Tenant screening is one of the most important steps in protecting your rental property. However, in California, it’s not as simple as pulling a credit report and choosing the best applicant. Laws surrounding the screening process are strict, and in 2025, they’re even more complex.
If you don’t follow the rules, you could face lawsuits, fines, or even be barred from renting your property. That’s why understanding the latest regulations is essential.
At Hignell Property Management, we keep up with tenant screening laws in California so you are protected. Here's what every landlord needs to know heading into 2025.
Key Tenant Screening Laws California Landlords Must Follow
California has some of the most tenant-protective laws in the country. These laws don’t just apply to large companies, they apply to you, even if you only manage one or two properties.
Let’s break down the key areas to pay attention to in 2025.
In 2025, California set a maximum screening fee that landlords can charge per applicant. The amount is adjusted annually based on the Consumer Price Index.
You must also provide an itemized receipt showing how the fee was spent if requested.
Before you run a background or credit check, you must:
Failure to do so violates both California law and the federal Fair Credit Reporting Act.
Knowing what’s off-limits is just as important as knowing what’s required. Violations can lead to discrimination claims and lawsuits.
Even well-meaning questions can cross legal lines. Stick to objective, housing-related criteria.
If you decide to deny an applicant based on their credit, background, or other screening results, you must provide an Adverse Action Notice that includes:
This step isn’t optional. Skipping it opens you up to legal risk, even if your decision was justified.
You don’t need to discriminate intentionally to get into trouble. Many landlords get into trouble simply because they’re unaware of the rules.
Here are some of the most common screening mistakes we see:
It’s easy to slip up if you’re screening tenants on your own or using generic templates. That’s why consistency, documentation, and staying informed are critical.
Following the law is only part of the equation. Screening should also help you find the best tenants for your property: people who will pay on time, respect your property, and stay long-term.
Here’s how to make that happen.
Decide in advance what your approval standards are and apply them equally to every applicant. This protects you from legal claims and helps you make better choices.
At a minimum, set thresholds for:
Don’t just “go with your gut.” Put it in writing.
Document everything.
If someone challenges your decision or files a complaint, you need to show the criteria you used, the documents you reviewed, and the reason for the denial.
This protects you and builds trust with tenants who expect fair and transparent processes.
Tenant screening laws change frequently in California. What was legal last year might be restricted now. We recommend:
Navigating California’s tenant screening laws isn’t easy, especially when you’re also juggling repairs, tenant requests, and other day-to-day tasks. That’s where professional property management makes a big difference.
At Hignell Property Management, our processes are built around compliance. We monitor legal changes, adjust our screening systems, and ensure all notices and permissions are correctly handled, automatically.
You don’t have to memorize new laws or worry about whether your forms are outdated. We’ve got it covered.
We use industry-leading tools to run thorough but fair background checks, income verifications, and credit reports.
Our team screens tenants faster and more thoroughly than most DIY landlords, using established criteria that protect your investment and reduce risk.
If a tenant challenges your denial or your process is audited, Hignell Property Management provides the documentation and legal support you need. We know the system and operate by the book.
Our job is to keep your property profitable and your business legally sound so that you can focus on the bigger picture.
Tenant screening is too important to get wrong and too complicated to leave to chance.
In 2025, California landlords face more legal requirements than ever. Even simple mistakes like using the wrong form or asking the wrong question can lead to big consequences.
At Hignell Property Management, we help property owners like you screen smarter, stay compliant, and protect your rental income. Our team takes the guesswork out of leasing, so you can rent with confidence.
Contact us today to learn how we can simplify your tenant screening and make property management one less thing on your to-do list.
