Previously, California landlords could collect a security deposit of up to 2x the rent for an unfinished apartment or 3x for a furnished unit.  Under the new law, they will be restricted to collecting no more than 1x the rent.  

Security deposits may be used for:

* Unpaid rent owned by the tenant (does not include late fees)

* Damage to the premises, exclusive of ordinary wear and tear, caused by the tenant / guest / licensee of the tenant

* Cleaning to return the unit to the same level of cleanliness the tenant had when they moved in

* To remedy future defaults by the tenant in any obligation under the rental agreement to restore, replace, or return personal property or appurtenances, exclusive of ordinary wear and tear, if the security deposit is authorized to be applied thereto by the rental agreement.

There is an exception if the landlord is a natural person or LLC where all members are natural persons and no more than two rental properties are owned with no more than four units total, then they will be allowed to charge up to two months' rent, unless the tenant is a service member.

AB12 goes into effect on July 1, 2024, and does not apply retroactively.

Full details of the law are available at 

https://leginfo.legislature.ca.gov/faces/billCompareClient.x...