If you charge tenants a fee to apply for your rental property, there’s a new California law that directly affects you starting July 1st.
AB 2493 introduces changes that limit how much you can charge and tighten the rules around transparency and documentation. Here’s what you need to know—and what you should do now to stay compliant and avoid penalties.
📌 What Is AB 2493? AB 2493 is a new law that modifies the maximum rental application and screening fees landlords can charge in California.
Key Highlights: New Maximum Fee The limit is no longer a fixed number—it’s now tied to inflation via the Consumer Price Index (CPI). 💡 That means it will adjust every year based on economic conditions.
Documentation Requirements: If requested, landlords must provide a receipt for the screening fee and disclose actual costs (like background or credit checks).
Fee Limits Apply Per Applicant: You cannot combine multiple application fees or charge for extras outside of what's allowed.
⚠️ Why This Matters Ignoring AB 2493 could lead to:
🚫 Overcharging violations
⚖️ Legal claims from applicants
📉 Loss of credibility and tenant trust
Even accidental mistakes could result in complaints or fines—especially as tenants become more aware of their rights.
✅ What Should Landlords Do?
Here are smart steps you can take before July 1st:
Audit Your Current Fees Review what you charge and ensure it's within the CPI-based cap.
Provide Receipts Set up a system (manual or digital) to issue receipts and document screening costs.
Train Your Team If you use leasing agents or property managers, make sure they know the new rules.
Be Transparent Consider adding an explanation of your screening fees to your application or website.
Use Reputable Screening Tools Choose vendors that are upfront with pricing and provide documentation you can pass on to applicants.
🛠️ Landlords: Stay Compliant, Stay Ahead AB 2493 isn’t just a regulation—it’s a call to tighten up your process and lead with professionalism.
By making a few small changes, you can avoid legal trouble and create a smoother experience for both you and your tenants.
