For security collected on or after 1 July 2024, Civil Code section 1950.5 generally caps the deposit at one month's rent. A qualifying small landlord may collect up to two months' rent, except from a service member.
The general ceiling is one month's rent. A landlord who is a natural person or an LLC whose members are all natural persons may instead collect up to two months when they own no more than two residential rental properties containing no more than four offered rental units in total. That exception does not apply to a prospective tenant who is a service member. Confirm the buyer entity, its other holdings, and the tenant's status before choosing either ceiling.
In effect since 2024-07-01.