California has many rules and statutes regulating its housing market. These must be fully considered when preparing an application for rental properties in the state.Â
Failure to comply with these requirements could result in legal action from the applicant against you. Therefore, it is essential that your California rental application meets the correct legal standards. Â
Application Fee
Under California law (Cal. Civ. Code § 1950.6), you can charge a prospective tenant up to $52.46 (as of February 2020) for the rental application. However, the price allowed may be adjusted yearly based on the Consumer Price Index (CPI). You must also provide an itemized receipt for the costs incurred.
Security Deposit
Landlords cannot charge more than 2 months’ rent if they are leasing an unfurnished apartment under California law (Cal. Civ. Code § 1950.5(c)). However, landlords with furnished properties can charge up to 3 months’ rent.
Housing Discrimination Law
Under the Fair Housing Act (FHA) you may not discriminate against potential tenants for a number of reasons. In California, you may not reject an application for any of the following purposes:
- Race or ethnicity
- Sexuality
- Disability
- Family status
- Criminal record
- National origin
- Religion
- Gender
Consent Credit Check
If you want to carry out any credit or background checks you must first request the potential tenant’s permission on the application form. The applicant must sign and grant their express consent on the form or you will not be able to proceed with these forms of screening.