Plain English Breakdown
The official text does not provide a specific effective date, though it notes the bill was chaptered in October 2025.
AB-414: New Rules for Returning Security Deposits
This law changes how landlords must return security deposits, requiring electronic returns if the tenant paid electronically and setting new rules for units with multiple adult renters.
What This Bill Does
- Requires landlords to generally return remaining security by personal delivery or a check made payable to the tenant.
- Mandates that landlords return security electronically if they originally received rent or deposits from the tenant using electronic methods, unless both parties agree in writing to another method.
- Requires landlords who accept electronic payments to notify tenants in writing about their right to receive their deposit back electronically.
- Allows landlords and tenants to mutually agree to send the itemized statement of deductions by email instead of mail or personal delivery.
- Sets specific rules for returning deposits when multiple adult tenants live in one unit, requiring checks payable to all adults unless a written agreement says otherwise.
Who It Names or Affects
- Landlords who rent out residential properties
- Tenants living in rental units
- Housing situations with multiple adult tenants sharing an apartment or house
Terms To Know
- Security deposit
- Any payment, fee, deposit, or charge imposed at the start of a tenancy to reimburse a landlord for costs like processing fees or as advance rent.
- Itemized statement
- A written list showing exactly how much was taken from the security deposit and why.
Limits and Unknowns
- The official text does not specify an effective date.
- The specific details of what must be included in a mutual written agreement are described as 'specified provisions' but not fully listed here.
- This summary covers only the changes made by this bill and relies on existing laws for general rules about how much security can be charged.