AB 12: Proposed Bill Aims to Limit Security Deposits for California Renters; what could go wrong?
Housing providers know that security deposits are a critical part of the rental process. They provide a measure of security and protection against damages and unpaid rent, which can be costly for Housing providers. However, a new bill proposed by Assemblymember Matt Haney, D-San Francisco, could limit the amount of security deposits that Housing providers can receive, which may affect our ability to protect our investments.
AB 12 seeks to change the current California law that caps security deposits at two months' rent for unfurnished properties or three months' rent for furnished properties. In addition, the bill would limit the security deposit to one month's rent, regardless of whether the property is furnished or unfurnished.
While this may seem like a positive change for renters, Housing providers have concerns about the potential consequences of such a policy. For example, a lower security deposit requirement could increase the risk of tenants causing damage to the property, such as furniture, and/or skipping out on rent, which would be extremely costly for housing providers. It would take away an incentive for some to have general care for the apartment unit. Additionally, a lower security deposit requirement would not be adequate protection for Housing providers in case of damages exceeding the deposit amount, which could result in the property owner increasing rent to recoup the significant cost that can incur.
Housing providers must protect their investments and ensure their properties are well-maintained and safe for tenants. Security deposits are an essential tool for fulfilling this responsibility. While it is important to make housing more affordable and accessible for a broader range of renters, it is also crucial to balance the needs of renters with the requirements of Housing providers. AB 12 may need to be modified to strike this balance and ensure that Housing providers can continue to protect their investments while also providing more affordable housing options for renters.
