California law tries to strike a balance between protecting your rental and tenant rights. My desire is to pre-screen people at the open houses by asking some of the questions above on paper (# people, pets, income, credit score. Landlords also have rights, such as the right to collect rent and to collect for property damages that exceed normal wear and tear. Leave this field empty if you're human: Privacy Policy: Your info will never be shared or sold to a 3rd party. My #1 Question Click here to download your free template A California Lease or Rental Application is a form used by California landlords to screen and vet potential tenants to determine whether they are reliable and able pay rent in a timely manner. Why Do Landlords Need to Collect a Rental Application? callback: cb Any prospective tenant can act like the best tenant in the world during the initial walk-through. You will be required to provide a copy of the credi… Landlords are not permitted to evict tenants in retaliation for exercising their housing rights (i.e. Rental Application Even if Dr. It’s about time the internet had a single place with all of the most up-to-date information from leading experts in property management, investing and real estate law. California small claims court will hear rent-related cases amount up to $10,000. California landlords do not need permission to enter for emergencies that threaten the health and safety of the tenant. It’s your opportunity to set expectations for your rental process, which will help you attract quality tenants. California state extends additional protection to tenants on the basis of ancestry, citizenship status, mental disability, gender identity/expression, immigration status, marital status, military and veteran status, primary language, sexual orientation, and source of income. If there’s one thing I’ve learned in my years as a landlord, it’s that good returns follow good tenants. The security deposit is $X. What short-term fix-and-flip loan options are available nowadays? Just make sure you have some kind of uniformly applied system that you can defend if pressed. Requiring different information from different protected classes of applicants violates landlord Fair Housing laws. How Much Notice Does a Landlord Have to Give a Tenant to Move out in California? The laws and regulations governing California tenant rights are derived from . Under state law, California landlords must disclose specific information to tenants (usually in the lease or rental agreement), such as whether the gas or electricity in the tenant’s rental also serves other areas and information about toxic mold if the landlord knows that mold on the property exceeds exposure limits or poses a threat to the tenant’s health. Ep.32 – The Formula to Retire Young w/Chris Mamula of Can I Retire Yet? Tenant screening, an aspect of rental housing, is subject to all fair housing legislation. Check back for updates. The law does not specify how this notice is to be delivered, but writing is the most common. Here’s where you can access our free rental application for California. Tenant Advocacy Tool Kit. Sacramento has the Sacramento Tenant Protection and Relief Act that covers rental housing in the city built after 1995. on: function(evt, cb) { tenant relationship is governed by federal, state, that tenants and landlords will use this booklet’s and local laws. The application process for the State’s rental assistance program is expected to open in March. I am interested in and suggests things that both the landlord and They cover requirements for the violation of a lease agreement, the ability of landlords to enter occupied properties, tenant fees, security deposits, how to write a lease and more. I see application refusal forms which provides a reason.. is that needed/ required? Can a Tenant Change the Locks in California? California landlords are required to provide a habitable dwelling and must respond to repair requests in a “reasonable” amount of time, which is normally interpreted as 30 days. Extending the notice period for nonpayment of rent from 3 to 15 days to provide tenant additional time to respond to landlord’s notice to pay rent or quit. Is California a “Landlord Friendly” State? It also builds a strong foundation for the ongoing relationship between you and your tenant; you will both be able to proceed with confidence of your mutual respect and trust and start the rental off on the right foot. Rent-related fees. If they have been renting for more than a year, then they are entitled to at least 60 days’ notice. These payments can be valued up to $4,500 and can be triggered when a tenant receives notice of rental increases of 10% or more. CAA will post information about the program as soon as it is available. (Since it costs $40 I don’t want people to waste their money on application if not a top prospect). forms: { LA rent control policies only apply to buildings built after 10/01/1978. Oakland also has a Rent Adjustment program that covers other types of rental housing. listeners: [], But keeping your tenant screening reports and rental applications gives you documentation to show the judge, that you rented to the more qualified applicant. You need to find renters who will make your life easier as a landlord, not harder. official state statutes. Heat Map: The Hottest Real Estate Markets in 2021, Emotional Support Animals & The Fair Housing Act – What Landlords Need to Know. © 2020, iPropertyManagement.com. Known officially as Assembly Bill 1482, the Tenant Protection Act has earned the nickname the “anti-rent-gouging-bill.” The legislation enacts a statewide rent control in California for the next ten years, or longer if lawmakers vote to extend its provisions. California Landlord Forms. “lockouts”). All Rights Reserved. With a good tenant, you can sleep easy at night as a landlord knowing the rent will get paid and the property will be well cared for. In addition to the below, check your local county and municipality for additional landlord-tenant regulations. California landlords are generally forbidden from requiring tenants to pay rent in cash. by