Legal Question in Landlord & Tenant Law in California

I need more facts to be sure what you are talking about. A security deposit protects the landlord. If a tenant damaged the property of a neighbor, then the neighbor should ask for payment from the person causing the damage. I don't know why the landlord would get in the middle of that or deduct anything from a deposit to fix anything besides the landlord's own property or damage to the landlord. Why did the landlord repair a neighbor's property that the landlord didn't damage? More facts would be helpful. Was the neighbor another tenant in the same building? What property was damaged and how?

Excerpt of Civil Code 1950.5.

(a) This section applies to security for a rental agreement

for residential property that is used as the dwelling of the tenant.

(b) As used in this section, "security" means any payment, fee,

deposit or charge, including, but not limited to, any payment, fee,

deposit, or charge, except as provided in Section 1950.6, that is

imposed at the beginning of the tenancy to be used to reimburse the

landlord for costs associated with processing a new tenant or that is

imposed as an advance payment of rent, used or to be used for any

purpose, including, but not limited to, any of the following:

(1) The compensation of a landlord for a tenant's default in the

payment of rent.

(2) The repair of damages to the premises, exclusive of ordinary

wear and tear, caused by the tenant or by a guest or licensee of the

tenant.

Also, read your written rental agreement if you have one.

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Storm is wrong that there are any more facts needed. All that is needed is an either/or answer. As the Civil Code section provided by Mr. Storm indicates, the deposit may be "used for any purpose, . . . including but not limited to . . ." the listed items. So basically it can be used for reimbursement of anything the tenant owes the landlord at the end of the tenancy, or even in the middle of it under some circumstances. The "either/or" is the question of whether or not the landlord was personally liable to the neighbor for the tenants' damage. If the neighbor could not have held the landlord personally liable for the tenants' damage, the landlord was a mere volunteer in paying the neighbor, and deprived the tenants the opportunity to contest the claim or otherwise avoid paying it. In that case, the landlord cannot deduct from the deposit. If, however, the landlord was directly liable to the neighbor for the damage, then he was obligated to pay it due to the tenant's conduct and the landlord can deduct that from the deposit.