What are the laws governing the return of a security deposit?

In California, the laws governing the return of a security deposit are determined by the Department of Consumer Affairs, which sets the maximum deposit amount. The deposit must be returned within 21 days of the end of the rental agreement or when the tenant vacated the rental unit, whichever is later. The landlord can only deduct from the deposit if the tenant damaged the property beyond normal wear and tear, is behind on rent, or has not paid for utilities. The tenant is entitled to an itemized list of deductions from the deposit with receipts if the landlord made any repairs that are deducted from the deposit. The landlord must also make sure to document any damage and repairs to the rental property immediately upon the tenant’s move-out. If the tenant left the property in good condition and paid all their rent, the landlord must return the full deposit. The landlord must also provide the tenant with a written statement that includes the amount of the refund, the name and address of the person who paid the deposit, and the name and address of the person to whom the refund is to be sent. In order to be legally compliant with the return of the security deposit, landlords in California must abide by the laws set forth by the Department of Consumer Affairs. If these laws are not followed, landlords may face financial punishments or other legal consequences.

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