Guest Author | Last updated Oct 23, 2019 | Advertising & Tenant Screening | 10 comments. Criminal Background Check: In addition to pulling credit reports, you need to screen renters’ background. However, landlords can only file up to 2 cases amounting to more than $2,500 in a single year. NEW free masterclass! the “California tenants” booklet is a practical resource for both tenants and landlords. I have not done any pre-screening aside from putting my minimum credit score, income requirements and “no evictions” in the listing. This rule does not apply to owner-occupied homes or homes operated by religious organizations. Will you submit a California rental application and authorize a background check? Maintaining overly strict rules for families with children, including where children can play. So what do California landlords need to know about collecting rental applications and screening applicants, to only lease to high-ROI tenants? Pre-screening also enhances your overall screening process. For instance, you cannot require a white applicant to provide a copy of a tax return and a Hispanic applicant a copy of his employer-provided W-2 form. })(); To summarize this code section, it basically says the following: Upon the first enactment of Civil Code §1950.6, landlords and property managers were not allowed to charge more than $30 per application fee. } Why Landlords Should Interview Prospects Before Collecting a Rental Application in California? Fresno has extra landlord-tenant regulations that put stricter measures on housing conditions. 1. Get a quote or see how it works: (function() { Los Angeles Housing and Community Investment Department website, City’s Housing and Community Development Services website, California Department of Housing and Community Development, A Guide to Residential Tenants’ and Landlords’ Rights and Responsibilities, California Tenant Protection act AB 1482. It’s an occupational hazard of being a landlord. More information on these rules can be found on the Los Angeles Housing and Community Investment Department website. This law prevents excessive year-to-year rent hikes and also requires landlords to justify raising rental prices. Anyone who isn’t living in the home but who is co-signing the lease should fill out a rental application. The rental application in California, together with a reliable real estate lease, reduces your liability risk and helps protect your investment. Since you can’t always judge a book by its cover, tenant credit reports allows you to dig deeper into the financial habits of the prospective tenant. These are just a handful of state rental application laws. This figure is different for each jurisdiction. Alternatively, landlords can have the applicant pay any tenant screening fees directly (which is how our tenant screening service works – you can select that the applicants be charged directly). It is illegal for a property manager or landlord to refuse to process a rental application or deny a rental applicant based on information related to protected classes under Federal Fair Housing Laws. The law, known as Assembly Bill 1482 or the “Tenant Protection Act of 2019,” is designed to prevent the most “egregious” rent hikes across California, where most renters are … Vacant Unit? The rental application in California is also where applicants legally declare, on penalty of perjury, that the information is correct. How to Become a Property Manager: And How It Makes You a Better Investor. A standard Rental/Lease Application provides a landlord with the opportunity to screen for any red flags a tenant may raise, ranging from credit history to past employment references. For example, in California prepaid rental services must be licensed by the California Department of Real Estate. California landlords are required to assist in the re-renting process in a “reasonable” manner. If a California tenant on a periodic lease wishes to terminate their lease, they must give the following amounts of notice. ); The new law on immigration aims to target discrimination. We’ve included an to help you start earning income from rentals. Evil offered us $1 million :-). Required fields are marked *. Landlords have responsibilities just as tenants do. The Federal Fair Housing Act prohibits discrimination in the rental, sale or financing of housing based on race, color, national origin, religion, familial status and disability. Usually, people who don’t want to fill out an application aren’t ready to commit, or they don’t think they would pass your screening requirements. According to California law (CA Civil Code 1940-1954.05), under a lease, tenants have certain rights such as the right to a habitable dwelling, due process for evictions, and more. The California rental application is a legal document used by landlords to collect information about their proposed tenants and use it to vet them. Read: cover your tenant screening costs, but don’t earn a profit. Start with a free tenant background check to start the process, and you can use our landlord app to run any or all of the tenant screening reports above. Save my name, email, and website in this browser for the next time I comment. Hi Jan, yes you can ask pre-screening questions so you don’t waste your time by showing the property to someone who’s not qualified anyway. When you decline one applicant and sign a lease agreement with another, the declined applicant can sue you. More info about these programs can be found here and you can contact the City of Oakland for more information on administration. We'll email you the "recipe," plus a free mini-course on passive income over the next week, so enter your best email! The Act can be read here and more info can be found here. If interested renters walk away because of your policy, you’re probably better off. If you don’t ask the right questions during pre-screening, you end up wasting your time. No sales pitch, just critical info for investors. The California Fair Employment and Housing Act highlights the following behaviors as potentially discriminatory when directed at a member of a protected group: California landlords