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Free California Mutual Lease
Termination Agreement Template

Last reviewed July 2026

Written by LawLease Editorial

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California Mutual Lease Termination Agreement

This Mutual Lease Termination 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 Mutual Lease Termination Agreement
Month-to-month termination30 days (tenant <1 yr) · 60 days (tenant ≥1 yr); tenant gives 30 daysCiv. Code §1946.1
Security deposit limit1 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 return21 days with an itemized statement and move-out photosCiv. Code §1950.5(g)
No separate pet depositPet deposits must fit inside the one-month cap; service and assistance animals are exempt from any pet deposit or pet rent.

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 Mutual Lease Termination 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).

More California landlord documents

Mutual Lease Termination Agreement in other states

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