Legal maximum amount of security deposit that can be charged by a landlord in California is two months rent. In reality, deposit amount is charged ranging from $300 to $500 by apartment complexes and up to 2 months by private landlords.

Due to the current market situation, most landlords lower their deposit amount to entice suitable renters to rent their properties. In today's market, about 90% of landlords charge approximately one month rent for deposit.

For other landlords who charge 1.5 months to 2 months deposit will encounter difficulties renting their properties for not being able to compete against majority of rentals that charge only one month rent for deposit.

Since most renters will rent a house with less deposit choosing between two rentals, the most sensible amount for landlords to charge is roughly about one month rent.

 

4 Comments on How Much To Charge On Security Deposit?

NOV
29
2008
3 Featured Posts Outside Blog

HI CAROLINE!

I just wanted to tell you that your header is great!  This, to me is the best time of the year!

Happy Holidays,

~Yvette

10:51am • #1
454,169 Points 2 Featured Posts Outside Blog

Hey, Caroline. I agree that one months rent is a good rule of thumb. Thanks for sharing, Jim

11:40am • #2
9 Featured Posts

Hi Caroline.  I think you're right, but it really depends on the immediate competition and the condition of the rental home.  The rentals that I manage typically have a one month security deposit, but I frequently see higher end homes with higher deposits.  I've found that one month is usually enough to cover any damage and it definitely attracts a substantial pool of potential tenants.

11:43am • #3
157,211 Points 1 Featured Post

I usually advise homeowners when leasing their property to ask for one month's rent.  I have been receiving lots of calls this month for leases and when I tell the potential tenant how much deposit is, they flip.  They say they cannot afford it.  I tell them that sometimes the homeowners will work with the deposit accepting payments toward it.

11:55am • #4

Leave a response…



(optional)
What does the graphic say?
 
Rainmaker_large

Caroline Tsou Chai

Diamond Bar, CA

More about me…

RE/MAX Realty 100

Address: 1411 S. Diamond Bar Blvd, Diamond Bar, Ca, 91765

Cell Phone: (626) 922-8408

Email Me



Links

Archives

RSS 2.0 Feed for this blog

Find CA real estate agents and Diamond Bar real estate on ActiveRain.