Tenant screening in California works best in a fixed order: written criteria, a lawful ad, a choice between the two screening-fee options before any fee is taken, the application, the checks, and a decision with the right paperwork. The fee rules are in Civil Code § 1950.6, which since January 1, 2025 (AB 2493) allows a fee only if the landlord offers either first-come, first-qualified screening or a full refund to every applicant not selected. The fair housing rules in Government Code § 12955 apply at every step.

The short version

  • Settle your written criteria and your fee option before the listing goes live.
  • The fee covers actual screening costs, capped at $30 per applicant, adjustable for CPI since January 1, 1998 (§ 1950.6(b)), with an itemized receipt (§ 1950.6(d)).
  • Send each applicant a copy of their credit report within 7 days of receiving it, without waiting to be asked (§ 1950.6(f)).
  • Refund unused fees, and calendar the refund deadlines for the option you chose.
  • If a consumer report contributed to a denial or a less favorable offer, send the required notices.

Before you list

Step 1: Write the criteria. Decide the income, credit, rental history and other standards and put them in one document. How to do that within fair housing law is covered in writing rental criteria.

Step 2: Check the listing. An ad may not state a preference or limitation based on a protected characteristic (Gov. Code § 12955(c)), and that includes wording about accepted forms of payment that signals a source-of-income preference (2 CCR § 12141(a)(9)). From January 1, 2027, a rental ad that uses a digitally altered or AI-generated image needs a disclosure and the unaltered original or a link to it (AB 2025, Civil Code § 1940.11).

Step 3: Choose your fee option. Under § 1950.6(c)(2), a fee may be charged only if, when it is collected, you offer one of these:

Option A: first-come, first-qualifiedOption B: refund everyone not selected
Order of reviewComplete applications in the order receivedAny order
Written criteriaGiven with the applicationNot stated in this option
Who is approvedThe first applicant who meets the criteriaNot specified in this option
When fees are chargedOnly once an application is actually consideredNot specified in this option
RefundsWithin 7 days to applicants whose applications were not considered (or applied to another unit at their option); none to an applicant considered and deniedFull refund to every applicant not selected, within 7 days of selecting a tenant or 30 days after the application, whichever is first

The full rule, including the cap and who counts as an applicant, is on the application and screening fees law page.

Taking applications

Step 4: Hand out the packet. Give every applicant the same application, the written criteria (required under Option A), and a statement of which fee option you use. From April 1, 2027, the packet must also include your written pet policy and a space on the application to acknowledge receipt (SB 1296, Civil Code § 1942.7.5).

Step 5: Collect the fee correctly.

  • Charge only actual out-of-pocket costs plus the reasonable value of time, never more than the $30 cap as adjusted (§ 1950.6(b)). No state agency publishes an adjusted 2026 figure, so keep your own calculation.
  • Guarantors and cosigners are applicants too (§ 1950.6(j)).
  • Do not take a fee when you know or should know no unit is or will soon be available (§ 1950.6(c)(1)).
  • Give an itemized receipt of out-of-pocket expenses and time spent, personally or by mail, or by email if the applicant agrees (§ 1950.6(d)).

Step 6: Decide about applicant-supplied reports. You may, but need not, accept and rely on a credit report the applicant brings (§ 1950.6(a)). A reusable tenant screening report is also optional to accept; if you accept one, you may not charge a screening fee or an access fee, and the report must have been prepared within the previous 30 days (Civil Code § 1950.1).

Running the checks

Step 7: Order reports and give the right notices.

