AB 2493 took effect January 1, 2025 and changed when a California residential landlord can collect an application screening fee. The current Civil Code section 1950.6, amended again effective January 1, 2026, is the operating source. A leasing team needs to choose an authorized process before collecting fees and track each application against that process.
Before charging, confirm a unit is available now or within a reasonable time. Section 1950.6(c)(1) bars the fee when the landlord knows or should know neither condition is met. The fee cannot exceed actual out-of-pocket information-gathering costs plus the reasonable value of processing time, subject to the statute’s indexed ceiling. Start with the statutory $30 base, verify any annual CPI adjustment used for the charge, and retain that dated calculation with the cost record. Read current Civil Code section 1950.6 before setting a price.
Give written criteria with the application. Consider completed applications in order received, approve the first applicant meeting those criteria, and charge only when an application is actually considered. If concurrent submissions cause an inadvertent fee for an unconsidered application, refund within seven days. The applicant may instead choose to apply that payment to another unit offered by the same landlord. A considered applicant denied under the stated criteria is not automatically owed the whole fee under this process.
Alternatively, offer a process that returns the entire screening fee to every applicant not selected, regardless of reason. The deadline is within seven days after selecting an applicant or 30 days after submission, whichever occurs first. Document the selected process before intake and train the team to use the same clock for every file.
For example, under Process B, an application submitted June 1 and a selection made June 20 produce two possible refund dates: June 27, seven days after selection, and July 1, 30 days after submission. The earlier date, June 27, controls the full refund to that nonselected applicant. If the landlord received that applicant’s paid-for credit report June 5, the report-copy deadline would be June 12. The report clock runs separately from the refund clock. These dates illustrate the rules; they do not describe a Coastline application.
Provide an itemized receipt showing out-of-pocket expenses and time spent. Deliver it personally or by mail; emailing the receipt requires the applicant’s agreement. If a reference check or credit report is not performed, return the amount not used for authorized purposes. When an applicant has paid a fee and the landlord receives that applicant’s credit report, provide a copy by personal delivery, mail or email within seven days of receiving it. Record receipt, refund and report delivery separately.
Review the actual applicant queue and fee ledger with the leasing team. Confirm the offered process, whose application was considered, the selection date, and whether each receipt, refund and report copy was delivered on time. Applicants can use the California rental application-fee guide to understand the same process from their side of the transaction.