With updated laws and rising costs of living, the California rental application fee remains a hot topic in 2025. State regulations set clear boundaries, but many renters and landlords still misunderstand their rights and obligations. Our guide will break down all the facts so you can approach the rental process with confidence!
What Is a California Rental Application Fee?
A California rental application fee is a legally regulated charge that landlords may collect from prospective tenants as part of the California residential rental application process. This fee is intended to cover the actual costs of evaluating an applicant’s suitability for a rental unit. It typically includes expenses such as:
- Credit checks
- Criminal background checks
- Eviction history reports
- Employment and income verification
- Time spent processing paperwork or contacting references
Importantly, this fee is not a deposit and does not guarantee approval or reservation of the rental unit. Paying the application fee only grants the landlord permission to begin screening the applicant.
Under California law, this fee is designed to promote fairness and transparency. Landlords are not allowed to profit from application fees. Instead, they may only recover actual out-of-pocket expenses related to tenant screening and a reasonable administrative cost for their time.
California Rental Application Fee Requirements in 2025
In 2025, the rules governing the California rental application fee remain grounded in California Civil Code § 1950.6, with updates applied under AB 2493. Landlords must:
- Charge no more than the allowable maximum (adjusted annually).
- Provide an itemized receipt if requested.
- Refund any unused portion of the fee if the screening was not completed.
These rules protect applicants from excessive or unfair charges while still allowing landlords to recover screening costs.
Maximum Allowable Application Fee in California Under AB 2493 (Effective 2025)
As of January 1, 2025, AB 2493 adjusts the maximum California rental application fee based on annual changes to the Consumer Price Index (CPI). You can see the breakdown of the maximum allowable application fee by year below.
The maximum fee applies per applicant and must not exceed the landlord’s actual out-of-pocket screening costs. Landlords are required to refund any unused portion of the fee and must not profit from the application process.
Security Deposit Limits and Regulations
In California, security deposits are strictly regulated under state law, and these regulations are distinct and separate from those governing California rental application fees.
For most unfurnished residential rental properties, California law caps the security deposit at two months’ rent. For furnished rental units, the maximum allowable security deposit is higher, up to three months’ rent. This increase accounts for the added wear and tear that furniture and appliances might incur during tenancy.
The security deposit can cover a range of potential costs:
- Unpaid rent or lease-breaking fees
- Repair of damages beyond normal wear and tear
- Cleaning fees are necessary to restore the unit to its original condition
- Replacing lost keys or garage door openers
However, landlords cannot use the security deposit to cover routine maintenance or repairs that are the landlord’s responsibility.
California law prohibits landlords from labeling security deposits as “nonrefundable.” Unlike some states or rental markets, landlords must treat the security deposit as a refundable sum, subject to lawful deductions after the tenant moves out.
Required Disclosures on Application Forms
Landlords in California must include certain mandatory disclosures on their rental application forms. Required disclosures include:
- A notice that the application fee is non-refundable (if applicable).
- A statement describing what the fee will be used for (e.g., credit check, background screening).
- Whether a copy of the credit report will be provided upon request.
- The contact information for any screening service used.
Credit and Background Check Requirements
To process a rental application, California landlords typically run credit checks and background checks to assess the applicant’s reliability. These checks are allowed under state law, but landlords must follow the Fair Credit Reporting Act (FCRA) and California-specific privacy laws.
Key requirements include:
- Obtaining written authorization from the applicant.
- Using a reputable screening company.
- Informing the applicant of their rights, including access to a copy of the report upon request.
Legal Requirements for Charging Application Fees
In California, landlords must follow strict legal requirements to rent a house in California and charge a California rental application fee. These rules are designed to protect renters from being overcharged.
Key legal requirements are:
- Charging no more than the annually adjusted maximum fee.
- Using the fee solely for actual screening costs (e.g., background and credit checks).
- Providing a receipt upon request, itemizing what the fee was used for.
- Refunding any portion of the fee not used for screening.
Charging more than allowed or profiting from the application process is a violation of California Civil Code § 1950.6.
