Effective on July 1, 2024, landlords are now barred from asking for or receiving security deposits exceeding one month’s rent. Prior to the onset of AB12, limits were placed on landlords collecting security deposits at two months’ rent for unfurnished properties and three months’ rent for furnished ones. Landlords still have the right to seek damages beyond the security deposit amount in cases of property damage caused by tenants. Small landlords owning no more than two properties with a maximum of four units are exempt from the provisions of AB 12. Some interpretations suggest that owning properties under different names or entities might qualify for the exemption, but the law is unclear.

Under the California Fair Employment and Housing Act (“FEHA”), housing providers cannot discriminate against tenants based on their source of income. Effective January 1, 2024, a new law amending FEHA requires housing providers to offer tenant applicants who receive government subsidies the right to have their rental application evaluated based on their “ability to pay” instead of their credit history.