Last updated 2026-07-26
TL;DR
Landlords typically require a security deposit (often one to two months' rent, though some states cap it lower or higher), first month's rent, and increasingly proof of renters insurance. Exact amounts and rules depend entirely on state law and, in licensed rental cities, local ordinance. Always get deposit terms in writing before you hand over money.
What will the landlord require you to deposit before move-in?
| California | 1 month's rent (most cases) | Cal. Civ. Code Section 1950.5 [1] | |
|---|---|---|---|
| New York | 1 month's rent | NY RPL Section 7-108 [2] | |
| Texas | No statutory cap | Tex. Prop. Code Section 92.101 (no cap set) [3] | |
| Illinois | No statewide cap (Chicago has its own ordinance) | 765 ILCS 710 [4] | That table alone should tell you why 'what will the landlord require you to deposit' has no single national answer. It's state law first, city ordinance second, and lease language third. |
Most landlords ask for three things before you get keys: first month's rent, a security deposit, and, more and more often, proof of renters insurance. Some also charge a separate pet deposit or a last month's rent payment upfront, though that's less universal. The security deposit is the big one. It's meant to cover unpaid rent, damage beyond normal wear and tear, or cleaning costs after you move out. Amounts vary a lot by state. California caps deposits at one month's rent for unfurnished units under most circumstances (with some higher allowances tied to specific tenant categories), following a 2024 change to Civil Code Section 1950.5 [1]. New York caps deposits at one month's rent statewide under the Housing Stability and Tenant Protection Act of 2019 [2]. Other states, like Texas, have no statutory cap at all, so the number is whatever the lease says and the market will bear. If you're a landlord managing 1 to 10 units in a city with mandatory rental licensing, your deposit policy has to line up with two layers of rules: state landlord-tenant law (which governs deposit caps, holding requirements, and return deadlines) and your city's rental ordinance (which may add its own inspection or registration prerequisites before you can even legally rent the unit). Confirm both with your city rental licensing office before you set deposit terms in a new lease. Here's a rough comparison of how deposit rules differ by state, just to show the range: | State | Deposit cap (unfurnished unit) | Statute |
How to become a landlord in a licensed rental city
Becoming a landlord isn't just buying a property and putting up a listing. In cities with mandatory rental licensing, you need to register the unit, sometimes pass an inspection, and get a license or permit number before you can legally rent it out or renew an existing lease. The general sequence looks like this in most licensing cities: you register the property with the city (often through a housing or code enforcement department), pay a registration or license fee, schedule and pass a habitability inspection, and then receive a certificate or license number that's often required on the lease itself or in a public notice to tenants. Skipping this step is where most first-time landlords get hit with fines. Fees and inspection cycles differ enormously by city. Confirm your specific city's fee schedule, inspection frequency, and renewal deadline with your city rental licensing office, since these change often and a wrong number here can cost you a fine you didn't need to get. Once you're licensed (where required), the actual landlording work starts: setting a legal deposit amount, drafting a lease that matches state and local law, screening tenants under fair housing rules, and getting the property inspection-ready before every tenant turnover if your city requires that. If you want a structured way to track city-specific licensing steps, deposit rules, and inspection prep in one place, the City Rental License & Inspection Prep Packet is a $79 one-time tool built for exactly this gap between state law and city ordinance.
What is landlording, exactly?
Landlording is the ongoing work of owning and managing a rental property: collecting rent, maintaining the unit, handling repairs, following state and local law, and managing the tenant relationship from move-in to move-out. It's not a legal term. It's industry shorthand for the whole job, more than holding the title. People sometimes ask 'what is landlording' expecting a legal definition, but there isn't one. What does exist legally is the definition of 'landlord,' which varies slightly by state but generally means the owner or the owner's authorized agent who leases real property to another person in exchange for rent. Some states, like California, define this through the broader landlord-tenant chapter of the Civil Code rather than a single named definition [1]. Practically, landlording for a 1-10 unit owner means: setting and collecting a legal deposit and rent amount, keeping the unit habitable under your state's warranty of habitability standard, responding to repair requests within the timeframe your state requires, following notice rules before entry or nonrenewal, and, if your city requires it, keeping your rental license or registration current and passing periodic inspections.
