Santa Cruz Municipal Code Chapter 21.02 requires landlords of residential rental property to pay interest on a tenant's security deposit. This requirement generally applies to any rental agreement, written or oral, for a dwelling used by a tenant for thirty days or more.

Landlords must pay interest to the tenant, no later than January 1, for the previous calendar year in the form of a direct payment or credit against the tenant's rent. The landlord may choose between the two methods of payment.

The Security Deposit Interest Rates are established from time to time by a City Council resolution based on the recommendations of the Santa Cruz County Treasurer-Tax Collector.

Please note the City does not provide housing to individuals/households or legal assistance in landlord/tenant disputes.

If you have any questions or need assistance, please contact the Housing Team at housing@santacruzca.gov.