News: Security Deposits
Filter
Question: One of my tenants vacated the property and left his roommate behind. Both signed the rental agreement, and now the tenant who vacated is demanding his share of the security deposit be returned to him. Is he right? What should I do?
Answer: You are not required to return or account for the use of the security deposit until you regain possession of the property after the tenants have vacated. California requires the deposit be accounted for in writing and sent to the last known address of the tenants no later than 21 days following the return of possession… Read More
Question: Do I have to pay a tenant interest on his security deposit?
Answer: There are no state laws requiring that interest be paid on the tenant’s security deposit. However, some rent control ordinances and/or other local ordinances do require interest to be paid.
Question: We served a three-day notice to pay rent or quit. What is the latest date we could start an unlawful detainer without our three-day notice “becoming stale” and having to be re-served?
Answer: It depends on the facts of any given case, but the longer you wait, the more of an argument you are giving… Read More
Few things rile up a renter like a security deposit dispute.
A single misstep could leave a landlord blindsided by allegations of wrongdoing. Don’t let ignorance of the law land you in court.
The California Apartment Association’s four-part webinar series this fall starts with “Security Deposits: Collection & Return.”
Other webinars will cover companion animals, insurance policies and new laws affecting California rental property owners.
The security deposits webinar, scheduled for 1 p.m. to 2 p.m. Thursday, Sept. 19, provides an overview of the following:
Legal limits on amount and type of deposit
Using the deposit during the tenancy
The… Read More
The California Apartment Association wishes to thank the lawmakers who voted down a bill that would have unfairly penalized landlords who make honest calculations regarding security deposits.
Thanks also go out to the rental-housing professionals who took part in CAA’s letter-writing campaign to defeat the bill.
On May 29, Senator Mark Leno’s SB 603 received 18 no votes, 13 yes votes, and 8 abstentions. The bill needed 21 yes votes to pass.
The no votes came from the following senators: Joel Anderson, R-San Diego; Tom Berryhill, R-Twain Harte; Ron Calderon, D-Montebello; Anthony Cannella, R-Ceres; Lou Correa, D-Santa Ana; Bill Emmerson,… Read More
A bill that would have unfairly penalized landlords who make honest mistakes regarding security deposits has died on the Senate floor, thanks largely to opposition from the California Apartment Association.
Late Wednesday, Sen. Mark Leno’s SB 603 received 18 no votes, 13 yes votes and eight abstentions. Prior to the roll call, Sen. Roderick Wright, D. Los Angeles, spoke against the legislation, reflecting many of CAA’s reasons for opposition.
Although the bill had undergone substantial amendments, SB 603 remained bad for the rental housing industry. The original, more problematic version would have required that landlords pay interest on security deposits,… Read More
Tagged: Security Deposits
Sen. Mark Leno’s SB 603 would no longer require that landlords pay interest on security deposits, but his bill is still bad for the rental housing industry.
The interest-on-security-deposits provision came out after CAA’s strong lobbying activities and nearly 800 CAA members wrote opposition letters to lawmakers.
Remaining, however, are unfair penalty provisions for landlords who fail to return security deposits as required by law – no matter the rationale.
Under SB 603, a small-claims court judge would have to award penalties against the owner if the tenant successfully demonstrates that all or a portion of the deposit should have… Read More
Tagged: LegislationSecurity Deposits
A bill that would require landlords to pay interest on security deposits advanced Tuesday from the Senate Judiciary Committee and is headed for the Senate floor for a vote as early as next week.
The legislation, SB 603 by Mark Leno, D-San Francisco, does not make financial sense for tenants or landlords.
Under SB 603, a tenant would receive less money in interest than the costs incurred by his or her landlord to account for and return the security deposit.
Along with the requirement for interest payments, the bill includes a second troubling proposal: With no consideration for the owner’s… Read More
Tagged: LegislationSecurity Deposits
The Santa Cruz City Council has unanimously approved sweeping changes to the way rental owners pay interest on a tenant’s security deposit. The changes reduce the burden placed on rental owners to calculate, process, and distribute interest payments each year.
Tagged: Legal NewsSecurity Deposits
By Heidi Palutke, Esq.
CAA research counsel
Owners have a new option for compliance with the 21-day deadline for accounting for a tenant’s security deposit. CAA-sponsored AB 1679, which took effect Jan. 1, allows an owner to provide the accounting by email and electronically return any remaining deposit into the renter’s bank account.
Specifically, AB 1679, introduced by Assemblywoman Susan A. Bonilla, now provides that after either the owner or resident has given notice of termination, they may agree to have the owner:
Deposit any remaining portion of the security deposit electronically to a bank account or other financial institution… Read More