California Tenant Screening Laws
Review California tenant screening laws, including credit checks, background checks, and screening fee limits.
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Most landlords agree, even a single bad tenant can cause months of stress, from missed rent to costly property damage. That’s why California landlords need to be thorough and legally compliant when screening tenants.
If you’re looking to run a tenant background check in California, understanding tenant screening laws in California (2024) is essential. From what fees you can charge to what screening criteria are allowed, the rules are strict—and getting them wrong can open you up to lawsuits or fines.
This guide breaks down the California tenant screening process, the latest legal updates, and how to screen tenants the right way using Landlord Studio.
California Tenant Screening Overview
The California tenant screening process consists of several steps: pre-screening, application process, background checks, selecting a screening service, evaluation, and notification.
When screening tenants in California, landlords must follow both federal and state regulations, including:
- California Fair Housing Act
- Fair Employment and Housing Act
- Unruh Civil Rights Act
- Fair Credit Reporting Act
Additionally, under California Civil Code Section 1950.6, as of December 2023, the maximum a landlord or property management company can charge for a rental application fee is $64.50 per applicant. This fee is adjusted annually based on changes in the Consumer Price Index (CPI) to reflect economic conditions.
Tenant applicants also have the right to use reusable credit reports, but it's up to the landlord whether to accept them or not.
Additional laws to consider when screening tenants in California include:
- California law stipulates that landlords must provide their screening criteria to tenant applicants during the application process.
- Landlords must get written consent for background/credit checks in California.
Tenant Screening Laws California
Below are some key California tenant screening laws landlords need to know and follow when evaluating potential renters.
Fair Housing and Anti-Discrimination Laws
California has some of the strictest tenant screening laws in the U.S.:
- California Fair Housing Act and Fair Employment and Housing Act (FEHA): Prohibit discrimination based on race, gender, family status, disability, source of income, and more.
- Unruh Act: Applies to all businesses (including landlords), banning discrimination based on characteristics like age and sexual orientation.
- FCRA: Requires written consent before running a credit or background check and mandates landlords send an adverse action notice if they deny a tenant based on the report
According to the California Fair Housing Act, landlords are prohibited from discriminating against applicants based on race, color, national origin, religion, sex, familial status, disability, and source of income.
Tenant Screening and Application Fees in California
Under California Civil Code §1950.6:
- You can charge up to $64.50 per applicant (as of 2025).
- You must provide an itemized receipt.
- You must refund unused fees.
- You cannot charge if no units are currently available.
- If the fee is used to purchase a tenant screening report, you must provide the applicant a copy upon request.
Recent Update About Reusable Credit Reports
Another important update landlords should take note of is the legality of reusable credit reports for tenant screening in California, which was made effective as of January 2023.
The California rental market is tight, with renter applicants having to submit multiple applications before securing a rental space, and with the significant cost of screening fees. This law allows tenant applicants to purchase reusable credit reports and submit them to multiple landlords within 30 days.
It's important to note that landlords are not required to accept a reusable credit report as a background check for rental applications in California. However, landlords that do accept one would not be able to charge an application screening fee for accessing the report from a third-party provider (Cal. Civ. Code § 1950.1 (2023)).
Screening Criteria Disclosures
Per tenant screening laws in California, landlords must provide written screening criteria to tenant applicants during the application process. Examples of popular screening criteria in California include criteria based on:
- Smoking
- Pets
- Income levels (eg. minimum of 3x the rent)
- Criminal background (eg. no convictions for violent crime)
- Eviction record
An ideal screening criteria aims to help property owners to quickly identify qualified applicants. These criteria must be applied consistently and must not discriminate against any protected class.
It's recommended that landlords review their screening policies with the help of a lawyer before implementation.
Consent for Background/Credit Checks in California
Federal Regulations
At the federal level, matters concerning tenant background checks in California are regulated by the Fair Credit Reporting Act. This act outlines specific obligations for landlords when handling consumer reports, including background checks.
Additionally, the FCRA requires landlords to secure written permission from current or potential tenants before requesting a consumer report, including background checks, from a consumer reporting agency. They are also mandated to offer certain disclosures and adhere to particular protocols during the tenant screening process.
Local Regulations
Several state laws govern background checks in California for rental. According to California Civil Code §1950.6, landlords cannot charge a screening fee if no rental unit is available unless it will be vacant within a reasonable time frame. This provision aims to protect tenants from unwarranted fees during the application process.
Additionally, the Fair Employment and Housing Act and the Unruh Act prohibit discrimination based on protected characteristics such as race, color, national origin, religion, marital status, disability, gender identity, and more.
While having a criminal history is not a protected characteristic, landlords need to note that misuse of this information can lead to discriminatory practices.
California Tenant Screening Process
Below is a summary of the steps involved in a typical California tenant screening.
Step 1: Pre-screen Leads
It's good practice to begin the screening process by asking pre-qualification questions to assess if applicants meet basic criteria like income, rental history, and timeline for moving in.
Pro Tip: You can automatically pre-screen leads when you use Landlord Studio's rental listing and syndication feature.
Step 2: Collect Applications
Next, collect essential information, including contact details, addresses, employment history, proof of income, and consent for background checks.
Pro Tip: Use an online rental application form to streamline the process and ensure you collect all the information you require in one go. you can use Landlord Studio.
Step 3: Run a California Tenant Screening Report
With your tenant screening service, you want to be able to check the applicants:
- Credit score & history
- Criminal history
- Eviction history
- Rental references
Pro Tip: Use a legally compliant screening service like Landlord Studio for fast, reliable tenant reports.
Selecting Your California Tenant Screening Service
When selecting an online tenant screening service, we recommend you prioritize the accuracy and detail of the information provided, as well as cost, data security, and report delivery.
Landlord Studio offers California-compliant tenant screening reports that can be generated in as little as 30 minutes. Reports are free for landlords and cost the tenant as little as $45.
Create your free Landlord Studio account to run your free tenant screening report today.
Step 5: Evaluation and Decision-Making
After accessing the reports, evaluate the applications based on consistent criteria to ensure compliance with tenant screening laws in California.
Step 6: Send Notification of Decision to Tenant
It's important for landlords to notify applicants of decisions promptly and provide clear reasons for any denials to maintain transparency.
California Tenant Screening Resources
Download Free Landlord Forms and Templates
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More California Legal Guides
- A Guide To California Lease Agreements [+Free Template]
- A Guide To California Rental Application Laws
- California Security Deposit Laws
- California State Landlord Tenant Laws
- Rent Control Laws In California
- The Complete Guide To California Eviction Laws
Conclusion: California Tenant Screening Laws
We can't stress enough how important it is to follow these California tenant screening laws.
To begin with, you should know that these laws exist to enhance transparency in the rental process, building trust between landlords and tenants. Penalties for unlawful background checks in California for rental range from a couple of fines to actual jail time.
Using a good tenant screening service like Landlord Studio can save you a lot of time and stress trying to keep up with constantly changing laws. Landlord Studio offers affordable tenant screening services that prioritize legal compliance, detailed reporting, and speed of delivery.
Create a free Landlord Studio account today to simplify your California tenant screening.