Legislative Update - June 27, 2024
Date postedJune 27, 2024
Important Reminder: New Security Deposit Law Takes Effect Monday
Effective July 1, 2024, security deposits will be limited to no more that the equivalent of one month’s rent, except in very limited scenarios. AB 12 (Haney), passed and signed by the Governor last year, caps security deposits at one month’s rent, regardless of whether the unit is furnished.
Up to the equivalent of two month’s rent may be collected if all of the following apply:
- The landlord is a natural person or a limited liability company in which all members are natural persons. (Defines “natural person” as including any natural person who is a settlor or beneficiary of a family trust. Defines “family trust” as a revocable living trust or irrevocable trust in which the settlors and beneficiaries of the trust are persons who are related to each other as sibling, spouse, domestic partner, child, parent, grandparent, or grandchild.)
- The landlord owns no more than two residential rental properties that collectively include no more than four dwelling units offered for rent.
No more than one month’s rent for active-duty military remains intact regardless of the above exemption.
The updated SCRHA Security Deposit Addendum Form #209 will be available to members via Azibo by Monday, July 1.
- San Diego CPI: 3.6%
- Max Increase = 8.6%
- Riverside CPI: 4.3%
- Max Increase = 9.3%
- Imperial County CPI: 3.8%
- Max Increase = 8.8%