Renters to pay less for security deposits after July 1

California renters will be on the hook for a lot less money when it comes to a security deposit for new housing agreements. 

A recently signed California law, Assembly Bill 12, will bring significant changes to security deposit requirements for landlords in the state. Under this new legislation, security deposits for renters can no longer exceed one month's rent. This move is part of an effort to address the rising costs of housing and make rental units more affordable for residents.

Previously, landlords in California could charge renters a maximum of three months' rent as a security deposit, potentially totaling a substantial amount. With the enactment of this law, landlords will be limited to charging a security deposit equivalent to just one month's rent, considerably reducing the upfront financial burden on tenants.

However, some renters express concerns that landlords might respond to this change by increasing monthly rent rates more frequently, affecting those on fixed incomes who struggle to keep up with rising living costs.

Debra Carlton, the Executive Vice President of the California Apartment Association, voiced opposition to the new law, arguing that further restricting property owners' ability to cover property damage or unpaid rent is an unfair burden for rental housing providers.

The implementation of Assembly Bill 12 positions California as the 12th state to pass legislation limiting security deposit requirements. This law is scheduled to go into effect on July 1 of the next year.