Legal Question in Landlord & Tenant Law in California

I assume if you have been living in the apartment for two years you are now on a month-to-month lease. Assuming that is the case, the landlord can change the terms of your lease agreement with only 30 days notice of the change of terms. A change in terms can include an increase in the amount of your security deposit, as long as the total amount of the deposit does not exceed the statutory maximum. A landlord can also require what I assume he is asking for, which is a pet deposit. The problem you face is that without a term lease, you are effectively renting the apartment 30 days at a time. Every 30 days, theoretically, the terms of your rental agreement can change. You should discuss with your landlord whether he would be willing to accept that additional $500 deposit over time.

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Mr. Gibbs is mostly right, but wrong on the timing. For tenancies of more than a year, 60-days notice is required to change the terms of the tenancy.