How Much Can a Landlord Charge for Damages in California?

Chipped a countertop, a wine stain on the carpet, a nail hole in the wall — it happens in nearly every rental. The real question for owners and tenants alike is where the line sits: what can a landlord legally charge a tenant for, and what has to be absorbed as ordinary wear and tear?

This guide breaks down how much a California landlord can charge for damages in 2026 — including the recent changes to the state’s security deposit rules that every Los Angeles property owner needs to know.

Understanding Security Deposits in California

A security deposit is money a tenant pays before moving in that protects the landlord against unpaid rent, damage beyond normal wear and tear, and cleaning needed to return the unit to its original condition. It is the tenant’s money — held, not earned — and it must be returned, minus any lawful deductions, after the tenancy ends.

What a deposit cannot cover is routine maintenance or the ordinary aging of a unit. And in 2024 and 2025, two California laws significantly changed both how much a landlord can collect and how deductions must be documented.

How Much Can a Landlord Charge? The One-Month Limit (AB 12)

This is where a lot of older guidance is now wrong. Under the previous law, landlords could charge up to two months’ rent for an unfurnished unit and three months’ rent for a furnished one. That rule no longer applies.

Effective July 1, 2024, Assembly Bill 12 caps security deposits at one month’s rent — whether the unit is furnished or unfurnished. That single cap covers everything: there is no separate pet deposit, cleaning deposit, or last-month’s-rent deposit stacked on top of it. (First month’s rent is still collected normally; it isn’t part of the deposit.)

There is one narrow exception. A landlord may collect up to two months’ rent only if they:

• hold the property as a natural person, an LLC whose members are all natural persons, or a family trust; and
• own no more than two residential rental properties with no more than four units in total.

Even then, the exception does not apply when the tenant is an active-duty service member, whose deposit is capped at one month. For most owners of LA apartment buildings — anything beyond a small duplex-or-fourplex footprint — the exception won’t apply, so the limit is simply one month’s rent.

What a Landlord Can Deduct For

California law lets a landlord deduct from the deposit only what is reasonably necessary to cover:

• unpaid rent;
• repairing damage caused by the tenant beyond normal wear and tear;
• cleaning needed to return the unit to the condition it was in at move-in.

Deductions must reflect actual, reasonable costs, and the landlord must give the tenant an itemized statement of every charge. A landlord cannot pad the bill, charge for pre-existing issues, or bill for “professional” cleaning when ordinary cleaning would return the unit to its move-in condition.

New Photo and Documentation Rules (AB 2801)

A second law, Assembly Bill 2801, changed how deductions must be proven. What used to be smart practice is now a legal requirement, phased in across 2025:

• As of April 1, 2025: the landlord must photograph the unit immediately after the tenant moves out (before any repairs or cleaning) and again after the work is completed.
• As of July 1, 2025: for any new tenancy, the landlord must also photograph the unit before or at the start of the lease, establishing a baseline.

When any part of the deposit is withheld, the landlord must provide the tenant — within 21 calendar days of move-out — an itemized statement together with the before-and-after photos justifying each charge. Tenants also have the right to request a pre-move-out inspection, giving them a chance to fix issues before they become deductions; the landlord must offer this in writing. The Apartment Association of Greater Los Angeles (AAGLA) provides member forms for exactly this notice — and as a Lotus West client, that compliance is handled for you.

The takeaway for owners is straightforward: document everything, photograph every stage, and keep deductions tied to real, reasonable costs. A landlord who withholds a deposit in bad faith can be ordered to pay the tenant up to twice the deposit amount on top of returning it.

Property Damage vs. Normal Wear and Tear

The single most common deposit dispute comes down to one distinction: normal wear and tear (the landlord’s responsibility) versus tenant-caused damage (potentially the tenant’s). Getting this right protects both sides.

Normal wear and tear — not deductible:

• gradual discoloration of fixtures or tiles from regular cleaning;
• lightly worn countertops or cabinet handles from everyday use;
• minor fraying of carpet or faded flooring in normal-traffic areas;
• small nail holes and faded paint over the course of a tenancy.

Tenant-caused damage — potentially deductible:

• large holes in walls from heavy objects or carelessness;
• burns, deep stains, or cuts in carpet or flooring;
• damage to appliances from misuse or neglect;
• pet damage such as scratched doors, chewed trim, or urine stains;
• broken fixtures or furnishings from unauthorized gatherings.

How to Determine Damage Costs

Once damage is identified, the charge has to be reasonable and defensible. A few reliable ways to get there:

Professional Assessments

Contractors, repair specialists, or appraisers can give an accurate estimate for significant damage. Get more than one quote where the cost is large, and let the tenant know if a professional will be used, since it affects what they may owe.

Maintenance and Repair History

A clear record of the unit’s condition and past repairs establishes a baseline, making it easy to separate new damage from pre-existing issues or ordinary wear.

Market Rates and Pricing

For replacements, use the current market price of a comparable item — not the cost of an upgrade. Depreciation matters too: a ten-year-old carpet isn’t charged at the price of a brand-new one.

Itemized Cost Breakdown

A line-by-line breakdown — with invoices and the now-required photos — makes deductions transparent and far easier to defend if a tenant disputes them.

Best Practices for Owners and Tenants

Thorough Move-In and Move-Out Inspections

Inspect and photograph the unit before move-in and after move-out, and have both parties review and sign the report. Under AB 2801 this is no longer just good practice — the move-in and move-out photos are legally required to support any deduction.

Clear, Comprehensive Lease Agreements

A strong lease spells out the tenant’s maintenance responsibilities, the deduction and documentation process, how repairs are reported and approved, and how disputes are resolved. Clarity up front prevents most arguments later.

Open, Written Communication

Keep communication about damage and repairs timely and in writing. A documented record of what was reported, agreed, and charged is the best protection for both sides — and often the difference between a quick resolution and a trip to small claims court.

The Bottom Line

A California landlord can charge a tenant for the reasonable cost of repairing damage beyond normal wear and tear — but only within the rules: a one-month deposit cap under AB 12, photo-documented and itemized deductions under AB 2801, and the deposit returned within 21 days. Owners who document carefully and charge fairly rarely end up in disputes; those who don’t risk penalties of up to twice the deposit.

At Lotus West Properties, managing these details is part of the job. We handle move-in and move-out documentation, deposit accounting, and full AB 12 / AB 2801 compliance across nearly 100 buildings throughout Los Angeles — from Malibu and Pacific Palisades to West Hollywood and the greater LA area. If you’d rather not track changing deposit law yourself, that’s exactly what we’re here for.

Contact Lotus West Properties today to see how professional management protects your investment and keeps you compliant.

This article reflects California law as of 2026 and is general information, not legal advice. For a specific situation, consult a qualified attorney.

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Sources:

• California Civil Code § 1950.5 (security deposits)
• California Assembly Bill 12 (2023) — security deposit limit
• California Assembly Bill 2801 (2024) — security deposit documentation requirements
• Apartment Association of Greater Los Angeles (AAGLA)
• California Courts Self-Help Guide — security deposits