How AB 414 modernizes the §1950.5 21-day deposit return rule for the digital era — and the new tenant-consent requirements.
AB 414 (effective Jan 1, 2026) lets California landlords return security deposits electronically (ACH, Zelle, Venmo, etc.) with the tenant's express written consent. The 21-day return deadline still applies. Itemized statements can also be delivered electronically.
Until January 1, 2026, California landlords were required to return security deposits via paper check (or cash) and to deliver the itemized statement and supporting receipts in printed form via mail or in person. The §1950.5(g) text was written before electronic payment was ubiquitous, and many tenants — especially out-of-state move-outs — found the paper-check requirement frustratingly slow.
AB 414 amended §1950.5(g) to allow electronic delivery of both the deposit refund and the itemized statement, but only when the tenant has given express written consent. The 21-day return deadline is unchanged.
Electronic deposit return is opt-in, not default. The tenant must affirmatively consent in writing to:
Best practice: build the consent option into your move-out notice. Provide a checkbox or short form: "I consent to receiving my security deposit refund and itemized statement electronically via [method] to [account]." Without express consent, the default paper-check rule still applies.
AB 414 did not change the underlying §1950.5 timeline. Landlords still have 21 calendar days from the tenant's move-out to:
What AB 414 changes is the method of delivery, not the timing. An electronic return on day 22 still creates §1950.5 liability — just like a paper check on day 22 did before.
The itemized statement (and supporting receipts) can also be delivered electronically — typically as a PDF attached to email — when the tenant has consented. Best practice is a single email containing:
Save the email and all attachments to the tenant's permanent file. The §1950.5 dispute window is one year, and your documentation is your defense.
NGC and other professional property managers have already updated move-out workflows to default-offer electronic return. Owners self-managing should update their move-out checklist to include the consent step. Specifically:
Owners using property management software (AppFolio, Buildium, RentRedi) should check whether the AB 414 update is already wired into the platform's move-out workflow — most have shipped updates by Q1 2026.
Yes, under AB 414 (effective January 1, 2026), California landlords can return security deposits electronically (ACH, Zelle, Venmo) — but only with the tenant's express written consent specifying the method and account.
It's opt-in. The tenant must consent in writing. Without consent, the prior paper-check rule still applies. Landlords cannot force electronic refund on tenants who prefer paper.
No. The 21-day window from tenant move-out to return of deposit + itemized statement is unchanged. AB 414 only changed the permitted delivery methods.
Yes, with the same tenant consent. Typically delivered as a PDF email attachment along with photo evidence and receipts.
Save the consent form, the electronic transaction confirmation, and the PDF itemized statement in the tenant's file. The §1950.5 dispute window is one year.
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