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 Bill Text - AB-414 Residential tenancies: return of security.

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 |Add To My Favorites |Track Bill | Version: 10/06/25 - Chaptered
 09/05/25 - Enrolled
 08/19/25 - Amended Senate
 07/08/25 - Amended Senate
 06/11/25 - Amended Senate
 03/12/25 - Amended Assembly
 02/04/25 - Introduced

 AB-414 Residential tenancies: return of security.(2025-2026)

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 Date Published: 10/07/2025 10:00 AM

AB414:v93#DOCUMENTBill Start

 Assembly Bill

 No. 414

 CHAPTER 340

An act to amend Section 1950.5 of the Civil Code, relating to tenancy. 

 [
 Approved by

 Governor
 October 06, 2025.

 Filed with

 Secretary of State
 October 06, 2025.
 ]

LEGISLATIVE COUNSEL'S DIGEST

AB 414, Pellerin.
 Residential tenancies: return of security.

Existing law regulates the terms and conditions of residential tenancies, including generally limiting the amount of security that a landlord may demand or receive to an amount or value equivalent to one month’s rent, as provided, and allowing a landlord to claim of the security only those amounts as are reasonably necessary for specified purposes. Existing law defines a security for these purposes as any payment, fee, deposit, or charge, including any payment, fee, deposit, or charge, except as specified, that is imposed at a tenancy’s beginning to reimburse a landlord for costs associated with processing a new tenant or that is imposed as an advance payment of rent, used for any purpose. Existing law requires a landlord to provide a tenant a copy of an itemized statement, as specified, and return the security’s remaining portion to the tenant by personal delivery or by first-class
 mail, postage prepaid, no later than 21 calendar days after the tenant has vacated the premises, as specified. Existing law authorizes a landlord and tenant to mutually agree to have the landlord deposit electronically the security’s remaining portion to a bank account or other financial institution designated by the tenant or provide a copy of the itemized statement to an email account provided by the tenant.

 This bill would revise these provisions to generally require the landlord to return the security by personal delivery or by check made payable to the tenant. If the landlord received the security or rental payments from the tenant electronically, the bill would instead require the landlord to return the remainder of the security electronically, as specified,
 unless the landlord and tenant designated another method of return, by written agreement. If the landlord received the security or rental payments from the tenant electronically, the bill would require the landlord to notify the tenant in writing of the tenant’s right to receive the security electronically pursuant to these provisions, as specified. The bill would also instead authorize the landlord and tenant to mutually agree, as specified, to provide the itemized statement by either email to an email account provided by the tenant or mail by first-class mail, postage prepaid, to an address provided by the tenant.

If multiple adult tenants reside in the unit, the bill would require the landlord to return the remainder of the security by a check made payable to all adult tenants, as specified, and provide the itemized statement by personal delivery or first-class mail, postage prepaid, to any one of the adult tenants chosen by the landlord, unless the landlord and
 all adult tenants, at the commencement of the tenancy or at any time during or after the tenancy, enter into a mutual written agreement containing specified provisions.

Digest Key

 Vote:
 MAJORITY 
 Appropriation:
 NO 
 Fiscal Committee:
 NO 
 Local Program:
 NO 

Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 1950.5 of the Civil Code is amended to read:

1950.5.

 (a) This section applies to security for a rental agreement for residential property that is used as the dwelling of the tenant.

(b) As used in this section, “security” means any payment, fee, deposit, or charge, including, but not limited to, any payment, fee, deposit, or charge, except as provided in Section 1950.6, that is imposed at the beginning of the tenancy to be used to reimburse the landlord for costs associated with processing a new tenant or that is imposed as an advance payment of rent, used or to be used for any purpose, including, but not limited to, any of the following:

(1) The compensation of