Tenant screening is a crucial step in the rental process, ensuring that landlords select responsible and reliable tenants. However, with the evolving legal landscape in California, landlords must stay informed about the latest regulations to remain compliant and avoid potential legal pitfalls.
In 2025, several significant changes have been introduced to California’s tenant screening laws, impacting how landlords process applications, charge fees, and handle tenant information. This guide provides a comprehensive overview of these updates to help landlords navigate the new requirements effectively.
Key Updates to California Tenant Screening Laws in 2025
1. First-Come, First-Served Application Processing (AB 2493)
Effective January 1, 2025, landlords must process rental applications in the order they are received. This “first-come, first-served” approach mandates that the first applicant who meets the landlord’s written and disclosed screening criteria must be offered the rental unit. Landlords are required to provide these screening criteria to all applicants at the time of application submission.
2. Refundable Application Screening Fees
Under AB 2493, landlords can only charge application screening fees under specific conditions:
- If a rental unit is available or will be available within a reasonable period.
- If the landlord processes applications in the order received and provides written screening criteria.
- If the landlord agrees to refund the screening fee to applicants who are not selected.
Refunds must be issued within seven days of selecting a tenant or within 30 days of receiving the application, whichever comes first.
3. Mandatory Disclosure of Credit Reports
When an applicant pays a screening fee, landlords are obligated to provide a copy of the consumer credit report used in the screening process, regardless of whether the applicant requests it. This ensures transparency and allows applicants to understand the basis of the landlord’s decision.
4. Acceptance of Portable Tenant Screening Reports (AB 2559)
AB 2559 requires landlords to accept valid portable tenant screening reports that are less than 30 days old and complete. Landlords cannot charge additional fees for using these reports unless they provide a written explanation for refusal. This measure aims to reduce the financial burden on tenants applying for multiple rental units.
5. Security Deposit Documentation Requirements (AB 2801)
Starting July 1, 2025, landlords must take photographs of the rental unit immediately before or at the start of the tenancy. Upon tenant move-out, landlords are also required to photograph the unit before and after any repairs or cleaning for which deductions from the security deposit may be made. These photographs must be provided to the departing tenant, ensuring transparency in the handling of security deposits.
Conclusion
Staying compliant with California’s tenant screening laws is essential for landlords to maintain fair and legal rental practices. The 2025 updates emphasize transparency, fairness, and tenant rights, requiring landlords to adapt their screening processes accordingly. This includes reviewing procedures related to criminal background screening to ensure they align with the latest regulations and do not result in discriminatory practices.By understanding and implementing these changes, such as processing applications in order, refunding screening fees, accepting portable reports, and documenting property conditions, landlords can foster trust with prospective tenants and avoid potential legal issues. Affordable housing training can also help landlords stay informed about best practices and evolving legal standards. It’s advisable for landlords to consult legal professionals or property management experts to ensure full compliance with these new regulations.
