Los Angeles Security Deposit Law: A Renter's Guide
In the City of Los Angeles, landlords of rent-stabilized units must pay yearly interest on security deposits. Everything else, including the 21-day deadline and the one-month cap, comes from California law.
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Check my deadlineLocal law
Los Angeles Rent Stabilization Ordinance (RSO), Municipal Code § 151.06.02
California law also applies. See the California security deposit guide for the statewide rules.
Which rentals are covered
Rental units covered by the RSO: generally units in buildings that first got a certificate of occupancy on or before October 1, 1978, including apartments, duplexes, condos, and townhomes. Single-family homes on their own lot are usually exempt.
How much a landlord can charge
California's limit applies: one month's rent for leases starting on or after July 1, 2024, or two months' rent for qualifying small landlords.
Interest on your deposit
Landlords must pay simple interest on deposits held at least one year, at the rate the Rent Adjustment Commission sets for each calendar year. It can be paid each month or each year, directly or as a rent credit.
Getting your deposit back
The landlord has 21 days after you move out to return the deposit or send an itemized statement, as under California law. Any unpaid interest is owed too.
Other Los Angeles rules
- The Los Angeles Housing Department does not enforce deposit interest. Tenants recover unpaid interest in small claims court.
- California requires landlords to take photos of the unit at move-out and before and after repairs, and to back deductions of $125 or more with receipts.
Penalties
California law applies: up to twice the deposit in addition to the amount owed if the landlord kept it in bad faith.
Taking your landlord to small claims court
If your landlord won't pay after a written demand, you can sue in small claims court (Superior Court, small claims division) for up to $12,500 for individuals ($6,250 for businesses). Filing fee: $30 to $75, depending on the amount claimed and how many claims you've filed. Confirm the current fee with the court clerk. More on California small claims.
Los Angeles security deposit questions
How much can a landlord charge for a security deposit in Los Angeles?
California's limit applies: one month's rent for leases starting on or after July 1, 2024, or two months' rent for qualifying small landlords.
Do Los Angeles landlords have to pay interest on security deposits?
Landlords must pay simple interest on deposits held at least one year, at the rate the Rent Adjustment Commission sets for each calendar year. It can be paid each month or each year, directly or as a rent credit.
How long does a Los Angeles landlord have to return a security deposit?
The landlord has 21 days after you move out to return the deposit or send an itemized statement, as under California law. Any unpaid interest is owed too.
What is the penalty if a Los Angeles landlord keeps a deposit wrongfully?
California law applies: up to twice the deposit in addition to the amount owed if the landlord kept it in bad faith.
Last reviewed October 23, 2026. Sources: LA Housing Department: interest on security deposits. This page is general information, not legal advice. See our terms of use.