Deposit

• In California, a landlord may pre-charge up for twice the amount of the monthly rent for unfurnished property. For furnished property, landlords are entitled to charge up to three times the amount of the monthly rent. For commercial properties, landlords have no imposed restrictions on the amount of security deposit that they may charge. This is usually because the cost of commercial properties can differ so vastly, that it is up to the landlord to decide what is suitable. All deposits must be paid in advance and in addition to the rent.
  
  

Damage

• Pre-charged deposits are typically held in the event that damage is caused to the apartment, which may reduce the value or desirability in the event that the tenant leaves. It may also cover the cost of removing and dumping materials that were left behind by the tenant, or for the cost of repairing or replacing items in the apartment. That's why it is important for the tenant to go over with the landlord the condition of the apartment prior to moving. Landlords may even have you sign a form indicating that you both have gone over the condition of the apartment and noted any flaws, such as nicks in the wall or paint or damage to the carpet.
  
  

Move Out

• The landlord has a legal obligation to provide the deposit to the tenant within three weeks of the tenant's move-out date, so long as the tenant has left the rental unit in similar condition prior to the move-in date. The landlord may deduct from the pre-charge holding deposit an unspecified by reasonable amount to fix major repairs. If there was no substantial damage to the apartment, the landlord is not entitled to use the deposit to paint, replace carpets or curtains if they were not damaged by the tenant. However, they may deduct for the cost of cleaning the apartment. Within two weeks of the move-out date, the landlord is entitled to contact the tenant in writing and notify him of his right to be present of a walk-through of the apartment that would reveal its condition.
  
  

Contract

• Depending on the terms of the pre-holding deposit arrangement, the deposit may be used to pay for the last month of rent. This usually occurs on monthly rental agreements when the tenant fails to give at least 30 days notice of moving out. The best way to determine how your pre-holding deposit will be used is to discuss this with the landlord and to read the signed contract. Although, just a side note, although some landlords may indicate that holding deposits are non-refundable, they are not legally permitted to withhold the deposit, regardless of whether this is indicated in writing. In the state of California, there is no such thing as a non-refundable deposit.