What is a landlord, legally speaking?
A landlord is the person or entity that owns rental property and leases it to a tenant in exchange for rent, taking on legal responsibilities for habitability, repairs, and following state and local landlord-tenant law. In most states this includes both individual owners and property management companies acting on an owner's behalf. The legal weight of the term comes from the duties attached to it, not the word itself. A landlord in California, for example, has a statutory duty to maintain rental property in a habitable condition, covering things like working plumbing, weatherproofing, and functioning heating, per Civil Code Section 1941.1 [5]. Nearly every state has some version of this implied warranty of habitability, even if the specific standards differ. Being the landlord also means you're the one on the hook for state deposit rules, notice requirements, and, in mandatory-licensing cities, the registration or permit obligations tied to the property address, not to you personally. If you sell the building, the new owner typically has to re-register or transfer the license, depending on city rules. Confirm transfer requirements with your city rental licensing office before closing on any rental purchase in a licensed jurisdiction.
Who is responsible for the rental property walk-through inspection in California?
In California, the landlord is responsible for offering an initial move-out inspection and, separately, both landlord and tenant typically participate in documenting unit condition at move-in and move-out. This isn't the same as a city rental inspection, which is a separate, mandatory-licensing process in cities that require it. Under California Civil Code Section 1950.5(f), a landlord must, upon request, give the tenant an opportunity for an initial inspection before the tenant moves out, so the tenant can fix issues that might otherwise be deducted from the deposit [1]. The landlord has to give at least 48 hours' written notice before that inspection and has to provide an itemized statement of anything they intend to deduct [1]. This move-out walk-through is the landlord's job to schedule; the tenant's job is mostly to show up and address flagged items if they want to save deposit money. Separately, some California cities (and many cities nationally) run their own mandatory rental inspection programs tied to licensing, unrelated to the tenant move-out process. Those inspections check code compliance, habitability, smoke detectors, and similar safety items, and they're the landlord's responsibility to schedule and pass, not the tenant's. Confirm whether your city runs this kind of program and what its inspection cycle looks like with your city rental licensing office.
What can a landlord look at during an inspection?
During a routine or move-out inspection, a landlord (or a city inspector, in licensed cities) can look at general habitability and safety conditions: working smoke and carbon monoxide detectors, functioning plumbing and heating, structural safety, pest issues, and cleanliness relative to normal wear and tear. What they generally can't do is search personal belongings or use the inspection as a pretext to go through your things. For a landlord's own routine inspections (not a city code inspection), most states require advance written notice, commonly 24 to 48 hours, and restrict the inspection to reasonable purposes: checking for damage, verifying smoke detector function, confirming no unauthorized occupants or pets, and assessing repair needs. California law, for instance, requires "reasonable notice" that's presumed to be 24 hours absent a showing otherwise, under Civil Code Section 1954 [6]. City rental inspectors, when a city runs a mandatory licensing inspection program, are typically checking a code compliance checklist: smoke and CO detector placement and function, egress window sizes in bedrooms, electrical panel condition, water heater strapping and temperature/pressure relief valve routing, handrails and guardrails, and general structural and sanitation issues. These inspectors are generally not there to evaluate the tenant's housekeeping or belongings, just the unit's condition against code. Here's the boundary that trips people up: a landlord walk-through and a city code inspection look similar on the surface but serve different legal purposes. One protects the landlord's deposit claim; the other protects the city's interest in safe housing stock. Don't confuse a passed city inspection with a clean move-out inspection, they don't guarantee each other.
How much notice does a landlord have to give before entering or ending a tenancy?
