Security deposits used to be one of the more straightforward parts of being a landlord in California. That changed in recent years with new state legislation that significantly limits how much you can collect and how precisely you must account for it when a tenant moves out. Many Ventura landlords, even experienced ones, are still operating under outdated assumptions.
Here’s exactly what California law requires for security deposits in 2026, and where Ventura landlords most commonly get it wrong.
The Big Change: AB 12 Deposit Limits
As of 2024, AB 12 fundamentally changed how much a landlord can collect as a security deposit in California, and the rule still applies in full in 2026.
For most landlords: since July 1, 2024, the maximum security deposit is one month’s rent, regardless of whether the unit is furnished or unfurnished. This applies to all new security deposits collected after that date; deposits lawfully collected before July 1, 2024 can remain in place until the lease turns over.
This is a major shift from the previous rule, which allowed up to two months’ rent for unfurnished units and three months’ for furnished units. If you’re still collecting deposits under the old formula on a new lease, you are out of compliance, and a tenant who successfully challenges an excessive deposit can recover damages.
Limited exception: Landlords who are a natural person, or an LLC where every member is a natural person, and who own no more than two residential rental properties totaling no more than four units, may collect up to two months’ rent. This exception does not apply to active-duty service members, who are capped at one month’s rent regardless of landlord size. The exception is narrow and condition-specific, if you believe you qualify, confirm your eligibility carefully before relying on it, since misapplying this exception is itself a compliance risk.
Photo Documentation Is Now Mandatory Under AB 2801, Not Just Good Practice
A separate law, AB 2801, took full effect July 1, 2025, and it changes deposit documentation from a “best practice” into a hard legal requirement with real teeth. Many landlords have heard the general advice to “take photos” for years. AB 2801 makes that advice the law, with a specific penalty attached if you skip it.
Under AB 2801, landlords must:
- Take photos (or video) documenting the unit’s condition at move-in
- Take photos documenting the unit’s condition at move-out, before any repairs or cleaning begins
- Take a second set of photos after any repair or cleaning work for which a deduction is being made, showing the completed work
- Provide an itemized written statement of costs alongside the photos when withholding any portion of the deposit
- Deliver all of this, the itemized statement and the supporting photos, to the tenant within the existing 21-day deposit return window
The penalty for skipping this is significant. If a landlord withholds part of a deposit in bad faith without providing the required photo documentation, they can lose the right to retain any amount from the deposit at all, not just the disputed portion. This is a meaningfully higher-stakes requirement than general itemization, and it’s one of the more commonly overlooked 2025-2026 compliance changes among Ventura landlords who haven’t updated their move-out process since before AB 2801 took effect.
A compliant move-out deposit return in Ventura should include:
- Move-in photos establishing baseline condition
- Move-out photos taken before any repairs or cleaning
- Post-repair or post-cleaning photos for any item being deducted
- An itemized list of every deduction, with a specific dollar amount for each
- Receipts or invoices supporting the cost of repairs or cleaning
- The full package (itemized statement plus photos) delivered within 21 days of the tenant vacating
Landlords who provide a vague total (“$400 for damages”) without itemized, photo-backed support are exposed to a deposit dispute, and under AB 2801 that exposure is now more severe than it was before the law took effect.
What You Can, and Cannot, Deduct
Security deposits in Ventura can be used to cover:
- Unpaid rent
- Cost to repair damage beyond normal wear and tear
- Cleaning required to return the unit to its move-in condition (if the lease specifies this)
- Cost of replacing missing items that were provided with the unit (keys, remotes, etc.)
Security deposits cannot be used to cover:
- Normal wear and tear (worn carpet from years of use, minor scuffs, faded paint)
- Repairs that were needed before the tenant moved in
- Routine maintenance the landlord would have performed regardless of tenant occupancy
The distinction between “damage” and “normal wear and tear” is the single most common point of dispute between landlords and tenants in California, and it’s where a detailed move-in inspection report becomes essential, without it, you have no documented baseline to compare against at move-out.
Why Move-In Documentation Matters More Than Ever
Given the tighter itemization standard under AB 2801, the quality of your move-in inspection directly determines how defensible your move-out deductions will be. A thorough move-in process should include:
- Dated, timestamped photos of every room, including close-ups of any existing wear
- A written condition report signed by both landlord and tenant
- Documentation of all keys, remotes, and provided items
- Confirmation of appliance condition and functionality
Skipping this step doesn’t just create risk at move-out, it removes your ability to prove your case if a dispute ends up in small claims court, which is a common venue for deposit disagreements in Ventura.
How This Connects to Broader Rent Law Compliance
Security deposit rules don’t exist in isolation. They’re part of the same compliance landscape that includes AB 1482’s rent increase caps and just-cause eviction requirements. If you’re not current on the broader picture, read our companion guide: Ventura Landlord Guide: AB 1482, Local Rent Rules & What’s Changing in 2026.
Deposit compliance also intersects directly with how you screen and select tenants in the first place, see Tenant Screening Rules for Ventura Landlords for the full picture of where legal risk concentrates in the leasing process.
Common Mistakes Ventura Landlords Make on Deposits
- Still collecting two or three months’ rent as a deposit, unaware that AB 12 lowered the cap
- Skipping the mandatory photo documentation under AB 2801, treating it as optional best practice rather than a legal requirement with a real penalty
- Providing a vague, non-itemized accounting at move-out instead of receipt-backed, photo-backed deductions
- Deducting for normal wear and tear, a frequent and costly mistake
- Missing the 21-day return deadline, which can forfeit the landlord’s right to retain any portion of the deposit
- No documented move-in condition report, leaving no baseline to support move-out deductions
- Mixing deposit funds with operating funds instead of holding them properly until they’re earned
How 101 Property Management Handles Deposits for Ventura Owners
At 101 Property Management, every Ventura property we manage follows a documented, compliant deposit process from move-in through move-out, current deposit limits under AB 12, full photo documentation at move-in, and itemized, receipt-backed accounting at move-out within the required 21-day window.
This is part of the broader property maintenance and management process we run for every owner, and it’s tracked through our owner portal so you have visibility into deposit status at any point, not just at move-out.
For owners managing single-family homes or condos, see our residential property management services. For multifamily and apartment properties, where deposit volume and turnover are higher, see our multifamily management and apartment property management services.
Not Sure If Your Current Process Is Compliant?
If you’re self-managing and aren’t certain your deposit amounts, documentation, or move-out process would hold up to a tenant dispute, it’s worth a conversation before your next tenant turnover, not after.
Get a free Ventura property consultation →
You can also browse our full services overview or read more owner-focused guidance on our FAQ page.
101 Property Management is a bilingual, locally owned property management company serving Ventura, Oxnard, Santa Barbara, Goleta, Santa Maria, and surrounding communities. Our team keeps Ventura and Santa Barbara County landlords compliant with California’s evolving rental laws. Call 805-770-2048.
This article is for general informational purposes and reflects our understanding of California security deposit law, including AB 12 and AB 2801, as of publication. It is not legal advice. Consult a licensed attorney for guidance specific to your lease or a particular deposit dispute.