State law guide · Checked November 14, 2026

California landlord rules: late fees, deposits and rent increases

California regulates rentals more closely than most states: a deposit limit, a 21-day return deadline, set notice for rent increases and a statewide cap on many units. Here is what the Civil Code says, with the section for each rule.

Late fees in California

Limit

No dollar or percent cap in the statute. A late fee in a home lease is treated as liquidated damages. It is void unless the parties agreed on the amount and it would be impracticable or extremely difficult to fix the actual damage from late rent. Cal. Civ. Code § 1671(c)(2), (d)

Grace period

None found in the sections we read. Your lease sets it. Cal. Civ. Code § 1671

Other conditions

The liquidated damages test above is the statute's condition. Cal. Civ. Code § 1671(d)

Security deposits in California

Maximum deposit

One month's rent, for deposits collected on or after July 1, 2024. Two months' rent is allowed if the landlord is a natural person, or an LLC whose members are all natural persons, and owns no more than two residential rental properties with no more than four rental units in total. The two-month exception doesn't apply when the tenant is a service member. Cal. Civ. Code § 1950.5(c)

Return deadline

21 calendar days after the tenant has vacated. Cal. Civ. Code § 1950.5(h)(1)

Itemized deductions

Required, within the same 21 days. Send an itemized statement of each deduction with copies of receipts or invoices and the photos the statute calls for. Copies of receipts aren't required when repair and cleaning deductions together are $125 or less, unless the tenant asks for them within 14 days. Cal. Civ. Code § 1950.5(g), (h)

Interest

The state statute doesn't require it. Some cities do. Cal. Civ. Code § 1950.5

How it's held

No special account or bond in the statute. Cal. Civ. Code § 1950.5

Penalty

Up to twice the deposit, on top of actual damages, for keeping a deposit in bad faith. Cal. Civ. Code § 1950.5(m)

Rent increases in California

Notice to raise rent

30 days for an increase of 10% or less. 90 days for more than 10%. The 10% is measured against the rent charged at any time in the 12 months before the increase, counting earlier increases in that period. Notice is in writing, and mailing it adds time. Cal. Civ. Code § 827(b)

Statewide cap

5% plus the local change in the cost of living, or 10%, whichever is lower, over any 12 months. No more than two increases in 12 months. Exempt: housing with a certificate of occupancy issued in the previous 15 years; single-family homes and condos where the owner isn't a corporation, a real estate investment trust or an LLC with a corporate member and the tenant got the written exemption notice; and a duplex where the owner lives in one of the units. The cap is set to end January 1, 2030. Cal. Civ. Code § 1947.12

City rent control

Allowed. Cities can adopt their own rent control, within limits the Costa-Hawkins Rental Housing Act sets. Where a city's limit is lower than the state cap, the city's limit applies. Cal. Civ. Code §§ 1954.50–1954.53, 1947.12(m)

This page covers California state law for ordinary residential rentals. Cities and counties can add their own rules, and subsidized housing and mobile home lots follow different ones. Many California cities have their own rent control and deposit rules, so check your city too.

Questions landlords ask

Free templates you can use in California

These are plain templates that aren’t tied to one state. Fill in the numbers your statute and lease call for.

• Rent increase letter kit: increase notice, renewal offer, pricing worksheet and delivery log.
• Late rent notice kit: friendly reminder, past-due notice, payment plan and delivery log.
• Security deposit return kit: itemized return letter, wear-and-tear guide and move-out checklist.
• Move-in kit: inspection checklist and deposit receipt, signed by the tenant.
• Rent ledger: running tenant balances and printable statements.

This guide is general information, not legal advice. It summarizes state statutes as read on November 14, 2026; laws change and courts interpret them. Check the current statute (California Civil Code § 1950.5) or talk to a local attorney before you act.