Notice requirements split into two very different categories: notice to enter the unit, and notice to end a tenancy. Both vary by state, and mixing them up is a common and costly mistake. For entry, most states require 24 to 48 hours' advance notice for non-emergency entry, such as repairs or a routine inspection. California presumes 24 hours is reasonable notice under Civil Code Section 1954 [6]. Some states specify 48 hours instead; always check your specific state statute rather than assuming the number is the same everywhere. For ending a month-to-month tenancy, notice periods commonly range from 30 to 60 days depending on the state and, sometimes, how long the tenant has lived there. California requires 60 days' notice to terminate a tenancy of one year or more, and 30 days for shorter tenancies, per Civil Code Section 1946.1 [7]. Some cities layered on top of state law also require 'just cause' for termination in addition to notice, so check both levels. Emergency entry (fire, flooding, a burst pipe) is generally exempt from advance notice requirements in every state that has addressed the question, because the whole point is that waiting would cause more harm.
What rights do tenants have without a lease?
A tenant without a written lease still has real legal rights. Most states treat an unwritten rental arrangement as a month-to-month tenancy, and the tenant keeps the same habitability protections, notice requirements, and deposit rules as someone with a signed lease. Without a written lease, the terms default to what state law provides: typically a month-to-month tenancy terminable with the notice period your state requires (commonly 30 days, sometimes more), the right to a habitable unit under your state's implied warranty of habitability, and the right to the same deposit protections (limits, itemized deduction statements, return deadlines) that written-lease tenants get. A verbal agreement to pay rent in exchange for occupancy is still legally enforceable in most states; it's just harder to prove specific terms if there's a dispute. What a no-lease tenant does NOT automatically get is protection from the landlord's ability to change terms (like raising rent) with proper notice, since there's no fixed term locking in the original rate. And local rent control ordinances, where they exist, generally apply regardless of whether there's a written lease, because they attach to the unit and the tenancy, not to the paperwork.
Why do landlords require renters insurance?
Landlords require renters insurance mainly to shift liability. If a tenant's negligence causes a fire, a burst pipe, or a break-in, renters insurance covers the tenant's own belongings and, critically, the liability portion covers damage the tenant might otherwise be personally on the hook for, which reduces the landlord's exposure to lawsuits and unrecoverable losses. A landlord's own property insurance covers the building structure, but it typically doesn't cover a tenant's personal belongings and often has gaps around tenant-caused liability. Requiring renters insurance, commonly with a minimum liability coverage amount (often $100,000, sometimes $300,000, set by lease terms rather than statute), pushes that risk onto a policy the tenant is paying for. There's no federal or, in most states, statutory requirement that landlords mandate renters insurance. It's a lease-term choice, and it's become standard practice over the last decade as more landlords (and property managers) have gotten burned by uninsured tenant losses. Some states do regulate how this requirement can be structured; check your state's landlord-tenant statute or your city rental licensing office if you're adding this clause to a lease for the first time, since some jurisdictions require the requirement itself to be spelled out clearly and applied consistently to avoid fair housing issues.
What can a landlord not do in Ohio?
In Ohio, a landlord cannot shut off utilities, change locks, or remove a tenant's belongings to force them out, a practice generally banned as illegal 'self-help eviction.' Ohio law requires landlords to use the court eviction process (forcible entry and detainer action) rather than locking a tenant out directly. Ohio's landlord-tenant law, codified at Ohio Revised Code Chapter 5321, sets out specific landlord obligations and prohibitions. A landlord must maintain the premises in a fit and habitable condition, keep common areas safe, and maintain all electrical, plumbing, heating, and other systems in good working order, per ORC Section 5321.04 [8]. A landlord also cannot retaliate against a tenant for exercising legal rights (like reporting a code violation), a protection specifically addressed in ORC Section 5321.02 [9]. Ohio also restricts a landlord's ability to enter without notice: ORC Section 5321.04 requires 'reasonable notice' before entry, generally interpreted as 24 hours in practice, for anything other than an emergency [8]. And a landlord cannot require a deposit-related waiver of statutory rights; deposit handling in Ohio is governed by ORC Section 5321.16, which requires an itemized list of deductions if the landlord withholds any part of a deposit over $50 or one month's rent, whichever is greater .
