Can a California (Berkeley) landlord ask for an extra security deposit?
<p>Just got an email from a non-residential garage space landlord stating that our current yearly rent increase is due.</p>

<p>But it struck me as odd that they also added in a line that says</p>

<blockquote>
  <p>"The security deposit you paid when you first leased space in the
  building was based on a percentage of the monthly rent paid. If your
  monthly rent has moved into a new bracket, then you will see an amount
  below. This additional amount is due and payable with June’s rent. If
  the increase in your security deposit creates a financial burden,
  please see your building manager."</p>
</blockquote>

<p>Is this legal in CA? From a cursory inspection of the law there are tight requirements on what the deposit can be used for and it doesn't have anything to do with a "percentage of rent". It's to pay for the repairs, which would not go up in cost as much even if the rent does. But IANAL. We've been tenants for 3 years and this is the first this has come up.</p>

<p>Presumably the security deposit in your lease is expressed as a percentage of the monthly rent - if the monthly rent changes (up or down) then the security deposit in the lease changes. This is perfectly legal and is the norm in commercial leases.</p>

<p>They can still only use the bond for the permitted purposes - there is just more of it. At the end of your lease the increased amount will be returned to you (subject to legitimate deductions. </p>

<p>In my mind, when I see the question &quot;Is XYZ legal?&quot; it is to be rephrased as &quot;What if any statute forbids XYZ?&quot;</p>
<p>Although the Akerman published in 2020:  Security Deposit Laws (Commercial Lease): State Comparison Chart.  It does provide a list of California specific subject-matter requirements:</p>
<p><a href="https://www.akerman.com/a/web/65420/Security-Deposit-Laws-Commercial-Lease-State-Comparison-Chart.pdf" rel="nofollow noreferrer">https://www.akerman.com/a/web/65420/Security-Deposit-Laws-Commercial-Lease-State-Comparison-Chart.pdf</a></p>
<p>&quot;California does not restrict the amount a commercial landlord can require as a security deposit&quot; would seem to be the relevant  analysis of CA law.</p>

california rental-property tenant