Free California Cash for Keys Agreement Template

Last reviewed July 2026

Written by LawLease Editorial

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California Cash for Keys Agreement

This Cash for Keys Agreement is built with California as the governing state. These are the California landlord-tenant rules that most often bear on it, with the statute for each.

California rules at a glance

California rules for a Cash for Keys Agreement
Security deposit limit	1 month’s rent (up to 2 for small landlords who own ≤2 properties / ≤4 units); one cap covers any pet depositCiv. Code §1950.5 (AB 12)
Deposit return	21 days with an itemized statement and move-out photosCiv. Code §1950.5(g)
No separate pet deposit	Pet deposits must fit inside the one-month cap; service and assistance animals are exempt from any pet deposit or pet rent.
Month-to-month termination	30 days (tenant <1 yr) · 60 days (tenant ≥1 yr); tenant gives 30 daysCiv. Code §1946.1

Security deposits in California

As of July 1, 2024 (AB 12), most California landlords may collect no more than one month’s rent as a security deposit — furnished or unfurnished — and a single cap covers any pet deposit.

Small-landlord exception — A landlord who is a natural person (or an LLC of natural persons) owning no more than two properties totaling four or fewer units may charge up to two months’ rent — but servicemembers are always capped at one month (§1950.5(c)).
No separate pet deposit — Pet deposits must fit inside the one-month cap; service and assistance animals are exempt from any pet deposit or pet rent.
Return — The deposit and an itemized statement are due within 21 days of move-out, with copies of receipts for any repair or cleaning charge over $125 (§1950.5(g)).
Photos — Landlords must take timestamped move-out photos (and, for tenancies starting on or after July 1, 2025, move-in photos) to support any deductions (AB 2801).
Pre-move-out inspection — The tenant may request an inspection up to two weeks before leaving; the landlord gives 48 hours’ notice and a list of deficiencies so the tenant can fix them first (§1950.5(f)).
Bad-faith penalty — Wrongfully withholding a deposit exposes the landlord to up to twice the amount withheld, plus actual damages (§1950.5(l)).

Tenant protections you can’t waive

Non-waivable rights — A lease can’t make a tenant waive their security-deposit or entry-notice rights, or the right to sue the landlord (§1953).
No separate pet deposit — Beyond the one-month cap (§1950.5(c), post-AB 12).
No check or notice fees — SB 611 bars charging tenants to pay by check or to receive a legal notice.
Source of income — Refusing a tenant because they pay with a Section 8 voucher is illegal statewide (Gov. Code §12955).

California Cash for Keys Agreement FAQs

How much can a landlord charge for a security deposit in California?

Since July 1, 2024, most landlords may charge no more than one month’s rent, furnished or unfurnished (AB 12). A small landlord — a natural person owning two or fewer properties totaling four or fewer units — may charge up to two months, except for servicemembers, who are always capped at one month (§1950.5).

How much notice does a landlord need to end a month-to-month tenancy in California?

30 days if the tenant has lived there under a year, and 60 days if a year or more; a tenant gives 30 days either way. After 12 months, the landlord also needs a valid “just cause” under the Tenant Protection Act, not just the notice (§§1946.1, 1946.2).

How long does a landlord have to return a deposit in California?

21 days after move-out, with an itemized statement, receipts for repair or cleaning charges over $125, and move-out photos. Withholding in bad faith can cost the landlord up to twice the amount wrongfully kept (§1950.5).

Cash for Keys Agreement in other states

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