How security deposits interact with city rental licensing rules
Here's the part that trips up small landlords in licensed cities: your deposit amount and handling are governed by state law, but your ability to legally collect rent or a deposit at all in the first place may depend on whether the unit is currently licensed or registered with the city. Renting an unlicensed unit doesn't usually void the deposit rules, but it can expose you to fines, and in some cities, unpaid registration fees or violations can become liens against the property. This is the layered-compliance problem 1-10 unit landlords run into constantly. You might have a perfectly legal, state-compliant deposit clause in your lease, but if your city requires a rental license and you haven't renewed it, you're still exposed to code enforcement action separate from anything happening in the lease itself. Some cities require the license or registration number to be printed on the lease or in a tenant notice; missing that step can itself be a violation, even if your deposit terms are fine. Before you set deposit terms or sign a new lease in any city with mandatory rental licensing, confirm the license or registration status of the specific unit, the required inspection cycle, and any local disclosure requirements with your city rental licensing office. State law and city ordinance are two separate compliance tracks, and passing one doesn't mean you've passed the other.
How to be a landlord without getting blindsided by fees and inspections
The realistic way to avoid surprise fines is to build a calendar around three recurring obligations: license/registration renewal dates, inspection cycles, and deposit-related deadlines (like the timeframe your state gives you to return a deposit after move-out, commonly 14 to 30 days depending on the state). Most landlord fines in licensed cities come from missed renewal deadlines or failure to schedule a required inspection, not from deposit disputes. If you're managing a handful of units across even one city, tracking renewal dates manually in a notebook or a phone reminder works until it doesn't; a missed renewal is usually the first violation notice a new landlord gets. If you want a structured way to keep city-specific license renewal dates, inspection prep checklists, and deposit compliance notes organized in one file per property, that's exactly the gap the City Rental License & Inspection Prep Packet is built to close, a one-time $79 tool rather than a subscription. It won't file paperwork for you or guarantee an inspection outcome, but it gives you a repeatable system instead of starting from scratch every renewal cycle. Beyond the packet or any tool, the core habits that keep a small landlord out of trouble are simple: confirm your city's specific rules every time they might have changed (ordinances get updated more often than people expect), keep every deposit deduction itemized and documented, and never assume a rule from one city or state applies in another. If you're researching tenant rights or tenants rights more broadly as you build your lease, cross-check them against your specific state statute number, more than general guidance.
Frequently asked questions
What is the maximum security deposit a landlord can require?
It depends entirely on your state. California and New York cap deposits at one month's rent for most unfurnished units [1][2]. Other states, like Texas, set no statutory cap at all [3]. Some states allow higher deposits for furnished units or tenants with pets. Always check your specific state's landlord-tenant statute before setting a deposit amount.
How to become a landlord if my city requires rental licensing?
Register the property with your city's housing or code enforcement department, pay the registration/license fee, schedule and pass any required habitability inspection, and get your license number before signing or renewing leases. Then set deposit and lease terms that comply with your state's landlord-tenant law. Confirm exact fees and inspection cycles with your city rental licensing office, since they vary widely and change often.
Who is responsible for the rental property walk-through inspection in California?
The landlord is responsible for offering a move-out walk-through inspection if the tenant requests one, giving at least 48 hours' written notice, under Civil Code Section 1950.5(f) [1]. Separately, if your city runs a mandatory rental licensing inspection program, the landlord (not the tenant) is responsible for scheduling and passing that inspection.
What is landlording?
Landlording is the everyday work of owning and managing a rental property: collecting rent, maintaining habitability, handling repairs, following state and local law, and managing the tenant relationship from move-in through move-out. It's an informal industry term, not a legal definition, covering the full scope of what running a rental actually involves.
