Understanding Security Deposits Landlords are allowed to charge a security deposit, and almost all landlords do in San Francisco. Regardless of what the security deposit is called, state law limits the amount a landlord can charge. The total amount charged for any type of security deposit cannot be more that the amount of two months' rent for an unfurnished rental unit or three months' rent for a furnished unit. The landlord typically will require you to pay this amount in addition to your first month's rent. The San Francisco Rent Control Ordinance requires landlords to pay simple interest on security deposits held for at least one year, unless rent is subsidized by any government agency.
Security deposits are refundable under California law.
The law, however, allows landlords to retain part or all of your deposit under certain circumstances. Security deposit refunds also must include any unpaid interest if your rental unit falls under San Francisco's Rent Control Ordinance.