Legal Question in Business Law in California

Re: Rntal

Yes, a landlord may ask for and receive application fees from prospective tenants. The amount cannot exceed the actual cost of a credit check plus the reasonable value of the landlord's time in requesting and reviewing credit, personal references or other pertinent information. In 1998 when the law was passed (Civil Code section 1950.6), the amount was capped at $30 per applicant, but the law allows landlords to adjust the $30 annually in accordance with inflation, so I would guess the ceiling is around $35 today.

Remember, that's per applicant, so if there are going to be roommates on the lease, the ceiling is applicable to each, i.e. for two people as much as $70 might be permissible.

If the landlord does not perform the check, the applicant is entitled to a refund. If the landlord obtains a credit report, the applicant is entitled to request and receive a copy.

There are other provisions. You may want to read CC 1950.6 yourself on line or at a library.