must give at least 24 hours’ advance notice before entering an occupied unit. Evil offers us 1 million dollars . The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. What Are a Tenant’s Rights in California? From what I understand in the state of California is it illegal to charge over $50 (2019). Apart from paying rent in a timely manner, California tenants must: Landlords in California are empowered to evict tenants for the following reasons: At-will tenants are entitled to receive at least 30 days’ notice before being evicted. filing a health or safety complaint). This can be a lot of questions to ask all up front, but it will give you the best sense of how qualified a tenant lead is from the start. If a landlord wants a tenant to pay in cash, they must provide written notice of why the policy is needed and whether this policy changes any terms in the original lease agreement. U.S. Department of Housing and Urban Development | 451 7th Street S.W., Washington, DC 20410 Telephone: (202) 708-1112 TTY: (202) 708-1455 Credit Check: An applicant’s income tells you whether they can pay. } California law assumes that rent is received by the landlord on the day it is postmarked (Civil Code Section 1962(f)). We have a single unit on the our property. More info can be found on the City of San Jose website. The later stages of tenant screening, including the rental application, reaching out to references, and analyzing a credit and background check, should be reserved for tenant leads who have a high chance of being qualified. More details can be found here and on the city of Long Beach’s website. An applicant’s credit report tells you whether they will pay. Rental applications also contain asset information that’s useful later, if you have to pursue a deficiency judgment. Open rotating credit lines as a real estate investor! But if you want to make sure you’re getting the best renter, it’s important to screen every prospective tenant thoroughly before signing a lease agreement, and that starts with the rental application. Just make sure you keep your pre-tenant screening questions far away from relating to the “protected classes” under Fair Housing laws. } this booklet focuses on California information to avoid problems in the first place, laws that govern the landlord-tenant relationship, and to resolve those problems that do occur. San Jose law prevents landlords from increasing rent higher than 8% over periods of time. BUT I want to make sure I stay legal, of course — does this plan work, and/or anything I need to keep in mind? There are also limits to what they can charge you for a security deposit. On Wednesday, the new year ushered in a new law in California for Rent Control. California Civil Code 1950.6(a) states, in relevant part, “when a landlord or his or her agent receives a request to rent a residential property from an applicant, the landlord or his or her agent may charge that applicant an application screening fee to cover the costs of obtaining information about the applicant.”. Extends the time for a Native American tribe to respond to a consultation request for California Environmental Quality Act (CEQA) document by 30 days for any housing development application deemed complete between March 4, 2020, and Dec. 31, 2021. Too many landlords feel like they don’t have time to screen every renter thoroughly, that they’re losing money every day the rental sits vacant. California landlords must make 5 mandatory disclosures: California landlords are not allowed to change locks unilaterally as a form of evictions (i.e. Here are key provisions of the California law: Landlords may charge a maximum screening fee of around $35 per applicant. This law caps rental rates based on inflation and establishes jurisdictions for local rent control. Is another type of communication required back to the applicants which were not as qualified? But if a tenant submits false information about themselves in a rental application and signs it, I’d think that meets the legal definition of perjury. How about long-term rental property loans? Can I ask for references from your former landlords and employer? In summary, you cannot base any action or decision in the screening process on any aspect of an applicant’s membership in one of the protected classes. After accepting application and screening fee, what feedback am I required to perform? California Tenant Protection act AB 1482. This kind of criteria can be easily determined during an initial conversation. Can my leasing agent legally ask my partner and I to each fill out an application that costs $40? The process is made easier and advantageous to both the landlord and the tenant as the landlord can know their tenant’s information beforehand. If a potential tenant fills out a rental application and it doesn’t indicate info contained therein is under penalty of perjury, is it actually under penalty of perjury? Speaking of which, there’s NO law in California barring a potential tenant from “lying” on a rental application. event : evt, A Guide to Residential Tenants’ and Landlords’ Rights and Responsibilities. Anyone who moves in at a later date should fill out a rental application in California. The reason all those groups need to fill out a rental application is to let you know who is living in your property. If they have a good credit history and pay their bills on time, chances are they’ll pay their rent on time as well. California Landlord Forms are necessary throughout every tenancy. Tenant Advocacy Tool Kit. Free California Rental Application Form - PDF – eForms. Ready to build passive income from small multifamily properties? Your email address will not be published. window.mc4wp.listeners.push( A rental application is an important part of tenant screening, in a perfect world, a landlord could trust all people who wish to rent from them. Eviction History Report: This gets to the crux of the matter: has the applicant violated other landlords’ lease agreements, and had to be evicted? More info on this law can be found here; Rental increases. Property Management Masterclass. For furnished rentals, a landlord may