California has some of the nation's most restrictive tenant screening laws. What's permissible in other states may violate California law, exposing landlords to discrimination claims and penalties. This guide covers the legal requirements every California landlord must follow when screening prospective tenants.
Application Fee Regulations
California Civil Code Section 1950.6 strictly regulates application fees. You may only charge actual out-of-pocket costs for screening, up to a statutory maximum (approximately $60 in 2026, adjusted annually). Fees must be itemized showing what costs are covered. You cannot charge application fees if no units are available. Fees are non-refundable only if you actually conduct screening.
Criminal Background Check Restrictions
California significantly limits how criminal history can be used in tenant screening. You cannot automatically reject applicants based on criminal history—blanket policies violate fair housing law. You cannot consider arrests that didn't result in conviction. Most convictions older than 7 years cannot be considered. You must conduct individualized assessment of any criminal history.
The Individualized Assessment Process
If criminal history is discovered, California requires landlords to consider the nature and severity of the offense, time elapsed since the offense, evidence of rehabilitation, and whether the offense relates to tenancy qualifications. You must provide applicants opportunity to explain circumstances before making decisions based on criminal history.
Important: Drug-related convictions cannot be used to automatically reject applicants. Only current illegal drug use (not past use or convictions) may be considered, and even then requires individualized assessment.
Source of Income Protections
California prohibits discrimination based on source of income. You cannot refuse to accept applications from Section 8 voucher holders, reject applicants because income comes from government benefits, or treat applicants differently based on whether income is from employment, investments, or assistance programs. Voucher holders must still meet your other legitimate screening criteria, but the voucher itself cannot be grounds for rejection.