What are the laws governing the return of tenants' security deposits?

In California, tenants are entitled to the return of their security deposits after they move out of a rental unit. Landlord and tenant laws in California dictates how a landlord must handle the return of these deposits. Under California law, the landlord is required to return the security deposit to the tenant within 21 days of the tenant moving out of the rental unit. If the landlord fails to return the security deposit within 21 days, they must also provide the tenant with an explanation of why the deposit is being withheld. If the landlord fails to do either of these things, they may be held legally responsible and have to pay the tenant a penalty of two times the amount of the security deposit. Additionally, a landlord may only withhold a security deposit from a tenant if there is clear evidence of damage to the rental unit, unpaid rent, or unpaid utility bills. Even then, a landlord must provide detailed information to the tenant about the sources of the damage and provide itemized estimates for repairs that the tenant is responsible for. If the landlord does not provide proof of damage, then the security deposit must be promptly returned to the tenant. Finally, California landlords are required to store security deposits in an interest-bearing account and pay the tenant any interest that is accrued on the account. Overall, California law is clear and strict when it comes to the return of tenants’ security deposits. Landlords must return these deposits within 21 days of the tenant vacating the rental unit and, if they fail to do so, they may be legally liable. Additionally, landlords may only withhold deposits if they have clear proof of damages and they must also pay any accrued interest on the security deposit to the tenant.

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