California’s AB 2493 introduces new requirements for landlords charging application screening fees. This law outlines specific procedures to ensure fair and transparent tenant screening processes.

Landlords must provide written screening criteria, such as a minimum credit score or income requirements, to all applicants before accepting applications. When processing applications, landlords may adopt a first-come, first-processed approach, approving the first applicant meeting all criteria. If an applicant is denied for failing to meet these standards, landlords may retain the screening fee to cover processing costs. However, if multiple applications are processed and one is selected, fees for remaining applicants must be refunded unless they are offered the opportunity to apply for another available unit.

Alternatively, landlords who select an applicant based on subjective preference, without adhering to a first-come, first-processed system, must refund screening fees for all non-selected applicants, regardless of their qualifications. This approach carries significant risks under fair housing laws, which prohibit discrimination based on protected characteristics.

To comply with AB 2493, landlords should maintain detailed records of application processing, including the order of receipt and reasons for denials. If an applicant is not selected but meets criteria, landlords must offer to transfer the application to another available property or refund the fee. 

Don't worry about this new law if you're a Mesa client because we'll take care of this for you. Please remember, we are not attorneys and cannot provide legal advice. For guidance on AB 2493 and fair housing compliance, consult a qualified professional. Watch the video below for a detailed explanation and practical tips on processing multiple applications.