Tenant Application Screening and Fees

Tenant Application Screening and Fees (Civil Code §1950.6) - California State Law

Key Changes for the Year 2025:

Under Civil Code §1950.6, landlords must now give prospective tenants their qualifying rental criteria in writing before charging application fees or running credit checks. Additionally, if the landlord screens multiple applicants at once, only the first chosen applicant’s screening fee can be kept; fees paid by others who are not selected must be refunded. To simplify compliance, landlords should process applications one at a time, maintain detailed documentation, and be transparent about income, credit, and rental history requirements to prevent disputes.

• Written Screening Criteria Required:
  Before charging an application fee or running a credit check, landlords must provide prospective tenants with written qualification standards. For example, you must clearly state that you only accept tenants who earn at least three times the monthly rent or who have a minimum credit score threshold.
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• Fee Refund for Subsequent Applicants:
  Previously, landlords could charge each applicant a screening fee if multiple applications were processed simultaneously. Now, if you process more than one application at once, you must refund the screening fee to any applicant who was not considered first. In practical terms, once your first applicant meets the criteria and you decide to accept them, you cannot keep the screening fee from others you screened concurrently who were then rejected.
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Practical Tips:

• Run Credit Checks One at a Time:
  To avoid refunds and administrative hassle, consider processing applicants sequentially.
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• Document Everything:
  Keep written records of your screening criteria and share them with each applicant.
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• Transparency:
  Providing clarity about income, credit score, and rental history requirements upfront reduces misunderstandings and potential disputes.

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Disclaimer: The following information is provided for general guidance only and may not reflect the most recent legal changes. Laws can vary by jurisdiction, and regulations may be updated. For specific legal advice, consult with a qualified attorney familiar with Los Angeles rental laws.