CAL LEG Application Screening Fee


On Sep. 29, CAL LEG enacted bill re tenant application screening fee.


  • CAL LEG approved Bill AB 2493 to amend Section 1950.6 of the California Civil Code, CAL LEG 3-4-5-2-1950.6, regarding tenancy and the application screening fee.
  • Authorizes landlord/agent to charge an application screening fee only if landlord/agent, at time the application screening fee is collected, offers application screening process.
  • Application Screening Fee
  • Prohibits collection of application screening fee if landlord knows or should have known that no rental unit was available at that time or within a reasonable period of time.
  • Landlord/agent may charge an application screening fee if, at the time of application, he/she offers an application screening process and considers a completed application.
  • Also may offer an application screening process in which landlord/agent returns the entire fee for an applicant who isn't selected for tenancy, regardless of the reason.
  • Removes the requirement for an applicant to have to request credit report, a copy will be sent to applicant within 7 days of the landlord or their agent receiving the report.
  • Provisions do not prevent landlord from accepting a reusable tenant screening report.
  • Legislative History
  • On Feb. 13, 2024, bill introduced in Assembly; on May 20, 2024, bill passed Assembly.
  • On May 21, 2024, bill delivered to Senate; on Aug. 20, 2024, bill passed in Senate.
  • On Aug. 26, 2024, Senate amendments concurred; on Sep. 3, 2024, sent to governor.
  • On Sep. 29, 2024, bill was approved by governor, and was assigned Chapter 966.
  • Effectiveness
  • No effective date specified; bills generally effective Jan. of next year, i.e., Jan. 1, 2025.

Regulators CAL LEG
Entity Types Corp; MG Orig
Reference Ch. 966, Bill AB2493, 9/29/2024; Citation: CAL LEG 3-4-5-2-1950.6;
Functions Compliance; Financial; Legal; Operations; Record Retention
Countries United States of America
Category
State
Products Corporate; Mortgage
Regions Am
Rule Type Final
Rule Date 9/29/2024
Effective Date 1/1/2025
Rule Id 228237
Linked to N/A
Reg. Last Update 9/29/2024
Report Section US Consumer

Last substantive update on 10/03/2024