How carefully are tenants being screened?
In California, this question must be approached in two distinct ways. First, there is the careful screening that is required to ensure only a qualified resident is placed in a rental home. It’s important to take a careful look at income, credit, rental history, and any record of prior evictions or issues.
But careful screening also requires an adherence to the state’s strict rules and regulations. Fair housing laws in the state of California are stricter than federal laws. And, new requirements were recently enacted regarding application fees and the order in which landlords must screen applications and accept tenants.
At Bell Properties, we have an excellent record of placing qualified tenants who pay rent on time, take care of properties, and respect lease agreements. We’re also dedicated to legal compliance and best practices. So we’ve put together this guide for landlords in Northern California who want to remain on the right side of screening rules and regulations.
Quick Overview:
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Compliant Screening Starts with Consent
In California, obtaining an applicant’s clear and informed consent before conducting any background or financial screening is a legal necessity. Landlords cannot lawfully run credit reports, criminal background checks, or eviction history searches without the applicant’s permission. Failing to secure this consent can expose property owners to legal disputes, fines, and claims of privacy violations.
To stay compliant, every rental application should include a well-defined Consent to Screening section. This section should plainly explain what types of checks may be performed, such as credit history, criminal records, rental history, and eviction filings. Transparency is key in order to follow the law: applicants should understand exactly what information will be reviewed and why it is relevant to the rental decision.
In addition, California law requires landlords to disclose any screening fees and ensure applicants acknowledge them in advance. Including a signature and date line confirms that the applicant has read, understood, and agreed to the screening process. This documentation protects both parties, promotes fairness, and helps establish a professional, legally compliant rental process.
Next: Establish Qualifying Rental Criteria
At Bell Properties, we invest in a careful and strict screening process, and we also understand our legal obligations and the importance of being fair to all applicants. Our preference, of course, is to spend time screening applications that are likely to be approved. Otherwise, we’re wasting our time and the tenants who apply are wasting their application fees. Let’s not waste time screening applications that are unlikely to be qualified, right?
This is one of the reasons that it’s so important to establish a set of qualifying rental criteria. This criteria will allow tenants to determine whether or not they are likely to be approved for the properties we are renting out. They know what we’re looking for, and they know what we’ll be using to decide whether their application qualifies.
There’s also a fair housing protection that’s built right into place with qualifying rental criteria. This documented set of standards keeps everything fair and objective, protecting us and our owners from potential fair housing violations.
We document and share our list of rental criteria before anyone applies. Even our listings include some of our requirements, and that’s to attract only those who are qualified. We have found that when we state in our marketing materials whether pets are allowed, what type of income and credit standards we have, when tenants will be able to move in, and the length of the lease term we are looking for, our pool of applicants shrinks a bit, but it saves us from allowing an unqualified tenant to move in.
Attracting only qualified tenants saves time and makes the leasing process more efficient.
We clearly communicate our screening standards so applicants understand exactly how they will be evaluated. Having well-defined criteria helps lower the risk of evictions and minimizes the time and resources spent dealing with problematic tenancies.
Establishing qualification guidelines does not conflict with fair housing regulations; rather, it outlines our baseline expectations for income verification, creditworthiness, and background history in a consistent and lawful manner.
Laws: Screening in Order of Receipt
Assembly Bill 2493 (AB 2493), became effective on January 1, 2025, and it requires landlords to process applications on a "first-come, first-served" basis. This law is meant to ensure fair processing of applications. Instead of sifting through a pile of applications for the one that a landlord personally feels good about, the first application received must be screened first, and if all criteria are met, that’s the tenant who is placed.
The law also requires that landlords only charge fees for available units, which means an applicant cannot apply for a property that is not ready for occupancy. This law is intended to prevent the abuse of fees.
With a new "first-come, first-served" screening rule in place, it is essential that landlords understand how this law works and how to adjust any existing screening procedures that do not apply.
There was a time when landlords in California had a bit more discretion when it came to screening tenants. It was permissible to run reports in any order. Landlords could screen multiple applicants at the same time.
Not anymore. In an effort to provide the rental process with less bias and more equity, this is the law in California. When a screening fee is collected, that application must be processed immediately. All applicants will have an equal opportunity to be considered and to prevent landlords from cherry-picking applicants based on subjective or discriminatory factors.
The good news with this law is that prospective tenants will not waste time submitting an application when they come across a property they really like.
Best Practices for Landlords Under the New Screening Laws
If this new law seems challenging to any existing practices, contact us at Bell Properties and we’ll help with legally compliant screening and tenant placement. To stay compliant and protect ourselves legally, we have spent some time over the last year implementing the following best practices in our screening process, which reflects existing rules and regulations.
Posting Clear Application Instructions
It’s important to let prospective tenants know exactly what they need to submit for an application to be considered “complete.” If pay stubs need to be submitted as income verification, for example, we want to let applicants know that before they begin the application. It’s a good idea to post this information online or provide a printed checklist with any rental listing.
Time-Stamp Applications for California Rentals
There might come a time when a landlord needs to prove when an application was received and how soon afterwards the screening process began. Document the exact date and time an application is received. Document the receipt of the screening fee, too. This helps to prove the applicants are being processed in the correct order.
Keep Criteria Consistent
We talked about the importance of consistent standards and qualifying rental criteria. Develop a documented set of screening standards that clearly defines income thresholds, acceptable credit ranges, rental history expectations, and eviction considerations, and enforce these standards consistently for every applicant. Doing so helps ensure legal compliance and provides valuable protection if any screening practices are ever questioned under fair housing laws.
Make Lease Offers Right Away
Applicants need to know right away when their application has been approved (or denied). Transparency builds trust and reduces confusion. Remember that the Fair Credit Reporting Act has specific language that must be used when a denial is made based on credit. We can help with that language; contact us at Bell Properties.
Document Everything
Maintain a log of received applications, processing order, screening decisions, and any communication with applicants. This documentation can be invaluable if the process is ever questioned.
Failure to follow the new screening order law could open rental property owners up to legal liability, including potential fair housing complaints or civil claims for unfair business practices. Screening fees need to be well-documented and supported too, otherwise a violation of consumer protection laws could be alleged. These are legal pitfalls best avoided.
Make Tenant Screening in California Comprehensive and Compliant
Establishing a tenant screening process that is both thorough and legally compliant is essential for protecting California rental properties. A comprehensive approach helps landlords evaluate income stability, credit behavior, and rental history while identifying potential risks before a lease is signed. Just as important, compliance with state and federal housing laws ensures that every applicant is treated fairly and consistently, reducing exposure to discrimination claims or legal disputes.
Clear written criteria, proper disclosures, and documented consent create transparency and trust throughout the process. When screening is handled carefully and lawfully, landlords can make confident decisions that support long-term tenancy success and reduce costly turnover.
Let’s review your screening process and see if there is room for improvement. Contact us at Bell Properties.
