Practice and Disclosures, 25% of the examination
Security deposit
Money held to secure a residential tenant's obligations, subject to California limits on amount, deductions, documentation, and return.
For most California residential tenancies beginning on or after July 1, 2024, the total security deposit is capped at one month's rent, whether the unit is furnished or unfurnished. A qualifying small landlord who owns no more than two rental properties containing no more than four units in total may generally collect up to two months' rent, but that higher limit does not apply to a service member. The deposit is refundable and may be used only for lawful purposes such as unpaid rent, permitted cleaning, damage beyond ordinary wear, and specified restoration. The landlord generally has 21 calendar days after the tenant leaves to return the balance and provide the required itemization.
See also
Test the distinction
A relevant question from Practice and Disclosures, selected because its facts or explanation use this concept.
What is the maximum security deposit a landlord may collect on an unfurnished residential unit under the rule effective July 1, 2024?
Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanor under B&P Code section 123.
Primary sources
Use these authorities when a course summary, forum answer, or older flashcard conflicts with the current California rule.