Finding tenants in the Golden State begins with your California rental application. Let’s dive into a complete guide on rental applications in this corner of the West Coast. We’ll cover best practices, rental application laws, and how iPropertyManagement’s rental application template can streamline the process, save time, and keep you organized.
Information to Collect
California rental applications collect the following:
- Names of applicants, co-applicants, and co-signers
- Social Security numbers
- Dates of birth
- Emails and phone numbers
- Emergency contacts
- Employment, rental, and income history
- Current, previous, and past addresses
- Pets
- Vehicles
- References
- Smoking status
This information is sensitive, so federal and state laws regulate the types of information landlords can gather, the kinds of questions they can ask, and how they use that information to approve or reject applicants.
We’ll review California rental application laws as we cover best practices for screening renters.
Quick Guide to Screening a Tenant
While circumstances vary and each application is unique, these six steps cover the basics of responsible tenant screening:
1. Pre-Screener
Many landlords use pre-screeners to collect sample information about renters who find your listing. Pre-screeners enable you to identify qualified renters at a glance, even before they complete your online rental application form.
Pre-screeners ask for:
- Contact information
- Desired move-in date
- Employment and income
- Self-declared credit score
- Household size
- Pets
- Smoking
- Vehicles
Pre-screeners make sorting through leads quick and easy, but they don’t replace your official California rental application.
2. Conduct Showings
Show the rental to potential tenants so they can see the home or apartment in person.
3. Distribute and Collect Applications
After renters submit pre-screeners meeting your criteria, pass along your California rental application form for them to fill out.
California Application Laws
Application laws and landlord-tenant rights vary between states. The California Fair Housing and Employment Act regulates what landlords can ask and what information can be used to deny an applicant. Here’s what you need to know:
California law lists these traits as legally protected characteristics:
- Race
- Color
- Religion
- Sex
- Gender, gender identity, gender expression, and sexual orientation
- Marital status
- National origin
- Ancestry
- Familial status
- Source of income
- Disability
- Veteran/military status
- Genetic information
You cannot discriminate against applicants based on the above qualities, it’s illegal (Cal. Gov. Code § 12955).
Criminal history: Criminal history has a look-back period of 7 years. Arrests that didn’t result in conviction and sealed records are omitted (Cal. Civ. Code § 1786.18).
Eviction history: Eviction history has a look-back period of seven years, but landlords cannot consider sealed records and dismissed or settled cases (Cal. Civ. Code § 1785.13).
Portable tenant screening reports: California allows portable tenant screening reports, but doesn’t require them.
Pets, ESAs, and Service Animals
Not all household members stand on two legs. Pets and service animals need a place in your California rental application, too.
You can’t discriminate against applicants with an Emotional Support Animal (ESA) or service animal. However, tenants are responsible for property damage caused by their animals.
Pet information: Ask if the renter has a pet, ESA, or service animal in the application and inquire about their number, name, and breed.
Fair Housing Act: You can’t discriminate against a renter’s animal based on service status. ESAs and service animals are legally excluded from any pet deposit, pet rent, or pet fee. You can’t deny housing based on an ESA/service animal’s weight, size, or breed.
Federal Application Laws
From San Diego to Sacramento and beyond, these laws apply to every California rental application:
Fair Credit Reporting Act (FCRA): Landlords need an applicant’s written consent before running credit checks. If you deny a renter based on credit history, you must send them an adverse action notice (Fair Credit Reporting Act).
Equal Credit Opportunity Act (ECOA): This law protects renters who have received public assistance and regulates how landlords assess credit reports and rental applications (Equal Credit Opportunity Act).
Fair Housing Act (FHA): Landlords, property managers, and employees responsible for renter applications can’t discriminate against applicants based on these FHA-protected characteristics:
- Race
- Color
- National origin
- Religion
- Sex
- Familial status
- Disability
You can’t ask questions or deny an applicant based on these traits. The FHA bans advertising discrimination and unequal renting terms (Fair Housing Act).
Americans with Disabilities Act (ADA): Landlords can’t deny an applicant solely based on a disability, and they must make reasonable attempts to accommodate the tenant (Americans with Disabilities Act).
4. Use a Third-Party Screening Service
Time to perform a credit or criminal background check? Use a trusted provider to help you make the best decision for your business.
5. Check Application References
Verify application details by contacting past landlords or employers. Use these sample questions to get the information you need:
- Did they ever miss rent payments?
- Did they ever violate the lease?
- Would you rent to this tenant again?
6. Approve or Deny Applications
The best landlords in the game accept multiple applications on a first-come, first-served basis. Here’s what you should consider as you make a decision:
- Rental history: Less than a year of solid rental history available? Requiring a co-signer can help fill the gap.
- Rent-to-Income ratio: If the rent is more than 30% of the applicant’s monthly income, it’s a red flag for missed payments and rent default.
- Credit score: Look for renters who have a credit score of at least 600 to 670.
- Fact check on rental application: False or incomplete answers merit immediate rejection.
Denial Process
Denials must be legally compliant and consistent across all applicants. Credit history, income, rental history, false answers, and criminal background are legal grounds for denial in California.
Denial notice: You’re not required to send out tenant rejection letters.
Credit/Background denials: If you deny based on credit or tenant background checks, the FCRA requires you to send the renter an adverse action notice, including the reporting agency’s name, contact information, and the tenant’s right to dispute errors.
Document storage: Hold onto denied applications and screening reports for at least 3 years. They’re your first line of defense against discrimination claims.
Avoiding Fraud
Fraudulent rental applications are on the rise. Here’s what you can do to protect your investment:
- Always verify a renter’s identity and documents
- Run credit, background, and eviction checks
- Take steps to confirm employment and income details
- Reach out to past landlords
- Never overlook red flags
Sources
- 1 Cal. Civ. Code 1950.6(b)
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The amount of the application screening fee shall not be greater than the actual out-of-pocket costs of gathering information concerning the applicant, including, but not limited to, the cost of using a tenant screening service or a consumer credit reporting service, and the reasonable value of time spent by the landlord or his or her agent in obtaining information on the applicant. In no case shall the amount of the application screening fee charged by the landlord or his or her agent be greater than thirty dollars ($30) per applicant. The thirty dollar ($30) application screening fee may be adjusted annually by the landlord or his or her agent commensurate with an increase in the Consumer Price Index, beginning on January 1, 1998.
Source Link - 2 Cal. Civ. Code 1950.6(c) - (f)
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(c) Unless the applicant agrees in writing, a landlord or his or her agent may not charge an applicant an application screening fee when he or she knows or should have known that no rental unit is available at that time or will be available within a reasonable period of time.
(d) The landlord or his or her agent shall provide, personally, or by mail, the applicant with a receipt for the fee paid by the applicant, which receipt shall itemize the out-of-pocket expenses and time spent by the landlord or his or her agent to obtain and process the information about the applicant.
(e) If the landlord or his or her agent does not perform a personal reference check or does not obtain a consumer credit report, the landlord or his or her agent shall return any amount of the screening fee that is not used for the purposes authorized by this section to the applicant.
(f) If an application screening fee has been paid by the applicant and if requested by the applicant, the landlord or his or her agent shall provide a copy of the consumer credit report to the applicant who is the subject of that report.
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