Landlords and property management companies within California typically require applicants to fill out an application form anytime they apply for a rental unit within the state. The information in this form enables property owners to assess the applicant’s suitability to live in the rental property, enabling them to make informed decisions regarding tenancy. This article provides a comprehensive guide on rental application forms in California.
What is a California Rental Application Form?
A California rental application form is an essential document that property owners and real estate management companies use to screen prospective tenants.
It is a detailed questionnaire that asks for information regarding the prospective tenant’s details such as name, State identification number or driver’s license, etc., previous rental history, employment, income, and credit history. The rental application form also requests the applicant’s contact information for reference purposes in case the landlord or property management company requires additional information about the applicant.
It is essential to note that the California Federal Fair Housing Act restricts property owners from asking questions regarding immigration or citizenship status on the rental application. Discriminating against applicants based on their race, gender, skin color, nationality, religious preference, family status, disability, age, or criminal convictions is also prohibited.
Property managers must distribute a standardized rental application form to all prospective tenants to conform to the California Fair Housing Laws. The form should then be completed and signed by the applicant and anyone else sharing the property with the primary resident, provided they are over the age of 18.
By completing a California rental application form, applicants authorize landlords to conduct background checks on them. This encompasses running a credit check and verifying the applicant’s employment and rental history. To conduct an applicant’s credit and background check, property owners may need to pay a certain fee. As a result, they often require applicants to pay a non-refundable fee to cover these costs.
Property owners and managers within California are allowed to charge an application fee that does not exceed $53.33 to cover a landlord’s out-of-pocket tenant screening costs. The California Laws further dictate that any unused portions of the application fee be refunded to the applicant.
Other screening statutes include:
- If a Californian property owner runs a credit check on an applicant, they must provide a copy of the credit report to the applicant, if requested
- If the prospective renter has a freeze on their credit report, the applicant must make arrangements to temporarily suspend the freeze or allow access to the landlord. If the applicant refuses to allow access to their credit report, the landlord can reject the rental application.
- Landlords in California may inquire about the smoking status on their rental application and deny occupancy based on the information provided in this section of the California rental application form. The screening criteria may also include other policies such as no pets, no violent crimes, no previous evictions, etc., but this information should be clearly written down for safekeeping.
The information in a rental application form is typically used to screen tenants for tenancy in California. For example, the applicant’s employment status and source of income are important considerations because they help identify a suitable tenant who is most likely to make their rent payments on time. Similarly, the applicant’s prior rental records help determine whether they have a reliable track record with past rental agreements.
Credit checks enable landlords to determine the applicant’s likelihood of defaulting on payments. A non-refundable application fee is also necessary because it serves as an additional screening process for rental property owners in California. This is the case because applicants who are not fully invested in signing the residential lease agreement will most likely be deterred by the application fee and the time taken to complete the California rental application form.
Prospective tenants may be denied tenancy if the property owner/manager finds that their credit rating or background check results are unsatisfactory. However, the applicant can sign a residential lease agreement if the given information satisfies the landlord.
Why is it Important to Use the California Rental Application Form?
A rental application form provides landlords with a safe and organized method of gathering information about prospective tenants. It also helps eliminate a landlord’s personal biases from the screening and decision-making process by asking potential renters similar questions. This allows for clear-cut comparisons without discrimination which is imperative for landlords to make fair tenancy decisions and abide by the California fair housing laws. A California rental application form is also helpful in informing prospective renters about the landlord’s expectations regarding their behavior while staying in the rented units.
State Laws
The laws regarding rental applications and tenant screening in California are covered in the California Civil Code. For instance, section 1946.2 requires landlords to disclose all information regarding the tenant screening process and provide a list of documents needed to complete the application form. California laws also require property owners or their authorized representatives to inform applicants about the status of their application within 1-2 days of receiving it and notify them whether or not they meet their tenancy criteria.
Other laws governing the rental applications and tenant screening in California are as outlined in the section below:
Application fee
The California Civil Code section § 1950.6 allows landlords to collect a non-refundable application fee from applicants when accepting their rental applications. However, the rental application fee amount should not exceed the out-of-pocket costs associated with gathering the applicant’s pertinent information and the reasonable value of time spent by the property owner or their agent doing background checks on the applicant.
Generally, the non-refundable application screening fee for Californian tenants should not be greater than $30 per applicant. Nonetheless, the landlord or agent can adjust this amount annually based on inflation (increase in the Consumer Price Index). It is also essential to note that unless agreed upon in writing, a property owner cannot charge an applicant the application fee if they know that there are no rental units available at the time or will only be available after some time
Once the application is completed, the landlord or their authorized agent must provide the applicant a receipt of the fee paid, either personally or by mail. The receipt must incorporate an itemized list of the out-of-pocket costs incurred and time spent by the landlord in obtaining information relating to the given applicant.
For example, suppose the landlord does not conduct a background check on the applicant. In that case, the property owner or manager should return any amount of the screening fee not used for the purposes authorized by section § 1950.6 of the California Civil Code to the applicant.
Security deposit
Landlords within the state of California are allowed to hold security deposits in escrow, as required by section (Cal. Civ. Code § 1950.5(c). The security deposit is payable at the beginning of the tenancy agreement and should be refunded to the renter within 21 days of termination of the tenancy agreement.
The maximum amount of money a landlord may charge as a security deposit for an unfurnished apartment is equal to 2 months’ rent. For furnished units, the security deposit charged should not exceed three months’ rent.
Pet deposit
Landlords can collect pet deposits from applicants who apply for tenancy with pets. However, the amount a landlord can request as a pet deposit is not specified in the state statutes.
In most cases, the amount charged as a pet deposit typically varies and is set based on the number of pets kept, breed type, the size of the pet, and the specific property owner. If the applicant is authorized to keep pets, note that the pet deposit and security deposit are refundable within 21 calendar days of termination of tenancy, less any lawful deductions.
Final Remarks
A rental application form in California is an essential legal document that is used by property owners and real estate management companies to screen potential renters before they are allowed to sign a lease agreement. The rental application form helps ensure that only highly-suitable applicants rent the property. The form is also crucial because it ensures landlords avoid discrimination in the rental application process.
An effective rental application form in California incorporates crucial information about applicants, such as their personal information, rental history, employment details, income information, credit history, personal references, and consent for background checks. Additionally, the document contains several disclosures regarding the rental property, including the property’s condition, potential hazards, rent control rules, shared utility arrangements, security deposit, pet deposit, rental application fee, etc. When filled correctly and accurately, the California rental application form allows both parties to securely and safely verify that an agreement can work out in the long term by providing necessary information up front in writing.