Santa Monica Security Deposit Rules: What the Rent Control Board Regulations 14002 and 14003 Adds to California Law

A landlord in Santa Monica has to satisfy two sets of rules at once: the California statute, Cal. Civ. Code § 1950.5, and the city's own Rent Control Board Regulations 14002 and 14003 (Rent Control Board Reg. 14002). The state law sets the 21-day return deadline after the day the tenant moves out; the local ordinance adds rules on deposit cap and interest on the deposit. Where the two overlap, the landlord has to meet the stricter one.

What the Rent Control Board Regulations 14002 and 14003 adds

• Deposit cap: Under Regulation 14002 an owner may not increase the security deposit once established for tenants who moved in on or after January 1, 1999. (Reg. 14002)
• Interest on the deposit: The Rent Board states its regulations do not require an owner to pay interest on security deposits. (Rent Board security deposits page)

Who it covers: Rent-controlled units in Santa Monica; Regulation 14003 governs pre-1999 tenancies.
Worth knowing: The Rent Control Board states its regulations do not require interest on deposits, so state law alone governs interest and the return deadline. The regulation text itself was not read for this page; the summary comes from the Board's official page.

What California law already requires

• Return deadline: 21 days after the day the tenant moves out.
• Itemized deductions: required in writing. Itemized statement with copies of receipts or invoices for any repair or cleaning charge over $125; since 2025 landlords must photograph the unit at move-in and move-out to support deductions.
• Forwarding address: not a statutory condition of getting the deposit back.
• Penalty for wrongful withholding: For bad-faith retention the tenant may recover statutory damages of up to twice the deposit, on top of actual damages.
• Deposit cap: One month's rent (two months for qualifying small landlords) under AB 12, effective July 1, 2024.
• Small claims limit: $12,500.
• Statute: Cal. Civ. Code § 1950.5.

Using both rules together

1. Read the lease for the deposit amount, the move-in date, and any clause that mentions the ordinance.
2. Check the local rule first: deposit cap under Rent Control Board Reg. 14002, then interest on the deposit.
3. Count the California deadline of 21 days from the day the tenant moves out.
4. A written demand that cites both Cal. Civ. Code § 1950.5 and Rent Control Board Reg. 14002 carries more weight than one that cites either alone. For bad-faith retention the tenant may recover statutory damages of up to twice the deposit, on top of actual damages.

Frequently Asked Questions

Q: Does Santa Monica require interest on security deposits?
A: Yes. The Rent Board states its regulations do not require an owner to pay interest on security deposits.

Q: Is the Santa Monica deposit return deadline different from California law?
A: No. The Rent Control Board Regulations 14002 and 14003 does not change the return deadline, so the California rule applies: 21 days after the day the tenant moves out under Cal. Civ. Code § 1950.5.

Q: Does the Rent Control Board Regulations 14002 and 14003 apply to my unit?
A: Rent-controlled units in Santa Monica; Regulation 14003 governs pre-1999 tenancies. Check the section cited below for the full list of exemptions before relying on it.

Q: Can I sue my landlord in small claims court for my California deposit?
A: Yes. California small claims court hears claims up to $12,500, which covers most deposits plus the statutory penalty. A dated written demand that cites Cal. Civ. Code § 1950.5 is the usual first exhibit.

Sources Checked

• Santa Monica Rent Control Board Regs. 14002, 14003 (City Charter art. XVIII), Rent Control Board Regulations 14002 and 14003: official page, read 2026-09-20
• Cal. Civ. Code § 1950.5 (the California statute cited above)
• LeaseLenses California deposit data set, last reviewed 2026-09-19; the same data powers the California demand letter tool
• California landlord-tenant overview and the California deposit rules page

This page is general legal information for Santa Monica, California, not legal advice. Local ordinances are amended more often than state statutes; read the current code text before relying on a figure in court.