Can Landlords Charge Different Fees to Different Applicants?
No. Charging different fees to different applicants could be viewed as unfair treatment and may potentially violate both state and federal fair housing laws, which prohibit discrimination based on race, gender, religion, national origin, disability, familial status, and other protected classes.
Therefore, landlords in California must charge the same application fee to all applicants for a given rental unit.
The underlying principle is to maintain an equitable process where all prospective tenants are subject to the same financial requirements for renting an apartment in California. If a landlord were to charge one applicant more than another without a valid and legal reason, it could lead to allegations of discrimination or bias
The only exception is if the landlord incurs a different actual cost for screening (for example, one applicant requires additional verification due to foreign credit reports). However, even in those cases, the total charged must not exceed the legal maximum, and the difference must be documented.
Refund Obligations for Unselected Applicants
If a landlord collects a residential rental application California fee but does not perform a background or credit check, they are legally obligated to refund the unused portion of the fee.
Refunds must be made on time, and landlords should keep clear records showing:
- Which parts of the screening were completed?
- Any costs incurred.
- The amount refunded (if any).
Providing Credit Reports to Applicants
Applicants in California have the right to request a copy of their credit report used during the rental screening process. Landlords are required to comply with this request under both the Fair Credit Reporting Act (FCRA) and California law.
To stay compliant, landlords should:
- Inform applicants of their right to receive a copy.
- Provide the name and contact information of the credit reporting agency used.
- Offer the report if the applicant requests it in writing.
How Landlords Can Set Up a California Rental Application via LeaseRunner
For landlords looking to streamline the rental process in 2025, using a platform like LeaseRunner can make handling the California rental application fee, forms, and screenings much easier!
Step 1: Create a LeaseRunner Account and Add Your Property
Start by signing up for a landlord account on LeaseRunner. Once registered, you can input your California property details (address, unit type, and rent amount) into your dashboard. This information connects future applications to the correct rental listing.
Step 2: Send the Application to Prospective Tenants
After adding the property, you can send a free digital residential rental application in California directly to potential tenants, along with tenant screening reports (credit, background, eviction, income verification). Enter the prospective tenant’s email, and LeaseRunner sends them a secure link to complete everything online.
Step 3: Applicants Complete the Online Form
Once prospective tenants receive the secure link, they can begin the rental application online. The application form itself is free; no California rental application fee is charged by LeaseRunner.
However, if the landlord includes tenant screening reports (such as credit, background, or eviction checks), the landlord can choose whether the tenant or landlord pays for those reports. These fees go directly toward the actual cost of the screenings. LeaseRunner’s Premium Screening is within the California rental application fee cap.
Important: No charges are processed without the applicant’s prior digital authorization.
Applicants will fill in their personal information, rental and employment history, and provide references. The online format allows them to complete the application conveniently on their own time.
Step 4: Review Applications and Screening Results in Real Time
Once submitted, LeaseRunner alerts you immediately. You can log into your dashboard to review the full application, credit report, background check, and supporting details, all in one place. This allows you to make informed, compliant decisions without delay.
Submitting a Rental Application in California as a Tenant
A California rental application fee is usually required, and landlords often rely on digital screening tools. Whether applying online or in person, you should be prepared and responsive.
Applying Online vs. In-Person
Most California landlords now prefer online applications through platforms like LeaseRunner. Online applications allow for faster processing, secure data submission, and easy fee payment.
Online applications offer:
- Convenience and 24/7 access
- Integrated payment and screening tools
- Automatic alerts and status updates
In-person applications may still be available for smaller, independent landlords. If applying in person:
- Bring printed documents (ID, proof of income, references)
- Have the exact application fee ready (check the legal maximum for the year)
- Request a receipt for payment and a copy of your application, if possible
Following Up After Submitting an Application
After you’ve submitted your application, it’s a good idea to follow up within 48–72 hours if you haven’t heard back. Keep your tone polite and professional. A brief message by email or phone asking for a status update shows interest and keeps you on the landlord’s radar.
Make sure you:
- Confirm that your application and fee were received
- Ask if any additional documents are needed
What Happens After Approval?
