Your Apartment Security Deposit

For the next couple of weeks, we will be providing you with blog posts around what to expect from your property management company, such as Lightner Property Group, or building owner. Expect posts about repair requests, pet policies, etc. Please feel free to comment about other posts you would like to see included!



"How Much Is My Apartment Security Deposit Going To Cost Me?"



When you are moving into a new San Francisco apartment, it is important to know exactly how much you can be charged for the apartment security deposit. No, it is not some magical number that your property management company or owner comes up with on a whim. It is in fact determined by state law.



In California, an owner is limited to charging two times the total monthly rent for an unfurnished apartment and three times the total monthly rent for a furnished apartment.



Lightner Property Group charges 1.5 times the monthly rent, so for instance, for the studio LPG currently has available in Russian Hill, the apartment security deposit would be $1,942.50 (based upon an acceptable credit score - poor credit requires a greater deposit or other guarantee).



No other amounts can be added to this sum, regardless of how the property manager or owner labels them (i.e. key deposit, last month's rent). If it is collected at the commencement of your lease (other than the 1st month's rent), it is deemed as a deposit and is subject to the state law limitations.



"Do I Get Interest on My Security Deposit?!"



If you live in San Francisco, owners are required to pay interest on your security deposit after it has been held for one year. The interest rate changes each year. Keep in mind that this is NOT based on a calendar year and changes each year on March 1st.



"What About My Security Deposit Return?"



Refund checks are a hot topic, especially given the economic climate. The refund of a security deposit in California is generally controlled by Civil Code Section 1950.8.



A landlord has 21 days from the date of the actual move out date/turnover of the apartment to refund the security deposit and provide the required documentation of any deductions taken from the security deposit.