San Francisco Apartment Association
SFAA Magazine Archives

November 2002

Sacramento Report

Walk-Through Process Mandated by Migden's New Bill

by Debra Carlton

Governor Davis signed a new bill (AB 2330) on September 29, 2002, that requires rental property owners to perform a walk-through inspection with residents no earlier than two weeks prior to the termination of the tenancy. The intent of this new law is to give residents an opportunity to remedy identified deficiencies in the unit prior to the date for moving out. The following steps describe this mandated process.

Scheduling the Inspection

  • Within a reasonable time after notification of either party’s intention to terminate the tenancy or before the end of the lease term, the owner shall notify the resident in writing of (1) the resident’s option to request an initial inspection and (2) the resident’s right to be present at the inspection.
  • The purpose of the initial inspection is to allow the resident an opportunity to remedy identified deficiencies in a manner consistent with the rental agreement, in order to avoid deductions from the security deposit.
  • If requested by the resident, the owner or an agent of the owner will make an initial inspection of the premises at a reasonable time, but no earlier than two weeks before the termination of the tenancy or the end of the lease date. (This inspection is in addition to any final inspection the owner may make after the resident has vacated the premises.)
  • If a resident chooses not to request an initial inspection, no further action on the part of the owner is required.
  • If the resident requests an inspection, the parties will attempt to schedule the inspection at a mutually acceptable date and time.
  • If there is agreement for a mutual time for the inspection, the owner will provide at least a 48-hour prior written notice indicating the date and time of the inspection. If a mutually agreed time cannot be scheduled, the owner must give at least a 48-hour written notice to the resident prior to the date and time of an inspection. In this case, the resident does not need to be present during the inspection.
  • Both the resident and the owner may agree to forego the 48-hour prior written notice by each signing a written waiver.
  • The owner will proceed with the inspection whether the resident is present or not, unless the resident previously withdrew his or her request for the inspection.

Itemized Statement

  • Based on the inspection, the owner will provide the resident with an itemized statement specifying proposed repairs or cleaning that will form the basis of any legally permissible deduction from the security deposit.
  • This itemized statement must include the actual text of specified sections of the security deposit law. The statement must be given to the resident, if the resident is present for the inspection, or left by the owner inside the premises if the resident is not present.

Resident’s Opportunity to Correct

The resident will have an opportunity during the period following the initial inspection until termination of the tenancy to remedy identified deficiencies in a manner consistent with the rental agreement, in order to avoid deductions from the security deposit.

Owner’s Rights

1. The owner has the right to use the security deposit for deductions itemized in the statement that are not corrected by the resident, so long as the deductions are allowed by law.

2. The owner is allowed to use the security deposit for:

  • Default by the resident in the payment of rent;
  • Repair of damages to the unit, exclusive of ordinary wear and tear, caused by the resident or the resident’s guests;
  • Cleaning the unit in order to bring it to the same level of cleanliness at the inception of the tenancy;
  • Failure of the resident to restore, replace, or return personal property or appurtenances;
  • Damage to the unit that occurred between completion of the initial inspection and termination of the tenancy; and
  • Damage to the unit not identified by the owner during the initial inspection due to the presence of the resident’s possessions.

Increased Penalties for Bad Faith Retention of Security Deposit

The bad faith claim or retention by the owner of the security deposit or any portion thereof in violation of this law may subject the owner to statutory damages up to twice the amount of the security deposit, in addition to actual damages. (Current law imposes a penalty up to $600 in addition to actual damages for the bad faith retention of the security deposit by the owner.) The court may award damages for bad faith whenever the facts warrant such an award, regardless of whether the injured party has specifically requested relief. In any action under this section, the owner has the burden of proof regarding the reasonableness of the amounts claimed.

For more information regarding CAA please go to website. The opinions expressed in this article are those of the author and do not necessarily reflect the viewpoint of the SFAA or the SF Apartment Magazine. Debra L. Carlton is the Vice President of Policy and Research for the California Apartment Association and is CAA’s chief lobbyist. © Copyright 2002.