Legal Question in Real Estate Law in California
Security Deposit Requirements
We are about to sign a lease for some land for 30 day use. The real estate agent is looking for a security deposit in the same amount as the monthly rental fee. We will be prepaying the monthly rental fee. It was stipulated that a security deposit is required by California Law. I am trying to confirm if security deposits are required by California Law? Is this a normal requirement? We have yet to sign the contract and lot of things have been discussed and we have started to use the land for the 30 days.
3 Answers from Attorneys
Re: Security Deposit Requirements
I know of no statute in California that REQUIRES a security deposit.
Re: Security Deposit Requirements
California law regarding security deposits can be summarized as follows:
1. Security deposits are NOT mandatory.
2. On the other hand, the law defines numerous fees, etc. that lessors or agents might impose at the outset of a lease as 'security deposits' in order to avoid skirting the laws limiting the amount of security deposit that can be requested.
3. The total security that can be demanded for residential leases is twice the monthly rent for an unfurnished place and 3x for furnished.
4. Landlords must account to tenants within 21 days of the end of the lease for money deducted from the security deposit and refund the balance.
5. Landlords are not required to pay interest on security deposits except in a few cities that have special rent-control ordinances.
6. If the parcel you're renting is bare land and not residential, much of the foregoing doesn't apply. Bare-land rentals or leases would be governed pretty much by the traditional law of contract, i.e. whatever the parties are able to agree upon is legally OK (within reason).
Re: Security Deposit Requirements
No.
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