Currently, landlords can ask for security deposits of up to two months鈥� rent for an unfurnished apartment and three months鈥� rent for a furnished apartment.
Assembly member Matt Haney (D-San Francisco)鈥檚 AB 12 would limit all security deposits to one months鈥� rent.
Haney argues the bill would lower barriers for housing as costs have skyrocketed. He said the median rent in California has increased 35% since 2000, while median renter household income has risen only 6% during the same period.
鈥淗igher rents result in higher security deposits,鈥� he said. 鈥淯nder current California law, every renter can be required to pay up to three months鈥� rent for the security deposit. This law was put in place in 1977 and hasn't been changed substantially in three decades."
Rental housing and realtor groups oppose the bill, arguing a three-month security deposit helps landlords recoup costs for damage.
鈥淔urther limiting a property owner's ability to financially cover property damage or unpaid rent is an unfair imposition for rental housing providers,鈥� the California Apartment Association wrote in opposition to the bill.
Haney said in more expensive cities like Los Angeles and San Francisco, a three-month security deposit for a one-bedroom apartment could get as high as $8,000 or $10,000, a number he said 鈥渃an be as much as a down payment on a house in many parts of the country.鈥�
The San Francisco Democrat founded and chairs an in the Legislature this session.
He noted a dozen other states including New York, Alabama, Massachusetts and others have similar caps and that California already limits housing security deposits to one months鈥� rent for veterans.
鈥淭here鈥檚 no reason not to extend this same protection to every renter in the state,鈥� Haney said. 鈥淚t doesn鈥檛 take away a landlord鈥檚 ability to hold their tenets accountable. They can still recover any damages in court鈥� and set their own rental prices.
The California Association of Realtors said the bill provides no flexibility for small landlords, a complaint Haney said he would work on as the bill moves through the Legislature.
The bill passed the Assembly floor Monday by a party-line vote of 51-14. Most Republicans voted against the bill, though none spoke against it on the floor.
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