Reference: the security deposit rule in each state and covered city. To settle a deposit, use the free Deposit settlement tool.

Reference

Security deposit rules in Los Angeles, CA

California (Los Angeles): return the deposit within 21 calendar days of the day the tenant vacated. Interest: conditional. Penalty if the deposit is kept in bad faith: 2x the deposit. (Cal. Civ. Code 1950.5; L.A. Mun. Code 151.06.02 (RSO); LAHD bulletin 44)

What the city changes

interest, conditional (3.03%). Everything else follows California's rule (Cal. Civ. Code 1950.5).

The rule text

Landlords of rental units subject to the Rent Stabilization Ordinance (RSO) ... must pay interest on all security deposits held for at least one (1) year for their tenants.

L.A. Mun. Code 151.06.02 (RSO); LAHD bulletin 44. Source: Rent Stabilization Bulletin 44, Interest Payment on Security Deposit (01/13/2026), read 2026-10-09.

Notes on this ordinance (1)

Non-payment remedy is a civil action (151.06.02(G)); LAHD does not investigate interest complaints.

Research notes (1)

How we sourced this rule: where the text was read and what we could not check.

The 2027 rate is on the RAC's September 10, 2026 agenda; re-check in December 2026.

Worked example

The same move-out as on the state pages. A $2,000.00 deposit; the tenant moved in on June 1, 2023 and out on September 30, 2026. Intended deductions: $300.00 unpaid rent, $150.00 cleaning and a $1,200.00 carpet that was 5 years old.

Return by: October 21, 2026
21 calendar days after the day the tenant vacated.
Allowed deductions: $1,050.00
Of $1,650.00 claimed.
Refund due: $1,177.86
Interest $227.86.

The draft statement for this example

DRAFT ITEMIZED STATEMENT OF SECURITY DEPOSIT
Rule: Cal. Civ. Code 1950.5; L.A. Mun. Code 151.06.02 (RSO); LAHD bulletin 44 (California, Los Angeles)
Move-out date: September 30, 2026

Security deposit held                            $2,000.00
Interest credited                                  $227.86
Deduction: Unpaid rent                            -$300.00
Deduction: Cleaning                               -$150.00
Deduction: Carpet                                 -$600.00
    Prorated: 5.00 of 10 years of useful life used, 50.00% remaining of $1,200.00.
Total deductions                                -$1,050.00
Refund due to tenant                             $1,177.86
Return by                                   October 21, 2026

Notes:
- Copies of bills, invoices or receipts (or time and hourly rate for own work) must accompany the statement when repair and cleaning deductions exceed $125 in total, or whenever the tenant asks within 14 days of the statement; a good-faith estimate is allowed if work or documents are not done within 21 days, with documents within 14 days of completion (1950.5(h)(2)-(5)).
- Photos within a reasonable time after possession returns and after repairs/cleaning, from 2025-04-01; move-in photos for tenancies beginning on or after 2025-07-01 (1950.5(g)). Photos must accompany the statement when repair or cleaning deductions are taken (h)(2)(D).
- Itemized under Cal. Civ. Code 1950.5; L.A. Mun. Code 151.06.02 (RSO); LAHD bulletin 44.

Settle a deposit in Los Angeles

required

Where and how much

The state sets the rules; a covered city adds its own.

StateCityAdds the city's ordinance where we cover one.Deposit heldMonthly rentChecks the deposit cap.Units in the buildingInterest depends on it in IL, NY.

Dates

The dates start the clock.

Tenant moved outTenancy startedFor interest and item ages.Lease endedIf not the move-out day.Forwarding address receivedStarts or holds the clock in CT, IA, MN, RI, SD, TX, WY.Tenant's written demand receivedStarts the clock in AZ, KS, MD, MS, OK, SC, UT.New tenant moved inCan start the clock in WI, WV.Notice of claim sentFlorida: the day you sent the notice of your claimReturn period in the lease (days)The lease may set it in CO, ID, ME.

The tenant gave the notice the statute requiresChanges the deadline in AK.Repairs exceed the deposit and need a contractorCan extend the deadline in VA, WV.

Check as of another date

Check as ofDefaults to today. Use it to see where a past or future date stands.

Deductions

What you intend to keep; leave it empty to return everything. An item's age depreciates carpet, paint, blinds and appliances.

Deduction 1

CategoryAmountItem age or install dateNormal wear and tearOrdinary aging: never deductible.

Up to 9 lines.

Documentation

Some states require receipts or dated photos before a deduction stands.

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Computes and cites the published rule; it is not legal advice. You sign the statement: check the statute, your lease and any local ordinance first. Read the disclaimer.

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