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Berkeley · Renting & eviction

Security deposits in Berkeley

Berkeley landlords pay simple interest on security deposits once a year in December, and the remaining interest when the tenant moves out.

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Key points

  • Deposit interest: Berkeley landlords pay simple interest on security deposits once a year in December, and the remaining interest when the tenant moves out.

Each rule below links to the section of the Berkeley Municipal Code it was read from, with the code text one click away (checked October 2026). General information, not legal advice.

What Berkeley's code says

Berkeley code What Berkeley's code adds
When interest is paid
  • Once a year, in December.
    Covers interest earned through October 31.
    § 13.76.070 · code text
    The interest accrued by said payment or deposit through October 31st of each year shall be returned to the tenant annually in December of each year, either through a rent rebate or cash payment
  • When the tenant moves out.
    Covers the remaining interest earned since the last October 31.
    § 13.76.070 · code text
    Upon the tenant’s departure from the premises, the balance of any interest accrued since the last October 31st shall be paid at the average monthly rate from the last November 1st to the date of departure and shall be returned to the tenant along with the appropriate part of the principal and any prior unpaid interest.
Interest on deposits
  • Yes; simple interest at the average rate banks in the City pay on 6-month CDs.
    § 13.76.070 · code text
    shall accrue simple interest at the rate equal to the average rates of interest paid on six-month certificates of deposit by banks doing business in the City

The California rule underneath

CA state law Underneath, California law still applies. Security deposit cap: One month's rent, on top of the first month's rent (Civ. Code § 1950.5(c)(1), (c)(6)). Deposit return deadline: 21 calendar days after the tenant moves out, with an itemized statement of any deductions (Civ. Code § 1950.5(h)(1)). California security deposit law — the full state rule →

Who this affects

TenantsLandlordsProperty managers

Frequently asked questions

How much can a Berkeley landlord charge for a security deposit?

Berkeley landlords pay simple interest on security deposits once a year in December, and the remaining interest when the tenant moves out.

General information, not legal advice.

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Ask GoCodebook how Berkeley's security deposits rules apply to your situation and get an answer that cites the section.

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