Legal Question in Real Estate Law in California

This would be a matter of private contract. The only limitation on security deposits in the statutes is with respect to the maximum amount (2x rent if unfurnished and 3x monthly rent if furnished) and requiring a prompt accounting and refund of any excess. I cannot think of any reason a distinction would be made between tangible and intangible costs imposed on the landlord by the tenants. A fine for noise is not that different than a carpet stain or broken plaster.