AB 2493: California’s New Rules for Tenant Applications & Screening Fees (2025 Guide)
California has passed another rental housing law — but unlike some recent changes that carved out exemptions for small landlords, AB 2493 applies to everyone. Whether you own one unit or one hundred, if you charge application screening fees, you must now follow the new rules.
Effective January 1, 2025, AB 2493 changes how landlords can collect, use, and refund screening fees under California Civil Code § 1950.6. The goal is to make the application process more transparent and fair to tenants, but it also creates more steps and more risk if you’re not careful.
At Mission City, we know application fees are often the first point of contact with new tenants — and one of the easiest ways for landlords to slip into noncompliance. Here’s what you need to know.
1. What AB 2493 Says
AB 2493 sets three legal methods for handling application screening fees. Every landlord must choose one.
Option A: First-Qualified Applicant Process
Applications must be processed in the order received.
Written screening criteria must be provided upfront.
You can only collect the fee when reviewing a qualified applicant, not from every single person who applies.
Option B: Reusable Screening Reports
Applicants may use a third-party reusable screening report (usually valid for 30 days) to apply for multiple rentals. The applicant pays for the report once and can use it across different properties. If they provide this report, you cannot charge them another application fee — even if your normal process would include one.
Option C: Refund Non-Selected Applicants
You may charge fees from multiple applicants, but you must refund those fees for anyone not selected.
Refunds must be issued within 7 days of choosing a tenant, or within 30 days of the application if no one is selected.
You may also offer to apply the fee to another available unit instead.
Source: California Civil Code § 1950.6, updated by AB 2493 (2024). (Senate Judiciary Committee Bill Analysis, June 2024)
2. Other Key Requirements
Credit Report Delivery: If you charge a fee, you must provide the applicant with a copy of their credit report within 7 days, without requiring them to ask.
Transparency: Screening criteria must be disclosed before collecting any fee.
Fee Cap: The maximum fee remains around $66 per applicant in 2025, adjusted annually for inflation.
3. Why This Matters for Landlords
For years, landlords often charged application fees to anyone who applied, regardless of whether they were seriously considered. AB 2493 ends that practice:
You can no longer collect fees from dozens of applicants without processing them fairly.
Refund deadlines mean more administrative tracking.
Missteps can result in tenant complaints, lawsuits, or enforcement action from the California Civil Rights Department (CRD).
Noncompliance exposes landlords to legal penalties, disputes, and attorney’s fees that far outweigh the small application fee itself.
4. Mission City’s Approach
At Mission City, we’ve simplified compliance by adopting the first-qualified applicant process (Option A).
That means:
Applications are processed in the order they’re received.
Our screening criteria are clear and consistent across every unit.
Fees are collected only when an application is fully completed and ready for review — never before.
By applying one standard across all properties, we keep owners compliant, reduce disputes, and maintain professionalism with tenants from the very first interaction.
✅ Key Takeaways
AB 2493 (effective Jan 1, 2025) applies to all landlords — no exemptions.
Landlords must choose one of three legal options for application fees (first-qualified, reusable reports, or refunds).
Applicants must receive a copy of their credit report within 7 days.
Noncompliance risks lawsuits, refunds, and CRD enforcement.
Mission City streamlines compliance by using the first-qualified applicant method.
