An individual owner (2 rentals, 4 units at most) may ask for 2 months, but not from a service member.
From the California Legislature, read Oct 1, 2026.Show the law
“a landlord shall not demand or receive security, however denominated, in an amount or value in excess of an amount equal to one month’s rent, in addition to any rent for the first month paid on or before initial occupancy …”
State law applies here too. Where both cover a rental, the stricter city rule usually wins; each rule below says so.
California lawIn force
California security deposit cap and handling (AB 12)
How big can the deposit be?
Max 1 month's rent.
An individual owner (2 rentals, 4 units at most) may ask for 2 months, but not from a service member.
Who it covers
Covers: Security for rental agreements of residential property used as the tenant's dwelling.
In force since
Jul 1, 2024
Current version since
Jan 1, 2026
The law, word for word
“a landlord shall not demand or receive security, however denominated, in an amount or value in excess of an amount equal to one month’s rent, in addition to any rent for the first month paid on or before initial occupancy …”
The Los Gatos Rental Dispute Mediation and Arbitration Ordinance (Town Code ch. 14, art. VIII) covers rent increases, mediation and arbitration. It sets no local security deposit rule. The Town's FAQ says deposit-return disputes are outside the program. State law, Cal. Civ. Code § 1950.5, governs deposits.
The law, word for word
“(c) (1) Except as provided in paragraph (2), (3), or (5), a landlord shall not demand or receive security, however denominated, in an amount or value in excess of an amount equal to one month’s rent, in addition to any rent for the first month paid on or before initial occupancy …”