Assembly Bill 12 would prohibit the frequent practice of landlords charging two to three times the amount of monthly rent for a security deposit.
If passed, California would be the 12th state in the country to cap security deposits.
Assemblymember Matt Haney, of San Francisco, who authored the bill, said on Twitter earlier this week that in San Francisco, tenants could be subject to paying an additional $15,000 to move into a $5,000-a-month apartment -- the average cost of a two-bedroom unit in the city.
Those up-front fees are causing renters to take out predatory loans, go into debt or not move at all.
Haney said in a statement, "Landlords lose out on good tenants and tenants stay in apartments that are too crowded or have unsafe living conditions. Creating a rental deposit cap is a simple change that will have an enormous impact on housing affordability for families in California."
Often times landlords say these extra fees help them keep up with the increasing costs of repairs for units. Haney said the bill would not prevent landlords from fining tenants who cause damage to apartments that is higher than the amount of the security deposit.
