AB 414 electronic security deposit refunds and roommates
AB 414: California Deposit Refunds
Paid rent online in California? AB 414 addresses electronic deposit refunds and shared leases. Check the roommate agreement and refund instructions.
If you paid rent or your deposit electronically, California law generally calls for an electronic refund unless you agree in writing to another method. Shared leases have a separate rule: multiple adult tenants should confirm the refund arrangement together. Do not assume the person who paid through the portal receives everything.
The Department of Real Estate’s May 2026 legislative update highlights AB 414’s changes to deposit-return methods and multiple-tenant refunds. This is a current move-out issue, rather than a new rule announced this month. Read DRE’s summary.
How does AB 414 apply to roommates?
Under Civil Code section 1950.5(h), the general electronic-return rule applies when the landlord received rent or the deposit electronically. A designated bank account or an agreed electronic method requires written instructions or agreement as specified in the statute. A written agreement can provide another return method.
For multiple adult tenants, the default is generally a check payable to all adult tenants on the lease when the tenancy ends. A mutual written agreement involving the landlord and all adult tenants can specify a different arrangement, including allocation among tenants and delivery of the statement. The law contains a separate exception for certain terminations under section 1946.7. Read the current statute.
That distinction matters before a roommate moves away. Start with the names on the current lease and ask the manager how the refund will be issued. Do not rely on the name attached to the online payment account.
Does an electronic refund replace the deposit statement?
A refund agreement should make the payment destination clear. A deduction dispute concerns how much should be returned. Keep those conversations distinct so that agreement about an account does not obscure an unresolved charge.
For example, your message can have two short paragraphs. The first asks the manager to confirm the return method and recipients. The second identifies any deduction you dispute and asks for the supporting explanation. Avoid writing “everything is settled” if you only mean that the destination account is correct.
Electronic payment also does not replace the itemized statement. DRE explains that email delivery of the statement is available by mutual agreement. Confirm the email address separately from the account receiving money, especially if a roommate usually handles the property portal.
What should roommates put in the refund agreement?
As a practical preparation step, draft a short instruction for everyone to review. Include:
- The rental address and names on the ending lease.
- The requested refund method and recipient or recipients.
- The agreed percentages if the refund will be split.
- The person receiving the statement and the agreed delivery method.
- A date and space for each required participant’s agreement.
Ask the landlord to confirm the arrangement in writing. If there is disagreement about who contributed what, preserve the payment records and seek advice rather than presenting one roommate’s preferred split as everyone’s agreement.
Use a secure channel to provide financial details. A message confirming the refund arrangement does not need to reproduce a full account number in a group conversation. Keep a copy of the final agreement somewhere you can access after leaving the property.
A hypothetical two-roommate move-out
Suppose Elena and Marcus share a California apartment. Elena has paid the landlord through an online portal, while Marcus has reimbursed Elena privately. They plan to move to different cities.
They should not assume the landlord will send the entire refund to Elena merely because the portal lists her bank account. Before move-out, they can ask for a written arrangement specifying recipients, allocation, and statement delivery. Their private reimbursement history is useful evidence for their discussion, but it does not substitute for the agreement the statute describes.
If Marcus cannot be reached, Elena can ask the manager what will happen under the default process and get advice about unresolved ownership of the funds. Inventing consent or signing for an absent roommate would create a separate problem.
What if the payment has not arrived?
Keep the refund agreement, move-out record, and transfer or check information together. Ask the manager to confirm the amount, date, recipients, and any transaction reference. Check for a returned transfer or address error without abandoning a separate dispute about deductions.
California’s general deadline for the accounting and remaining refund is 21 calendar days after the tenant vacates; the statute also addresses estimates and later supporting documents. Verify how those provisions apply if the accounting is incomplete. Our California deposit demand-letter guide covers organizing the next request.
Questions about electronic deposit refunds
Can the landlord send the entire refund to one roommate?
For multiple adult tenants, the general default is a check payable to all adult tenants on the ending lease. A mutual written agreement with the landlord and all adult tenants can specify another arrangement. The statute also has a special exception for certain safety-related departures.
What if I want a paper check after paying rent online?
The general electronic-return rule allows the landlord and tenant to agree in writing to another method. On a shared lease, confirm the applicable multiple-tenant requirements as well. Keep the agreed instructions with your deposit evidence packet.
SecurityDepositHelpAI provides legal information, not legal advice, and is not a law firm. This article addresses residential move-out refunds, not how departing roommates must settle every contribution during an ongoing tenancy. Get individual advice for a disputed lease change, safety-related departure, or contested split.