Happy Saturday, Housing Heroes,

One of the most common questions I get from clients is: “What can I actually use the security deposit for, and what counts as normal wear versus damage?”

It’s a great question and one that gets trickier in California with our strict deposit laws and the new requirements under AB 2493. The short answer is: you can absolutely recover real costs from a deposit, but you need to be fair, consistent, and have good documentation.

Here’s how we handle it at Good Life:

What Can You Use a Security Deposit For?

Here at Good Life, we keep things simple and always follow the law. When it comes to security deposits, here’s what you can actually use them for:

• Unpaid rent (including utilities, if the lease says they’re the resident’s responsibility)
• Repairs for damages caused by the resident or their guests, but not normal wear and tear
• Cleaning costs to bring the home back to the level of cleanliness it was at move-in
• Replacing items like keys, furniture, or fixtures if the lease allows it, as long as the issue isn’t just wear and tear

Anything else you want to charge must be “reasonable” and able to hold up in court if challenged. That’s why we take such care with evidence, photos, invoices, and detailed itemizations.

Normal Wear & Tear (Your Responsibility)

This is the stuff that happens naturally when people live in a home. You can’t charge for it, even if it means some touch up work when they move out. Examples include:

• Minor chipped or peeling paint
• Faded paint or wallpaper from sunlight
• Rust on kitchen or bathroom fixtures
• Normal carpet or flooring wear
• Furniture marks on carpet
• Loose grout or slightly warped doors from age or moisture
• Small nail holes from a reasonable number of pictures
• Dirty blinds or curtains

Wear and tear is subjective, but here’s a good test: If you had to explain it to a judge, would they agree it’s just the result of someone living in a home over time?

Resident Damage (Deductible)

This is where deposits come in to protect you. If something is broken, stained, or damaged due to misuse, neglect, or unauthorized changes, it’s fair to charge for it. Examples:

The “Useful Life” Rule

Even with clear damage, you can’t always charge the full replacement cost. California requires you to factor in the item’s age. For example:

• Carpet: 7 years
• Water heater: 10 years
• Refrigerator: 10 years
• Paint: 2–3 years
• Window blinds/screens: 3 years

So if a carpet is already 6 years old, you can only charge a fraction of replacement costs. Same with paint, you can only charge a portion based on how long the resident lived there.

Example: If repainting costs $1,000, and $200 is due to resident damage, but they lived in the home for a year, their share would be $133 (two-thirds of $200).

Why This Matters

Being fair doesn’t mean leaving money on the table, it means charging for what you can reasonably prove while staying compliant with California law.

This approach:

• Protects your investment (real damage is recovered)
• Keeps you out of disputes (residents can’t argue with photos and receipts)
• Builds trust (residents know they won’t be unfairly charged, and owners know they won’t eat unnecessary costs)

Final Thoughts

Security deposits aren’t about squeezing residents, they’re about keeping your housing business financially healthy while staying on the right side of California law.

Now I’d love to hear from you:

• Do you think our approach strikes the right balance?
• Do you have a security deposit story (good or bad) that’s stuck with you?

Hit reply and share your thoughts, I read every response personally. The more we learn from each other, the stronger we all get.

AB 2801: The Security Deposit Update California Landlords Need to Know

​

​

Steve Welty CEO @ Good Life Property Management DRE #01744610 ​​​​

5252 Balboa Ave #704, San Diego, California 92117
​Unsubscribe · Preferences​