What Does "No Security Deposit" Mean on a Lease?

California law says that your landlord can charge you up to two months rent as a security deposit. The deposit covers the cost of damages caused by you during your tenancy. If you keep the rental unit in good shape, your landlord has to return the deposit to you when your lease ends. A "no security deposit" lease means what it says: the landlord doesn't require a deposit.

Be Careful

A security deposit is an advance payment against potential damage. Even without one, your landlord can still demand that you pay for damages such as holes in the carpet or burns on the counter. Or, she could sue you over alleged damages. Even without a security deposit, you and the landlord should do a walk through of the rental unit before you move in, identifying the problems are already there. Take photos so that if there's a dispute later, you can show that, for example, the carpet had scorch marks before you ever moved in.


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