Placing the right tenant is the single most important decision you make as a landlord. A thorough, legally compliant screening process protects your property, reduces turnover, and keeps you out of costly disputes. But California's screening rules are strict, and they've gotten stricter.
Two recent laws, AB 2493 (2025) and ongoing Fair Housing enforcement, have changed how landlords must process and respond to rental applications in Los Angeles. This guide covers what's required, what's prohibited, and how to build a screening process that holds up.
This is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance specific to your situation.
California’s AB 2493 fundamentally changed how landlords must process applications. You must review applications in the sequence they were received and approve the first qualified applicant before moving on to others. Screening fees must be refunded within seven days if another applicant is selected, and within 30 days if no decision is made. The practical implication: standardize your written criteria before accepting applications, and document the order in which applications arrive.
California law caps the screening fee at approximately $64.50 per applicant in 2025, adjusted annually with the Consumer Price Index. The fee can only cover the actual cost of the background and credit check. If you don't run a report, or charge more than you spent, you're required to refund the difference. Applicants can also request a copy of any report you obtained on them.
The federal Fair Credit Reporting Act (FCRA) applies whenever you use a third-party background or credit screening service. It requires written authorization from the applicant before running any report, and an adverse action notice if you deny an applicant (or approve them with different terms) based on information in a consumer report. The notice must identify the screening company used and inform the applicant of their right to dispute inaccurate information. Skipping this step is one of the most common and costly landlord compliance mistakes in California.
A consistent, written screening policy should evaluate applicants on income and employment (most landlords require gross monthly income of 2.5–3x the monthly rent), credit history (look for patterns like chronic late payments, collections, or prior evictions), rental history (contact previous landlords and ask specific questions), and criminal history with the restrictions described below.
California and Los Angeles fair housing law prohibits screening decisions based on race, color, national origin, religion, sex, disability, or familial status. Source of income is also protected—including Section 8 Housing Choice Vouchers. You also cannot screen based on arrest records that did not result in conviction, sealed or expunged records, most juvenile records, or immigration or citizenship status.
You can consider criminal convictions, but not arrests without convictions. Blanket "no felony" policies are risky without an individualized assessment. Consider the nature, recency, and relevance of the offense and any evidence of rehabilitation. Consult an attorney before including criminal history criteria in your screening standards.
The best protection against fair housing complaints isn't luck. It's consistency. Here's how to build a process that's both effective and compliant:
Step 1: Write your screening criteria before you advertise. Document exactly what income threshold, credit standards, and rental history you require. Post these criteria on your listing.
Step 2: Use a standardized application. Use a current California-compliant rental application form that includes written authorization to run a background and credit check.
Step 3: Timestamp and log every application. Under AB 2493, the order applications arrive matters. Keep a written or digital log.
Step 4: Evaluate each application against your written criteria. Approve the first qualified applicant. If you pass on an applicant, document why, specifically, and in terms of your stated criteria.
Step 5: Send adverse action notices promptly. If you deny an applicant based on a background or credit report, the FCRA adverse action notice must go out. Don’t skip it.
Step 6: Refund fees as required. AB 2493’s seven-day and 30-day refund windows are real deadlines. Set a calendar reminder when applications come in.
Los Angeles has robust fair housing enforcement. The LA City Human Relations Commission, California's Civil Rights Department, and private plaintiff attorneys all actively pursue violations. The financial exposure from a single fair housing complaint, even a meritless one, can easily exceed the cost of a bad tenant placement.
In a market where evictions in the City of LA can take six to twelve months under the best circumstances, a bad placement decision compounds quickly. The landlords who come out ahead in LA are the ones who treat screening as a system, not a gut-check.
Under California Civil Code § 1950.6, the screening fee cap adjusts annually with the Consumer Price Index. For 2025, landlords may charge up to approximately $64.50 per applicant. The fee must reflect the actual cost of the credit or background check. Any unused portion must be refunded, and applicants can request a copy of the report obtained.
Yes. Both California state law (Government Code § 12955) and the City of Los Angeles prohibit landlords from refusing to rent to applicants based on source of income, which includes Section 8 Housing Choice Vouchers. Advertising “No Section 8” or screening out voucher holders is a fair housing violation and can result in significant penalties.
Effective January 1, 2025, AB 2493 requires landlords to process rental applications in the order received and to approve the first qualified applicant before reviewing others. Screening fees must be refunded within seven days if another applicant is selected, and within 30 days if no decision is made. This law applies to most residential rental properties in California.
Landlords may consider criminal convictions in California, but cannot consider arrests that did not result in conviction, expunged records, or most juvenile records. Blanket policies excluding all applicants with any felony conviction are risky and may violate fair housing law. An individualized assessment—considering the nature, recency, and relevance of the conviction—is strongly recommended.
An adverse action notice is a written notice required by the federal Fair Credit Reporting Act (FCRA) whenever you deny a rental application—or approve it on materially different terms—based on information from a consumer credit or background report. The notice must identify the reporting company and inform the applicant of their right to dispute inaccuracies. Failure to provide it is a common and costly compliance error.
The information provided here is for general informational purposes only and does not constitute, and should not be relied upon as, legal advice. For guidance specific to your situation, we strongly recommend consulting a licensed attorney with expertise in California landlord-tenant law and real estate.
