California’s AB 2493: New Rules on Application Fees for Landlords

January 6, 2025 0 Comment Category: Uncategorized

As of January 1, 2025, Assembly Bill 2493 is now in effect, imposing strict regulations on application fees for tenants. These new rules create significant challenges for landlords and property managers.

Key Provisions of AB 2493

To charge an application fee, landlords must:

Process applications in the order they are received.
Approve the first applicant who meets screening criteria.
Delay charging fees until the application is actively reviewed.

Alternatively, landlords must refund fees if:

An applicant is not selected within seven days of leasing to another tenant.
No decision is made within 30 days of the application’s submission.

These rules reduce flexibility in tenant selection and make fee refunds highly likely

DSLG Recommendation: Stop Charging Application Fees

AB 2493’s requirements and refund mandates undermine landlords’ ability to screen applicants effectively. Davidovich Stone Law Group, LLP recommends that landlords and property managers cease charging application fees to avoid:

Violating AB 2493.
The administrative burden of managing fees and refunds.
Losing control over tenant selection decisions.

What You Can Do

Adjust Screening Processes: Remove application fees and explore alternative methods for tenant screening.
Stay Informed: Monitor updates to the law and review internal policies to ensure compliance.
Engage in Advocacy: Join landlord organizations to voice your concerns and influence future legislation.

For guidance on adapting to AB 2493 or any other rental property regulations, contact Davidovich Stone Law Group, LLP. Our team provides strategic, business-focused legal solutions to protect your interests.

LATEST IN THE LAW