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9:42 am March 20, 2009
| Teresa
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Is it illegal to charge first and last months rent plus a deposit in the state of California?
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9:43 am March 20, 2009
| Teresa
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Teresa,
Here is what I found about California last month rent and a security deposit. From what I have read and understand, the answer is yes.
BASIC RULES GOVERNING SECURITY DEPOSITS
At the beginning of the tenancy, the landlord most likely will require you to pay a security deposit. The landlord can use the security deposit, for example, if you move out owing rent, damage the rental unit beyond normal wear and tear, or leave the rental less clean than when you moved in.76
Under California law, a lease or rental agreement cannot say that a security deposit is “nonrefundable.”77 This means that when the tenancy ends, the landlord must return to you any payment that is a security deposit, unless the landlord properly uses the deposit for a lawful purpose, as described below and under Refunds of Security Deposits.
Almost all landlords charge tenants a security deposit. The security deposit may be called “last month's rent,” “security deposit,” “pet deposit,” “key fee,” or “cleaning fee.” The security deposit may be a combination, for example, of the last month's rent plus a specific amount for security. No matter what these payments or fees are called, the law considers them all, as well as any other deposit or charge, to be part of the security deposit.78 The one exception to this rule is stated in the next paragraph.
The law allows the landlord to require a tenant to pay an application screening fee, in addition to the security deposit.79 The application screening fee is not part of the security deposit. However, any other fee charged by the landlord at the beginning of the tenancy to cover the landlord's cost of processing a new tenant is part of the security deposit.80 Here are examples of the two kinds of fees:
I hope this helps,
Troy
Troy Boldt
Director of Sales and Marketing
888-674-9181
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