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East County News ServicePhoto: CC by ND via Bing
July 9, 2024 (Sacramento) – Since July 1st, a new law prohibits many landlords from charging renters more than one month’s rent as a security deposit. The law does not apply to smaller landlords who own only one or two properties, with a total of four units or less.
Assembly Bill 12, authored by Assemblymember Matt Haney (D-San Francisco) aims to end exorbitant security deposits of double or even triple the monthly rent that some landlords have been charging.
“Massive security deposits can create insurmountable barriers to housing affordability and accessibility for millions of Californians” said Haney who chairs the California Legislature’s Renters’ Caucus.
San Diego County has one of the highest housing costs in the nation, with rent skyrocketing in recent years.
According to Haney’s office, 53% of California renters indicate that they are able to afford their rent but they’re unable to get an apartment because they simply can’t afford to pay the two month’s rent as a security deposit. This pushes many families, including those with individuals making minimum wage, to either forgo necessities such as food and utilities or acquire more debt to be approved for housing. For some, it can also lead to homelessness.
“In California’s high-cost rental market, expensive security deposits are often imposed on immigrants and people of color, effectively limiting access to safe and affordable housing. By capping high security deposits, AB 12 advances a measure of equity and empowers immigrants and people of color across the state, who contribute daily to making our diverse state thrive.” saud Masih Fouladi, the Executive Director of California Immigrant Policy Center.
AB 12 does not affect potential liability, so landlords will still be able to seek damages from tenants who cause damage to property that exceeds the amount of the security deposit.
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