No, landlords are not banned from charging three months’ rent as a security deposit nationwide

A California law limits security deposits to one month’s rent beginning July 1 for most rentals. This law isn’t nationwide, although many states have similar laws.

Social media posts on TikTok and Facebook claim that landlords are no longer able to charge new tenants three months’ rent as a security deposit beginning July 1.

Landlords often require a security deposit as proof of intent to move into the rental and to cover potential damages. Renters get some or all of their deposit back if there are no deductions for damages at the time they move out.

The caption of one video posted to TikTok claimed that this was the result of the House and Senate passing a bill, suggesting that this is a nationwide change prompted by a new law.

THE QUESTION

Are landlords banned from charging three-months’ rent as a security deposit nationwide?

THE SOURCES

THE ANSWER

No, landlords are not banned from charging three-months’ rent as a security deposit nationwide. These claims stem from a California law that goes into effect on July 1.

WHAT WE FOUND

The law going into effect July 1 that limits the amount landlords can charge renters for security deposits is a California law and does not apply to every state. However, about half of the states in the U.S. already have laws that similarly limit security deposits.

Beginning on July 1, 2024, California law limits security deposits in the state to one month’s rent, according to the California Department of Justice and California Assemblymember Matt Haney. That limit is bumped up to two times the monthly rent for landlords who own no more than two rental properties that collectively include four or fewer units for rent.

While this limit is new in California, there are plenty of states that already have security deposit limits. About half of all U.S. states have laws limiting security deposits to less than three months’ rent.

According to Rocket Lawyer and LandlordStudio, the following states have laws that ban landlords from setting the security deposit at three months’ rent or higher:

• Alabama
• Alaska
• Arizona
• Arkansas
• California
• Connecticut
• Delaware
• Washington, D.C.
• Hawaii
• Iowa
• Kansas
• Maine
• Maryland
• Massachusetts
• Michigan
• Missouri
• Nebraska
• New Hampshire
• New Jersey
• New Mexico
• New York
• North Carolina
• North Dakota
• Pennsylvania
• Rhode Island
• South Dakota
• Virginia

Every state law is different, each with different limits and exceptions for different lease terms, types of rentals and so on. Be sure to check the specific law of your state. Both Rocket Lawyer and LandlordStudio go into the differences between each state’s security deposit limits in their lists of state security deposit laws.

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