What Changes Will Go Into Effect On July 1st?
Property Management updates are on the horizon for renters and landlords alike as changes to security deposits are set to take effect soon. The Assembly Bill (AB-12), passed back in 2023, will take effect on July 1st, which will create some changes in rental agreements pertaining to security deposits and compliance.
In the past, landlords had the ability to request a security deposit equivalent to up to two months' rent for unfurnished properties and up to three months' rent for furnished properties from potential tenants. However, this is about to shift with the introduction of AB-12.
The bill will impose a cap on security deposits, limiting them to just one month's rent for rental agreements.*
Are There Any Exemptions To The New Bill?
In order to help smaller landlords, owners with up to two rental properties (totaling no more than four units) may still request up to two months' rent, unless the tenant is a service member.
Here is a quick rundown of the guidelines for exempt properties:
- Military personnel: Up to one month's rent
- Unfurnished properties: Up to two months' rent
- Furnished properties: Up to three months' rent
What Now?
For property owners, staying informed of new laws and ensuring compliance is more important than ever. At Bear Flag Property Management, we're committed to keeping you informed about any legislative changes that may affect your properties and guiding you through these transitions. If you would like to receive some guidance on how to navigate these changes and inquire about our services, click here.
If you would like to read the official document of AB-12, click here.