What is a landlord?
A landlord is the person or entity that owns rental property and leases it to a tenant for rent, taking on legal duties for habitability, repairs, and compliance with state and local landlord-tenant law. This includes individual owners and property management companies acting on an owner's behalf.
What rights do tenants have without a lease?
A tenant without a written lease is usually treated as a month-to-month tenant under state law, keeping the same habitability rights, entry notice requirements, and deposit protections as a tenant with a written lease. What they lack is a fixed term locking in rent or other terms, since those default to state law and can change with proper notice.
Why do landlords require renters insurance?
Landlords require renters insurance mainly to shift liability for tenant-caused damage (fire, water leaks, break-ins) and to protect against lawsuits over losses that the landlord's own property insurance wouldn't cover, since landlord policies typically exclude a tenant's personal belongings and tenant-caused liability.
How much notice does a landlord have to give before entering the unit?
Most states require 24 to 48 hours' advance written notice for non-emergency entry. California presumes 24 hours is reasonable under Civil Code Section 1954 [6]. Ohio similarly requires 'reasonable notice,' generally treated as 24 hours in practice, under ORC Section 5321.04 [8]. Emergency entry doesn't require advance notice in any state that addresses it.
What can a landlord look at during an inspection?
A landlord or city inspector can generally check habitability and safety items: smoke/CO detectors, plumbing, heating, structural condition, pest issues, and cleanliness relative to normal wear. They generally cannot search personal belongings or use an inspection as a pretext for something unrelated to unit condition and code compliance.
What can a landlord not do in Ohio?
An Ohio landlord cannot shut off utilities, change locks, or remove belongings to force a tenant out (illegal self-help eviction); must use the court eviction process instead. They also cannot retaliate against a tenant for exercising legal rights under ORC Section 5321.02 [9], and must give reasonable notice before entry under ORC Section 5321.04 [8].
How long does a landlord have to return a security deposit?
It varies by state, generally 14 to 30 days after move-out. California requires an itemized statement and any refund within 21 days under Civil Code Section 1950.5 [1]. Ohio requires an itemized deduction list if withholding more than $50 or one month's rent under ORC Section 5321.16 [10]. Confirm your specific state's deadline before drafting lease language.
Does a landlord have to require renters insurance by law?
No. Requiring renters insurance is a lease-term choice, not a state or federal legal mandate in most jurisdictions. Some states regulate how such a clause must be worded or applied consistently, but no general statute forces landlords to require it; it's become common practice rather than a legal obligation.
Can a landlord require a deposit before showing proof of rental license?
State deposit law and city licensing rules are separate compliance tracks. A landlord can typically still collect a deposit under state law even if city registration is pending, but renting an unlicensed unit where a city requires licensing can expose the landlord to code enforcement fines separate from the lease terms. Confirm current license status with your city rental licensing office before signing.
Sources
- California Legislative Information, Civil Code Section 1950.5: California caps security deposits and requires itemized deduction statements and move-out inspection notice
- New York State Senate, Real Property Law Section 7-108: New York caps security deposits at one month's rent statewide
- Texas Statutes, Property Code Section 92.101: Texas sets no statutory cap on security deposit amounts
- California Legislative Information, Civil Code Section 1941.1: California landlords have a statutory duty to maintain habitable rental conditions
- California Legislative Information, Civil Code Section 1954: California presumes 24 hours is reasonable notice before landlord entry
- California Legislative Information, Civil Code Section 1946.1: California requires 30 or 60 days notice to terminate certain tenancies depending on length of tenancy
- Ohio Laws, Ohio Revised Code Section 5321.04: Ohio landlords must maintain habitable premises and give reasonable notice before entry
- Ohio Laws, Ohio Revised Code Section 5321.02: Ohio law prohibits landlord retaliation against tenants exercising legal rights
- Ohio Laws, Ohio Revised Code Section 5321.16: Ohio requires itemized deduction statements for security deposit withholdings over $50 or one month's rent