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Why can a landlord keep a security deposit?

On Behalf of | Jun 16, 2025 | Real Estate Law |

When someone rents a house in California, the landlord typically takes a security deposit. This could be twice the rent payment, for example. The goal of this security deposit is to protect the landlord from a financial perspective, as there are certain situations in which they can keep that deposit and don’t have to return it even when the tenant moves out.

However, conflicts often arise. For instance, landlords are not allowed to keep a security deposit under California law if there is nothing but normal wear and tear in the home or apartment. For example, there could be light scratches from chairs on the baseboard or there may be matted-down sections of carpeting on the stairs or in high-traffic areas. This is all normal wear and tear that would happen just because someone is living in the space, so the landlord can’t keep the deposit for repairs.

Unpaid rent

The main reason that a landlord should keep a security deposit is if the tenant hasn’t paid their rent. It can take months to evict someone, but this helps the landlord cover some of the lost rent that they expected.

Repairing extensive damage or broken items

If the damage goes beyond normal wear and tear, then the landlord may be able to keep the security deposit. For instance, maybe a stove is broken and needs to be replaced, or maybe there are missing pieces of trim that have been torn down around a doorway. When extensive work is needed to return the space to its previous condition, then the security deposit could be used.

Naturally, though, this is an area of conflict. A tenant may claim that the damage to the unit is only normal wear and tear, while the landlord claims that it is excessive and gives them a right to the security deposit. When these types of disputes arise, landlords need to know what legal options they have.