Rejecting the wrong applicant for the wrong reason is one of the fastest ways to land in a fair housing complaint. California layers state protections on top of federal law, and the rules about what you can check—and what you must ignore—are specific. Here's exactly where the lines are.
What You Can Check
California landlords may evaluate applicants on legitimate business criteria:
- Credit history — with the applicant's written authorization and a permissible purpose under the FCRA
- Eviction history — reportable unlawful detainer filings and judgments
- Income and employment — typically verified at 2.5–3x the monthly rent, applied consistently
- Rental history — prior landlord references, payment patterns, lease compliance
- Criminal convictions — with significant limits (see below)
Whatever criteria you use, apply them identically to every applicant and put them in writing before you start showing the unit. Inconsistent standards are what turn a lawful denial into a discrimination claim.
What You Cannot Consider
Federal and California fair housing law (FHA + California FEHA) prohibit decisions based on race, color, religion, sex, familial status, disability, national origin, ancestry, sexual orientation, gender identity, marital status, and source of income — California landlords cannot refuse Section 8 vouchers.
Beyond protected classes, California specifically bars you from considering:
- Arrests that did not lead to conviction
- Sealed, expunged, or dismissed records
- Juvenile records
- Convictions older than seven years in most tenant-screening contexts
- Marijuana convictions that are now legal conduct
A blanket "no felons" policy is effectively unenforceable in California. If you consider criminal history at all, it must be an individualized assessment tied to a legitimate business reason — the nature and recency of the offense versus the risk to the property.
Application and Screening Fees
What you can charge for screening is tightly regulated and changed under AB 2493 — including when fees must be refunded if you don't run the screening. Because the fee rules are detailed enough for their own guide, the short version: charge only your actual out-of-pocket screening costs, provide the required disclosures first, and give the applicant a copy of any report you pull if you take adverse action.
Adverse Action Notices
If you deny an applicant — or approve with conditions like a higher deposit — based on a credit or background report, federal law requires a written adverse action notice stating:
- That the decision was based on information in a consumer report
- The name, address, and phone number of the reporting agency
- The applicant's right to a free copy of the report within 60 days
- The applicant's right to dispute inaccurate information
Skip this notice and you've handed a denied applicant a ready-made claim, even if the denial itself was justified.
Document Everything
For every applicant: the application, the criteria applied, the reports pulled, and the reason for the decision — kept in the same format for everyone. If a fair housing complaint lands two years later, your file is your defense. "I just had a bad feeling" is not a defense.
Quick Reference for Landlords
- Write your criteria first — income multiple, credit standards, rental history — before listing the unit
- Apply them identically to every applicant, no exceptions
- Get written authorization before pulling credit or background reports
- Ignore arrests without conviction, sealed records, and source of income
- Send adverse action notices whenever a report influences a denial
- Keep the full file on every applicant, approved or denied
Keep applications and screening records organized
LeaseConnectPro keeps applications, screening criteria, tenant records, and important notices together so you apply one standard to everyone and can prove it.
This article is for general informational purposes and isn't legal advice. For guidance on a specific screening situation, consult a California landlord-tenant attorney.
Frequently Asked Questions
Q: Can a California landlord deny an applicant for a criminal record?
A: Only through an individualized assessment of convictions — never arrests without conviction, sealed records, or blanket bans. The offense must be weighed against legitimate property risk.
Q: Can I refuse Section 8 vouchers in California?
A: No. Source of income is a protected class in California — refusing a tenant because part of their rent comes from a voucher is housing discrimination.
Q: What income multiple can I require?
A: There is no statutory multiple, but 2.5–3x monthly rent is standard. Whatever you choose, apply it consistently and document it in your written criteria.
Q: Do I have to tell an applicant why I denied them?
A: If the decision was based on a credit or background report, yes — a written adverse action notice is required under federal law, including the reporting agency's contact information and the applicant's dispute rights.