Answer
Mar 23, 2026 - 08:43 PM
Hi Chumley@740,
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n California, an “extra deposit” doesn’t become refundable just because time has passed. What matters is what that payment actually was.
If it was part of the security deposit, regardless of how it was labeled, it’s held for the duration of the tenancy and only accounted for when the tenant moves out. There’s no requirement to return it mid-lease.
However, if the payment was really prepaid rent or an overpayment, it shouldn’t just sit there. It needs to be applied to rent or returned. And if the total deposit collected exceeded California’s legal limits, the excess may need to be refunded.
So the key isn’t when it was collected but how it was classified.
Disclaimer: All content provided here-in is subject to AAOA’s Terms of Use. Nothing contained on this website constitutes tax, legal, insurance or investment advice, nor does it constitute a solicitation or an offer to buy or sell any security or other financial instrument. AAOA recommends you consult with a financial advisor, tax specialist, attorney or other specialist who is able to properly advise you.
