Forgotten Security Deposits: A Commonly Overlooked Asset You Can Recover
Security deposits are a routine part of renting an apartment, leasing office space, or setting up utilities. Yet, countless Californians are unaware that these deposits can be classified as unclaimed property if left unrecovered for a certain period. Whether due to a hasty move, miscommunication, or relocation across state lines, millions of dollars in forgotten security deposits sit idle in the California State Controller’s Office, waiting to be claimed.
In this comprehensive guide, we will explore:
- What forgotten security deposits are
- Why they become unclaimed property
- How to check if you’re owed money
- How to file a claim
- Common mistakes to avoid
- Real-life examples
- How “Claim My CA Property” can help
What Are Forgotten Security Deposits?
A security deposit is a refundable sum of money that tenants or customers pay to landlords or service providers (e.g., utility companies) as a form of financial protection. The purpose is to cover damages or unpaid bills after the service ends or a lease terminates.
Types of Security Deposits That May Become Unclaimed Property:
- Residential apartment or house rental deposits
- Commercial lease deposits
- Utility company deposits (electric, water, gas)
- Mobile phone service or cable TV service deposits
In California, businesses and landlords are legally required to return security deposits within a certain time period, usually 21 days for residential rentals. However, if they are unable to return the funds (due to lost contact, outdated forwarding addresses, or insufficient information), the money must be turned over to the State Controller’s Office after a dormancy period (usually 3 years).
Why Do Security Deposits Become Unclaimed?
Security deposits go unclaimed for several reasons:
- Outdated Contact Information: Many renters forget to leave forwarding addresses or change their mailing information with landlords or service providers.
- Miscommunication: A tenant may assume the deposit was forfeited due to minor damages or unpaid rent, even if some or all of it was refundable.
- Unawareness: Some people simply forget they ever paid a deposit.
- Company Closure or Mergers: Businesses that collected deposits may go out of business or be absorbed by another company, leading to misplaced or untraceable funds.
- International Moves: Individuals who move overseas often forget to claim their deposits or assume they are lost.
How to Check If You Are Owed Money
California makes it easy for residents to check if they are owed a forgotten security deposit.
Step-by-Step:
- Visit the California State Controller’s Office Unclaimed Property Website: https://www.claimit.ca.gov/
- Enter your full name (and any previous names) and city or ZIP code.
- Review the search results. If a match is found, you’ll see the reported owner name, the business that reported the funds, and the amount category (e.g., under $100, over $100).
- Click on the claim and follow the prompts to begin the verification process.
Note: You can also search for security deposits under a business name if the deposit was linked to a company lease or commercial account.
How to File a Claim
Once you identify a deposit that belongs to you, you must file a claim with supporting documentation.
What You Will Need:
- Proof of identity (e.g., driver’s license, passport)
- Proof of address at the time the deposit was made
- Social Security number or Tax ID number (if required)
- Documentation linking you to the reporting party (e.g., lease agreement, utility bill, payment receipt)
Filing Options:
- Online through the official State Controller’s website
- Mail-in claim form if you need to submit hard copies
Processing Time: Claims may take up to 180 days to process, depending on the volume and complexity.
Common Mistakes to Avoid
Avoiding these errors can improve your chances of successfully recovering your forgotten security deposit:
- Not double-checking name variations: Try searching your name with and without middle initials, maiden names, or former business names.
- Submitting incomplete documentation: Make sure all required documents are clear, valid, and current.
- Ignoring small claims: Even deposits under $100 can add up over time—especially if you’ve lived in multiple locations.
- Overlooking old addresses: Search with old mailing addresses, especially those used during college, internships, or temporary leases.
- Not checking regularly: New deposits are reported each year. Set a reminder to check the site annually.
Real-Life Examples
Case #1: Julia in Sacramento
Julia rented a studio apartment in college and paid a $500 deposit. She moved to San Diego and never received a refund. Five years later, she found her name on the Controller’s site and recovered the full amount.
Case #2: The Nguyen Family
The Nguyens ran a family-owned restaurant and paid a $2,000 utility deposit. When the business closed during COVID-19, they assumed the deposit was gone. Two years later, they filed a successful claim.
Case #3: Travis, a Freelancer
Travis used a co-working space in Los Angeles, which required a $350 security deposit. After moving to Oregon, he never followed up. A friend told him about unclaimed property, and he filed online to recover the money.
How Claim My CA Property Can Help
Tracking down forgotten deposits and submitting claims can be time-consuming, especially if your documentation is incomplete or if multiple entities are involved. That’s where Claim My CA Property comes in.
We offer:
- Personalized searches using multiple name and address combinations
- Document preparation and assistance gathering proof
- Step-by-step filing help
- Status updates and follow-through until your claim is resolved
Our team knows how to work through complex cases and maximize your chances of success.
Final Thoughts
Forgotten security deposits are a surprisingly common source of unclaimed funds in California. From renters to business owners, thousands of people leave money behind when moving, closing accounts, or relocating. With just a few steps, you can identify if you’re owed money and take action to recover it.
Don’t let your money sit idle in a government account. Visit ClaimMyCAProperty.com or the California State Controller’s website to start your search today.
25 Helpful Backlinks
- https://www.claimit.ca.gov/
- https://sco.ca.gov/upd_msg.html
- https://sco.ca.gov/upd_faq.html
- https://www.consumerfinance.gov/
- https://www.hud.gov/
- https://www.dca.ca.gov/
- https://www.boe.ca.gov/
- https://www.courts.ca.gov/
- https://www.usa.gov/unclaimed-money
- https://www.nolo.com/legal-encyclopedia/security-deposits-landlords-duties-29736.html
- https://www.lawhelpca.org/
- https://www.ftc.gov/
- https://www.naag.org/consumer-resources/unclaimed-property/
- https://www.ncsl.org/financial-services/unclaimed-property-laws
- https://oag.ca.gov/consumers
- https://www.cacities.org/
- https://www.bbb.org/
- https://www.tenantstogether.org/
- https://www.zillow.com/rental-manager/resources/security-deposit-return/
- https://www.avvo.com/
- https://www.irs.gov/taxtopics/tc518
- https://www.money.com/unclaimed-money-california/
- https://www.latimes.com/business/story/2023-05-15/california-unclaimed-property-2023
- https://www.kiplinger.com/personal-finance/unclaimed-money
- https://www.cbsnews.com/news/unclaimed-money-security-deposit-how-to-claim/