Landlords beware! You still have the obligation to provide your tenants with an accounting of their security deposit, even if you file an unlawful detainer action and the court awards you a money judgment for past due rent. Failure to send an accounting of the use of a security deposit within 21 days as prescribed in California Civil Code § 1950 et seq. results in the landlord losing the ability to deduct past due rent or damages from a security deposit.

[See: CA Civil Code § 1950.5(e); Granberry v. Islay Investments(1995) 9 C4th 738, 745)]. You will be obligated to return the entire security deposit to your tenants. Id. Holding your tenants’ deposit without an accounting and after demand for its return could subject you to a lawsuit from your tenants for double the amount of the security deposit in addition to being ordered to return the initial deposit. [See CA Civil Code § 1950.5(l)].

So landlords, please give an accounting of your tenants’ security deposit. You can give your tenants this accounting in person or by mail. If you do it by mail, I highly recommend you get your tenants’ most current address and mail it both regular and certified mail to show proof of mailing. If you do not have a current mailing address, you can always use a last known address. A simple accounting of your tenants’ security deposit can save you time and headache down the road if you end up using the deposit for past due rent and/or repairs.