West Hollywood Security Deposit Rules: What the Rent Stabilization Ordinance deposit rule Adds to California Law

A landlord in West Hollywood has to satisfy two sets of rules at once: the California statute, Cal. Civ. Code § 1950.5, and the city's own Rent Stabilization Ordinance deposit rule (WHMC § 17.32.020). The state law sets the 21-day return deadline after the day the tenant moves out; the local ordinance adds rules on interest on the deposit and deposit cap. Where the two overlap, the landlord has to meet the stricter one.

What the Rent Stabilization Ordinance deposit rule adds

• Interest on the deposit: Interest on retained security deposits accrues at a rate set annually by the Rent Stabilization Commission and announced on or before September 1. (WHMC 17.32.020)
• Interest on the deposit: By January 31 of the following year the landlord must pay the interest to the tenant or allow a rent credit; accrued interest is also paid on departure. (WHMC 17.32.020)
• Deposit cap: A security deposit, once established, cannot be raised during the tenancy, and no additional pet deposit may be charged for tenancies beginning on or after March 24, 2022. (WHMC 17.32.020)

Who it covers: Rent-stabilized units in West Hollywood; total deposit may not exceed the state maximum.
Worth knowing: The Rent Stabilization Commission announces the rate by September 1 each year. The current rate could not be confirmed from an official page for this article, so check the city's published notice before calculating interest.

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: interest on the deposit under WHMC § 17.32.020, then deposit cap.
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 WHMC § 17.32.020 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 West Hollywood require interest on security deposits?
A: Yes. Interest on retained security deposits accrues at a rate set annually by the Rent Stabilization Commission and announced on or before September 1. By January 31 of the following year the landlord must pay the interest to the tenant or allow a rent credit; accrued interest is also paid on departure.

Q: Is the West Hollywood deposit return deadline different from California law?
A: No. The Rent Stabilization Ordinance deposit rule 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 Stabilization Ordinance deposit rule apply to my unit?
A: Rent-stabilized units in West Hollywood; total deposit may not exceed the state maximum. 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

• West Hollywood Mun. Code sec. 17.32.020, Rent Stabilization Ordinance deposit rule: code text, 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 West Hollywood, 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.