CA AB3260

Requires landlords to authorize tenants to satisfy security deposit requirements using alternatives to paying the full amount upfront before taking possession of premises.

Permits tenants to obtain and maintain rental security insurance coverage or a surety bond from an insurance provider approved by the Department of Insurance, with coverage equal to the full security deposit amount.

Allows tenants to pay the security deposit in monthly installments over at least six months (or shorter periods by written agreement for leases under nine months), with installments due on the same day as rent payments.

Prohibits landlords from requiring additional security, surety, or insurance beyond the full amount of the security deposit.

Makes it a lease violation if a tenant fails to renew their security deposit insurance or fails to pay the remainder of their installment payments.