A security deposit is normally 1-2 month's rent, but it can vary from place to place. Following the California security deposit laws, a landlord has twenty-one days to return the money to a tenant or write out an itemized statement. Before finalizing rental security deposits, you should research California real estate regulations.
But, if you would rather have all the information in one place, then this article will give you an overview.
So, you can skip the hassle of reading over government pages and websites to find the key information. Instead, you can focus on finding great tenants for your properties.
What Are the California Security Deposit Laws?
When renting an apartment to tenants, you need to be aware of the California security deposit laws before signing a contract. But, similar to other laws, the security deposit policies often change annually. Even if the changes are not significant, it's essential that you read the fine print when looking over documents.
Besides the timeframe for returning a security deposit amount, laws state that a landlord has the right to use the funds to cover unpaid rent. The landlord can also use the money for severe damage and cleaning expenses. Ideally, you should clearly outline the security deposit fees to the tenants so they know the laws.
Inspections for the Property
Inspections must be organized for the move-in and move-out dates for individual tenants. This is an important part of the process so all parties are aware of the condition of the property. In some cases, it's common for landlords and tenants to take photographs of the space to ensure it's returned in the same state at the end of the contract.
This is a good way to protect the landlord and tenant from extra charges when they move out of the property.
Interest Rates
According to the San Diego security deposit laws, landlords must pay interest for money held for over a year. This is a new policy introduced this year that impacts landlords and protects tenants from missing money for long periods. Therefore, you need to be careful when putting your deposit away with new tenants.
If you're struggling to understand California deposit laws, then you're not alone. Hiring a property management team can give you more peace of mind when handling finances and communicating with tenants. You can get better support from property managers that live and work in California.
California Property Management Support
Now that you know about the California security deposit laws, it's time to focus on other aspects of property management. If you work with a team of property managers, you'll have access to the new laws quickly so you can add them to your current contracts with tenants.
Let us take care of your deposits while you focus on looking for new properties. Contact us through our website, and we'll be happy to discuss the services in your company.
If you have any further questions about security deposits, don't hesitate to reach out to the team.
