Another new landlord-tenant law that all landlords must be prepared for in 2025 is AB 2493, a California Assembly which requires new regulations for rental application processes starting in 2025. 

The law aims to promote fairness and transparency for prospective tenants, addressing non-refundable fees and arbitrary application practices that burden renters in California's competitive housing market.

In this article we will offer you a synopsis into AB 2493 so that you will know how it’s going to affect your business.

Getting To Know AB 2493

"First Come, First Served" Policy:

Landlords must consider rental applications in the order they are received rather than selecting the "strongest" applicant. This prevents potential discrimination and ensures applicants are evaluated based on predefined screening criteria.

Refundable Application Fees:

Application fees can only be collected if the applicant is actively considered for tenancy. If the landlord decides to reject an applicant, they must refund any unused portion of the fee within seven days or provide an itemized breakdown of the costs incurred for processing.

Screening Criteria Disclosure:

Landlords are now required to provide written screening criteria to applicants at the time of application submission. This ensures transparency and allows tenants to self-assess eligibility before paying a fee.

Documentation Requirements:

For declined applications, landlords must supply a copy of the credit report and an itemized receipt detailing the costs covered by the application fee. These documents must be provided within seven days of the rejection.

Enforcement and Exceptions:

While small property owners are largely exempt, larger landlords must comply, especially corporations or those managing multiple properties. Non-compliance can result in legal penalties.

Impact:

AB 2493 levels the playing field for tenants and reduces financial strain caused by repetitive application fees. For landlords, the law emphasizes detailed documentation and adherence to fair practices. While some may find the changes administratively challenging, the law supports equitable access to housing.

Let our property management team save you the time, money, and hassle of staying on top of changes to landlord-tenant laws yourself. Learn more about the services that we can offer you by calling us at (866) 545-5303 or click here to connect with us online.

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