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Crisis for Landlords? California's AB12 Bans Security Deposits As We Know Them
Manage episode 408013586 series 3019135
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Summary
In this episode, Peter talks about a new law affecting every landlord in California. From January 1st, 2024, Assembly Bill 12 changes how much can be charged for security deposits. Before, landlords could ask for up to two months' rent for unfurnished properties and three for furnished ones. Now, they're limited to just one month. Peter is worried this might make it tough to rent to tenants who don't have the best background and could mean stricter rental application rules. Finally, he highlights the need for landlords to keep up with changes in the law to avoid problems and protect their businesses.
Takeaways
- Assembly Bill 12 limits security deposits to one month's rent starting January 1st, 2024.
- Staying updated on rental laws is crucial for landlords to avoid legal issues and safeguard their interests.
- Despite the new limit, landlords can still seek payment for damages that exceed one month's rent.
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