After approval, the landlord will usually send a formal rental agreement and request the security deposit (subject to California limits). At this stage:
- Review the lease terms carefully before signing
- Confirm the move-in date, utilities, and any additional payments
- Keep a copy of the signed lease for your records
Landlords are required to provide specific disclosures and notices, so expect to receive information about habitability, mold, lead paint (if applicable), and utility billing.
California Rental Application Denial and Adverse Action
Being denied for a rental can be disappointing, but California law always ensures tenants have rights during this process.
Adverse Action Notices under FCRA
If a landlord denies your rental application based on information from a consumer report (credit, eviction, or background check), they are legally required to send an adverse action notice under the Fair Credit Reporting Act (FCRA).
You can find these details in the notice:
- The reason for denial or a statement that the decision was based on a consumer report
- The name and contact info of the screening company
- A statement that the applicant has the right to dispute the report
- A copy of the report (if requested)
State-Specific Timeframes to Respond or Challenge
In California, tenants should respond within 60 days if they wish to dispute inaccurate information found in a consumer report. It's best to act quickly!
In addition, under California law, landlords are also expected to act promptly when a correction is made and reconsider the applicant if timing allows.
Tenant Recourse Options
If you believe you were denied unfairly or that our application was mishandled, California offers several options:
- Request a written explanation from the landlord (not legally required, but often provided)
- File a complaint with the Department of Fair Employment and Housing (DFEH) for discrimination concerns
- Dispute inaccuracies directly with the screening agency
- Consult legal aid or tenant advocacy groups in your city or county
Best Practices for Landlords in California
To run a smooth rental business in California, especially with evolving laws around the California rental application fee, landlords must take note:
- Always charge within the legal fee limit, updated annually: California law strictly caps the rental application fee, and the maximum amount adjusts annually based on the Consumer Price Index (CPI).
- Use standardized applications with clear disclosures: A standardized rental application form needs to have all necessary fields for personal, rental, and employment information, required legal disclosures about how fees will be used, and clear consent sections for background and credit checks.
- Screen all applicants equally to avoid fair housing violations: Discrimination is illegal under both federal and California fair housing laws.
- Provide receipts for application fees and keep screening records: Applicants have the right to request an itemized receipt showing how their application fee was spent.
- Respond promptly to applications and notify tenants of decisions: Promptly reviewing applications and informing applicants of acceptance or denial helps to build trust and a good landlord reputation.
- Stay current with local rent control ordinances and fair housing updates: California’s rental laws vary widely by city and county.
- Use digital platforms to streamline and document the entire process: Technology can simplify managing applications and fees. Consider using trusted digital tools like LeaseRunner, RentSpree, or similar platforms.
Final Takeaways
California rental application fee guidelines in 2025 remind landlords of the importance of compliance, consistency, and clear communication. As fee caps adjust each year, both landlords and tenants should stay updated with the law updates and the new guides by LeaseRunner!
FAQs
Q1. Do you get your application fee back if you're denied?
In most cases, California rental application fees are non-refundable, even if you're not selected. However, if the landlord does not run a background or credit check, they are legally required to refund any unused portion of the fee. Applicants have the right to ask for a receipt showing how the fee was used.
Q2. Why are apartment application fees so expensive?
California rental application fees cover the real costs of screening a tenant. While the fee may seem high, state law sets a maximum cap that adjusts annually (e.g., $59.67 in 2025 under AB 2493). Landlords cannot charge more than the legal maximum, even if their actual costs are higher.
Q3. Are application fees legal in California?
Yes, application fees are legal in California, but they’re strictly regulated. Landlords can only charge up to the state-mandated maximum, must use the fee solely for screening purposes, and must provide a receipt upon request. Overcharging or misusing the fee can result in legal penalties.
Q4. Can a landlord charge different application fees to different people?
No. In California, landlords must charge all applicants the same application fee for a given rental unit. Charging different fees can violate fair housing laws and is considered discriminatory, unless the difference reflects a documented, actual cost (and still remains under the legal cap).
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