t pay their last month and leave the place in shambles. Deposits are often much more than rent to cover this.
Pay your rent, don’t destroy the place and you get it all back. Easy peasy.
This works both ways. I when l rented a place some years ago, another tenant told the previous tenant didn’t get his deposit back for 8 month. So when l was moving out l asked for notorized statement. The landlady got very offended and said she wouldn’t pay for it, l said l would , she still refused l explained it was just prudent business practice. However, since she so adamant refused l refused to pay the last month,. however by letting her keep the deposit she came out ahead $50.00. lf she hadn’t refused l probably wouldn’t have insisted.
You’re the perfect example of why being a landlord is risky business. Thanks for sharing. You seem bitter. I guess it’s true what they say.
Sam, I always paid on time or early, I left the place in perfect condition. Why am I an example of a bad tenant, I have perfect credit and references. No, I’m not bitter, I found a much better place. What is wrong with asking for a notorized statement, it is just prudent business practice. I asked for it because of what another tenant said, and she was a horrible landlady, always screaming and never had time to fix anything, she is running a business, part of running a business is customer service.
Those who gave my comment thumbs down and to Sam, you did notice that the landlady did not loose any money, in fact she came out $50.00 ahead. She had a bad reputation, so I insisted on a notorized statement that I would get my deposit back within 21 days as required by California law, she refused. Those who gave me thumbs down perhaps you could WRITE a reply and explain what you find wrong with my comment.
Yep. What landlords request at the inception of the lease is not just a security deposit. It’s what’s known as “first, last, and security”. Plus pet deposit, if applicable.
And the reason why landlords charge it is because if the tenant skips on the last month’s rent and does a lot of damage to the unit, their only remedy is court. Which takes years, and then good luck collecting on a judgment.
Freshly elected Rep Haney is full of $hit, and he knows it.
The markets are a much better control mechanism than anything government can contrive.
Let free markets do the work and everything else will be better.
The government, especially communist governments, fails at everything.
A Landlord has a substantial investment to protect. They have to pay insurance costs, property taxes, and a whole host of risks and fees. The only thing the government is good for is sticking its nose where it never belonged.
Keep the government out of it and let market conditions prevail. This bill will create an additional housing shortage because landlords will sell or not become landlords in the first place. California’s interference is why I never became a landlord in this cesspool of a state. Politicians just don’t get it, ignorance prevails!
Government control in California is starting to look more like China or Russia and less like the USA the land of the free.
…have you seen how some renters leave their rented apts? the existing security deposits is not even close to being enough now! …we need to vote them out now… sigh
I’m not against a deposit. However some landlords are reluctant to return it, as l posted earlier. My ex husband and l use to own a couple of rentals fortunately no one trashed the place. It goes without saying of course the place should be left in good condition save for some wear and tear.
If it mine, I will do what I want. What’s all this government telling me I’m not secure in my property? Unconstitutional. Do any of you even know the constitution and what it means? This is crazy people even entertain these violations. Taking money out of my pocket is equal to violence.
Down thumbing my post is equal to violence.
I’m not against a deposit. However some landlords are reluctant to return it, as l posted earlier. My ex husband and l use to own a couple of rentals fortunately no one trashed the place. It goes without saying of course the place should be left in good condition save for some wear and tear.
U are an absolute moron if you’re paying $5000 a month RENT……….my house payment is $665 a month..(no impound account)
How do you get tenants who destroy your house to pay for all of the repairs? Stop protecting all of the tenants and start protecting small landlords should like to get their house back in one piece!