California Renters Could See Security Deposit Limits Under Proposed Bill

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A bill going through the California Legislature has the potential to limit the amount of security deposits for renters, reports MarketWatch’s Aarthi Swaminathan. Introduced in December, Bill 12 passed the state Assembly in May and now sits in the state Senate. If passed, it could be signed into law by September and would limit security deposits to one month’s rent, but would not change any of the liability on renters for damages, according to its author, Democratic Assemblyman Matt Haney.

“California is behind the rest of the country on this,” Haney told MarketWatch. “People view this as a commonsense, fair solution to reduce the burden of housing costs and provide relief to families.”

Landlords in California can ask for as much as two months’ rent on unfurnished units, according to FindLaw, and three months’ rent for furnished apartments. That sometimes can be as much as a down payment on a home, Haney said.

A typical one-bedroom apartment in San Francisco rents for about $2,300 per month in May, according to Apartment List. A two-bedroom apartment rents for around $2,500 a month. In Los Angeles, the typical one-bedroom rental cost $1,700 per month; a two-bedroom rental approximately $2,200.

Source: Multifamily Executive