Does the law penalize a landlord who fails to return the itemized statement along with the balance of the tenant’s security deposit (if applicable) within twenty-one calendar days?

Yes. The bad faith retention by a landlord of the security interest or any portion thereof can subject the landlord to statutory damages of up to twice the amount of the security deposit, in addition to actual damages (including the portion of any security deposit retained in bad faith).See Cal. Civ. Code § 1950.5(l).

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