Rental applications in California: screening fees, credit checks and discrimination

Application screening fees

Under Civil Code § 1950.6, a screening fee may cover only the landlord's actual out-of-pocket cost of gathering information, such as a credit report, plus the reasonable value of time spent, and may not exceed the statutory maximum, which is adjusted annually. The landlord must give you an itemized receipt showing the costs. If the landlord does not actually check your references or obtain a report, the unused part of the fee must be returned.

A landlord may not charge a screening fee when no unit is available or will not be available within a reasonable time, unless you agree in writing. Laws that took effect in 2025 added further rules about how applications and fees must be handled. If a landlord accepts reusable tenant screening reports under Civil Code § 1950.1, the landlord may not charge you a screening fee when you provide one.

Credit reports and denials

If the landlord obtains a consumer credit report, you may ask for a copy, and the landlord must provide it. If you are rejected or offered worse terms because of information in a consumer report, federal law generally requires the landlord to tell you, name the reporting agency and explain your right to get a free copy and dispute errors. Check your reports before you apply so you can correct mistakes or explain them.

• Ask for an itemized receipt for any screening fee.
• Ask for a copy of the credit report the landlord used.
• Keep copies of your application, listing and all messages.

Discrimination is prohibited

California's Fair Employment and Housing Act prohibits housing discrimination based on race, color, religion, sex, gender, gender identity or expression, sexual orientation, marital status, national origin, ancestry, familial status, source of income, disability, veteran or military status, genetic information and other protected characteristics. Source of income includes housing vouchers, so a landlord generally may not refuse an applicant because the rent will be paid in part with a Section 8 voucher. State rules also restrict how landlords may use criminal history.

If you believe you were rejected for a discriminatory reason, write down what was said and when, save the listing and messages, and contact the California Civil Rights Department, which accepts housing complaints, or an attorney. There are deadlines for filing complaints.

Deposits and lease terms

For most leases signed since July 1, 2024, a security deposit may not exceed one month's rent, with an exception allowing some small landlords to charge up to two months. Read the lease before you sign it, ask for a copy of everything you sign, and do a move-in inspection with photos. These first steps protect you when it is time to move out and get your deposit back.