California has decided to end favoritism in rental housing by 2025: how it will affect you if you are looking for an apartment

More than 60 housing-related bills were signed into law by California Governor Gavin Newsom this year, most of which will take effect on January 1, 2025. They deal with a range of issues in the Golden State from addressing homelessness to increasing housing construction and Accessory Dwelling Units (ADUs).

Additionally, laws that affect the rights of tenants will become effective at the start of the year. One of those deals with screening and accepting potential new tenants. Here’s a look.

California has decided to end favoritism in rental housing by 2025: how it will affect you if you are looking for an apartment

Beginning New Year’s Day, AB 2493, which deals with tenant application screening fees will take effect. Going forward landlords or their agent must give the rental unit to the first applicant that meets the established screening criteria laid out by the property’s owner. This must be provided in writing along with the application to the prospective tenant.

The law also establishes new rules about collecting a application fee. Under existing law, landlords or their agent are allowed to charge an application fee so that they can cover the cost associated with obtaining information about the applicant.

Currently, they are not allowed to collect a fee if they know that no unit is available or will be within a reasonable amount of time.

The bill passed and signed into law this year would only allow a landlord or their agent to collect an application fee at the time it is submitted if a screening process will be carried out as specified.

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The landlord or agent will also be required to provide an itemized receipt of the out-of-pocket expenses incurred and time spent to obtain and process the information about the prospective tenant.

Landlords or their agent must refund the screen fee within 7 days to any applicant whose application was not considered. However, if they perform the required consideration and find that the applicant does not meet the criteria and deny the applicant no refund is required.

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