San Francisco security deposit rules
San Francisco adds its own rules to California’s security-deposit law. Below is each one, quoted from the official text, grouped by what it covers.
Caps and fees
A landlord seeking reimbursement of the annual Rent Board fee may deduct it from the next interest payment owed to the tenant.
“where a landlord seeks reimbursement for the annual Residential Rent Stabilization and Arbitration fee as provided in Section 37A.6 of this Code, the landlord may deduct said fee from the next interest payment owed to the tenant pursuant to this Chapter.”
S.F. Admin. Code § 49.2(e)
Interest
Landlords subject to Cal. Civ. Code § 1950.5 must pay simple interest on all security deposits held at least one year, except where the rent is government-assisted or subsidized.
“A landlord who is subject to the provisions of Section 1950.5 of the California Civil Code shall pay simple interest on all security deposits held for at least one year for his/her tenants; provided, however, that this requirement shall not apply where the rent is assisted or subsidized by any government unit, agency or authority.”
S.F. Admin. Code § 49.2(a)
Accrued interest is due annually on the anniversary of the deposit, as a direct payment or rent credit at the landlord's choice.
“and annually thereafter on the same month and day, a tenant shall be given the unpaid accrued interest in the form of ether a direct payment or a credit against the tenant's rent. The landlord shall choose between these two methods of payment.”
S.F. Admin. Code § 49.2(b)
On termination, a tenant whose deposit was held a year or more is owed pro-rata unpaid interest within two weeks after vacating, though the landlord may keep interest where the deposit alone does not cover lawful deductions.
“Upon termination of tenancy, a tenant whose security deposit has been held for one year or more shall be entitled to a direct pro-rata payment of any unpaid accrued interest no later than two weeks after the tenant has vacated the premises”
S.F. Admin. Code § 49.2(c)
The Rent Board sets the rate effective each March 1, using the annual average of the 90-Day AA Financial Commercial Paper rate for the prior calendar year (rounded to the nearest tenth) as published by the Federal Reserve.
“For March 1, 2015 and each year thereafter, the Rent Board shall calculate the rate according to the annual average of the 90-Day AA Financial Commercial Paper Interest Rate (rounded to the nearest tenth) for the immediately preceding calendar year as published by the Federal Reserve.”
S.F. Admin. Code § 49.2(f)(3)
The SF security deposit interest rate is 4.2% for March 1, 2026 through February 28, 2027 (5.0% for March 1, 2025 through February 28, 2026).
“The rate of interest owed on deposits for the period March 1, 2026 through February 28, 2027 is 4.2%. January 9, 2026 The rate of interest owed on deposits for the period March 1, 2026 through February 28, 2027 is 4.2%.”
SF Rent Board announcement (Jan. 9, 2026) under S.F. Admin. Code § 49.2(f)
If the landlord breaks the rules
Remedies for Chapter 49 violations are those of Cal. Civ. Code § 1950.5(f), (g), (h) and (j), and any tenant waiver of Chapter 49 rights is void.
“The rights, obligations and remedies of tenants and landlords under this Chapter shall be as provided in Subsections (f), (g), (h) and (j) of Section 1950.5 of the California Civil Code. Section 49.4. Waiver.”
S.F. Admin. Code §§ 49.3, 49.4
Who is covered
The interest requirement covers all SF residential rental units, including units exempt from the Rent Ordinance, except government-assisted or subsidized units; no separate Rent Ordinance deposit rule applies to rent-controlled units.
“Interest payments apply to all residential rental units in San Francisco, including those exempt from the Rent Ordinance, with one exception: where the rent for the unit is assisted or subsidized by a government agency, the interest payment requirement does not apply.”
S.F. Admin. Code ch. 49 (SF Rent Board, Security Deposits)
The California rule underneath
| Rule | California law |
|---|---|
| Deadline to return or itemize | 21 days |
| Maximum deposit | 1 month's rent (furnished or unfurnished), for deposits collected on/after July 1, 2024. Small-landlord exception: 2 months' rent if the landlord is a natural person (or LLC of natural persons) owning ≤2 residential rental properties with ≤4 total units — except 1 month for service-member tenants. |
| If the landlord breaks the rules | If the landlord keeps the deposit in bad faith, a court may award up to twice the deposit as a penalty, on top of actual damages (Cal. Civ. Code § 1950.5(m)). |
| Statute | Cal. Civ. Code § 1950.5 (as amended by AB 12, eff. July 1, 2024) |
The full state rule, with the statute quoted: California security deposit law. Where the city rule is stricter, the stricter rule applies to a unit in San Francisco.
What to do
- Keep your lease, the deposit receipt and any move-in checklist — several of these rules depend on them.
- Photograph the unit when you move in and when you move out.
- Give your landlord a forwarding address in writing when you leave.
- If the deadline passes, send a written demand citing the rule above before going to small claims court.
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Every legal statement above is taken from these official texts, read on 2026-10-01.
This page is general information, not legal advice, and using it does not create an attorney-client relationship. Main AI is not a law firm. Laws change and have exceptions; the linked official text controls. For advice about your situation, contact a licensed attorney or a legal-aid office in your state.