AB 414 — Electronic Deposit Returns in California, Step by Step

What AB 414 actually changed

Through 2025, California landlords were required to return deposits by paper check (or cash) and mail the itemized statement with printed receipts. The §1950.5(g) text was written before electronic payment was standard, and out-of-state move-outs were the worst-affected — paper checks following a forwarding address sometimes took weeks.

AB 414 amended §1950.5(g) to allow electronic delivery of both the refund and the itemized statement. The 21-day deadline didn't change. The new requirement: express written tenant consent.

Step 1 — get the consent in writing

Electronic return is opt-in, not default. The tenant has to affirmatively consent in writing to:

• The specific electronic method (ACH, Zelle, Venmo, PayPal, etc.)
• The specific account or destination
• Receiving the itemized statement and any supporting receipts in electronic form

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.

Step 2 — the 21-day clock didn't change

AB 414 changed how the refund travels, not when it's owed. Twenty-one calendar days from tenant move-out to:

• Return the security deposit (or the remaining balance after lawful deductions)
• Provide an itemized statement of any deductions
• Provide copies of receipts for any deduction over $125 (or all deductions if the tenant requests in writing)

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.

Step 3 — send the statement electronically (correctly)

With consent, the itemized statement and receipts go by email too — typically as a single PDF. The email that holds up contains:

• The itemized statement as a PDF (clear line items, totals, balance returned)
• Photos and receipts as attachments or links
• Confirmation of the electronic refund (ACH transaction ID, Zelle confirmation number, etc.)

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.

Step 4 — update the move-out workflow

NGC and most professionally managed portfolios already updated move-out flows to default-offer electronic return. Self-managers should add the consent step to the checklist:

• Add "electronic return consent" to your move-out instruction packet
• Include a fillable consent field in your move-out walk-through form
• Set up an ACH-capable account or business Zelle/Venmo account specifically for tenant refunds
• Build a standard itemized-statement PDF template with line items, photo placeholders, and a totals block

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.

Common questions