A new California law will soon change how much landlords can charge renters for their security deposit.
Among the many bills Gov. Gavin Newsom recently signed is Assembly Bill 12. It states that security deposits can be no more than one month’s rent.
The bill aims to make housing units more affordable statewide as renters continue to see costs rise.
“We live in a mobile home park and because of the water situation, our rent went up in our water," said Morro Bay renter Donna Harrison.
The average rent for a two-bedroom apartment in Morro Bay is $2,850. Under the previous law, landlords could charge renters a maximum of three months' rent, which in this case is $8,550. When the new law takes effect that would be reduced to just $2,850, or one month’s rent.
Still, some renters worry landlords will just increase their monthly rent instead.
“I'm a renter and rent can increase twice a year. People with a fixed income can’t afford that," said Douglas Paul Carpenter.
California Apartment Association Executive Vice President Debra Carlton released a statement in opposition to the new law, saying, “Further limiting a property owner’s ability to financially cover property damage or unpaid rent is an unfair imposition for rental housing providers.”
The signing of AB 12 into law makes California the 12th state to pass a bill limiting security deposit requirements.
The law is set to take effect on July 1 of next year.
