City of Pasadena Workshop to Cover Security Deposit Rules and Requirements

PASADENA, Calif - The Pasadena Rent Stabilization Department (RSD) invites tenants, property owners and community members to its final Monthly Workshop of the calendar year for an overview of security deposit rules and requirements under Pasadena's Charter Article XVIII.

The workshop will take place on Tuesday, October 13, 2026, at 6 p.m. at the Rent Stabilization Department, 199 S. Los Robles Ave., First Floor Conference Room. Participants may attend in person or virtually via Zoom at Bit.ly/MonthlyRSDWorkshops. Whether participating in person or virtually, attendees will have the option to choose Spanish interpretation.

Security deposits come with important requirements for how they are handled throughout a tenancy. In Pasadena, landlords of rent-stabilized units are also required to pay tenants annual interest on security deposits they hold for at least one year. This workshop will walk participants through these requirements and explain how they apply in common situations.

Each October, the Pasadena Rental Housing Board (PRHB) establishes the annual security deposit interest rate based on the average savings account rates offered by financial institutions in Pasadena. The rate adopted determines the amount of interest that must be paid to tenants the following January.

For the period of January 1 through December 31, 2026, the security deposit interest rate is 0.12%. Interest owed for this period must be provided to tenants by January 31, 2027.

For example, a $1,000 security deposit at the 0.12% interest rate would earn $1.20 in interest. This is calculated by multiplying $1,000 by 0.0012. Property owners may provide the interest by check, as a rent credit, or by electronic payment when both parties have agreed in writing to receive payment electronically.

Looking ahead, the PRHB is expected to adopt the security deposit interest rate for the period of January 1 through December 31, 2027, at its upcoming meeting on Thursday, October 15. The newly adopted rate will determine the amount of interest that must be paid to tenants in January 2028.

At the October workshop, RSD staff will provide an overview of the current security deposit requirements and explain how these rules apply to rent-stabilized units. Topics will include:

• Annual Security Deposit Interest: Learn how the annual interest requirement works and how the amount owed to tenants is determined.
• Payment of Security Deposit Interest: Review when and how interest must be paid and what documentation may be required.
• Relocation Assistance and Security Deposits: Understand how security deposits are addressed when relocation assistance requirements apply.
• Increasing a Security Deposit: Learn when and under what circumstances a property owner may increase the amount of a tenant's security deposit.

Whether you rent or own rental property in Pasadena, the workshop is an opportunity to better understand the rules surrounding security deposits and ask questions directly of RSD staff.

For more information, contact the Rent Stabilization Department at [email protected] or (626) 744-7999.