  • Credit report copy. If the applicant paid a screening fee, send them a copy of the consumer credit report by personal delivery, mail or email within 7 days of receiving it (§ 1950.6(f)). No request is needed.
  • Investigative reports. If you order an investigative consumer report (one covering character, general reputation, personal characteristics or mode of living), you must notify the applicant in writing no later than three days after first requesting it, with the agency's name and address and a summary of Civil Code § 1786.22 (§ 1786.16(a)(3)). The applicant also gets a box to check to request a copy, which is due within three business days of your receiving the report (§ 1786.16(b)(1)). Whether a vendor's report is a credit report or an investigative report depends on its contents, so both sets of rules may apply.
  • Income and subsidies. For an applicant with a government rent subsidy, measure income against the tenant's share of the rent, and if you use credit history, offer the option of alternative evidence and reasonably consider it (Gov. Code § 12955(o)). See income requirements and housing vouchers.
  • Criminal history. Use only what 2 CCR §§ 12264 to 12271 allow. See criminal history in tenant screening.

Step 8: Refund what you did not use. If you did not run a credit report or a reference check, return the unused part of the fee (§ 1950.6(e)).

Deciding and closing out

Step 9: Decide against the written criteria. Score each file line by line and write down why it met or did not meet each standard. Under Option A, approve the first applicant who meets the criteria. The same standards apply to every applicant, whatever their protected characteristics (Gov. Code § 12955(a)); see fair housing and source of income.

Step 10: Send adverse action notices where required. If information in a consumer report contributed to a denial, federal and California law require notices with set contents. The FTC's landlord guidance treats requiring a co-signer, a larger deposit or higher rent than for another applicant as adverse action too. The steps are in adverse action notices.

Step 11: Issue refunds on time. Under Option A, refund fees collected from applicants who were never considered within 7 days. Under Option B, refund every applicant not selected within 7 days of selecting a tenant or 30 days after the application, whichever comes first.

Step 12: Close the file. Keep the criteria version, the scoring notes and copies of what you sent. The FTC's Disposal Rule applies to anyone who keeps consumer report information for a business purpose, and requires reasonable measures to protect it from unauthorized access when it is disposed of (16 CFR § 682.3(a)). No retention period for screening files was confirmed, so ask counsel how long to keep them.

If the approved applicant wants to reserve the unit before signing, read holding deposits first.

For owners

Write the fee option, the criteria and the refund dates into one checklist and use it for every vacancy. The paperwork steps (a receipt, a report copy, a refund) are the easiest to miss, so build the 7-day and 30-day dates into your calendar on the day each application arrives.

For renters

Before you pay, ask which fee option the landlord uses and for the written criteria. You should receive an itemized receipt and, if a credit report is pulled, a copy within 7 days. If you were never considered under Option A, or not selected under Option B, a refund is due on the timeline above. The Coronado guide to applying for a rental covers what to have ready.

Local rules

Some cities add rules on top of state law, such as local just-cause, relocation or rental registration requirements; check your city's code. Coronado has no local rent-control or just-cause ordinance as of October 2026 (based on a review of its code's contents).

Frequently asked questions

Do I have to screen applicants in the order they apply?

Only if you use Option A, first-come, first-qualified. That option requires considering complete applications in the order received and approving the first applicant who meets the written criteria. Option B has no ordering rule, but every applicant not selected, for any reason, gets a full refund.

Does an applicant have to ask for a copy of the credit report?

No. When a screening fee was paid, § 1950.6(f) requires the landlord to provide a copy of the consumer credit report within 7 days of receiving it, by personal delivery, mail or email, without a request.

Can I charge a screening fee if the unit is already promised to someone?

No. Section 1950.6(c)(1) bars charging a screening fee when the landlord knows or should know that no unit is available or will soon be available.

How long should I keep screening files?

No California statute setting a retention period for screening files was found, and the FTC's Disposal Rule sets none itself (16 CFR § 682.4(a)), so ask counsel. When you do dispose of consumer report information, the rule requires reasonable measures to protect it from unauthorized access (16 CFR § 682.3(a)).

This is general information, not legal advice. Laws change; confirm the current text and your situation with a California attorney.

McKee Properties manages rentals from its Coronado office; contact us with questions about your property.

Sources

Verified October 19, 2026.

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