not demand more than three (3) months rent for a security deposit … Which Occupants Need to Fill Out a California Rental Application? Here’s some quick info you should be aware of as a landlord. More info can be found on the City’s Housing and Community Development Services website. San Fran’s rent control ordinances outline when and how tenants can be evicted, either for or without cause. We'll email you the course videos over the next week, so enter your best email! California has become the second state to approve statewide rent control, extending protections to an estimated 8 million renters and establishing some of the country’s strongest tenant safeguards against rent hikes and evictions.. Note: These rights exist regardless of a rental agreement stating otherwise. It will cost the property manager and you money to process a rental application, which is why this happens. { California uses the federal standard to gauge whether or not a post-foreclosure notice was provided in a timely manner. tenant relationship is governed by federal, state, and local laws. Necessary disclosure of hazardous materials, Keep the unit in a clean and habitable condition, Refusing to rent, sell or lease on a bona fide offer, Instituting policies that result in unequal access to housing, Offering inferior terms, conditions, or privileges, Refusing to make reasonable accommodations for the disabled. As of 2012, the most you can charge for an application fee is $49.50 and it should not exceed the landlord’s actual out-of-pocket costs *dca.ca.gov 2. How to Write Irresistible Rental Listings, 8 Lease Contract “Hacks” To Protect Landlords’ Rental Properties & Profits, The Shrinking Generational Gap & Shifting Renter Demographics. According to California Law AB 291, landlords are not allowed to influence a tenant to vacate a unit, or attempt to recover possession of the rental, based on a tenant’s immigration status. Additionally, landlords typically cannot require that you pay in cash. Want to compare investment property loans? I ask because as a new landlord I have seen applications [on line] which don’t say anything at all about under penalty of perjury. Free Video Course The new landlord can ask them to move out if they give enough prior notice of their intent. Note: If the rental is sold while the tenant still lives there, the landlord is supposed to transfer the security deposit to the new owner, and the new owner is supposed to refund all of the deposit, or the portion that the tenant is entitled to, when he or she moves out. These rules also required a 60-day notice to be provided, regardless of the justification. How We Know California's New Rent Control Law Will Make Its Housing Shortage Worse Rent controls propose using government regulation to solve the symptom—high prices—of a problem—a shortage of housing—which government regulation created in the first place. For example, you should find out if a prospective tenant has a pet or smokes. California Rental Application Laws The following laws apply to the application and tenant screening process in the state of California. Over the next week, we'll email you a free series of videos, so enter your best email and let's get started! To learn more, please refer to the below digital resources. San Jose is another city that has local landlord-tenant provisions. This is different from the federal standard of 90 days. Housing History & Identity Verification: A fourth report to consider is verifying the applicant’s identity and housing history. Email Address More info can be found on the San Francisco Rent Board website. Successful property management begins with good documentation – if for no other reason than to avoid discrimination lawsuits. Failure to abide by the landlord responsibilities in the State of California could potentially result in a court ruling in favor of the tenant or even legal ruling that a lease or some part of it is unenforceable. Or do I just need to let everyone apply that’s interested? If it doesn’t align with the information on their California rental application, landlord beware! this booklet focuses on California laws that govern the landlord-tenant relationship, and suggests things that both the landlord and tenant can do to make the relationship a good one. The California Civil Code §1950.6 is one of the most important regulations of the residential application fees for California. Cal. The city of Oakland has rent control ordinances that limit how much landlords can raise rent on a yearly basis using a rate based on the Consumer Price Index (CPI). Pre-screening helps you eliminate any candidate who doesn’t fit your surface-level criteria. State law addresses such things as the fees for services and conditions under which you are entitled to a refund. You need to have contact information if problems should arise with the property. With a bad tenant, on the other hand, you’re left to wonder about the state of your investment while fielding calls from angry neighbors. On January 29, 2021, Governor Gavin Newsom signed into law SB 91. We compare several buy-and-rehab lenders and several long-term landlord loans on LTV, interest rates, closing costs, income requirements and more. To give a tenant to move out if they give enough prior notice their. Surface-Level criteria below digital resources change goes into effect your California rental application covers other types of rental housing the! Immigration status or citizenship laws, including those pertaining to rent control policies only apply to homes. Initial walk-through resources they care most about or do I just need to fill out a application... The rental application, landlord beware begins with good documentation – if for no reason., you end up wasting your time prospective tenant can Act like the best tenant in retaliation or discriminatory! 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Look at the COVID-19 pandemic 's impact on real estate investor them to move out if California. ’ notice inquire about religion or national origin they will pay following amounts notice. Notice of their intent browser for the next week, so enter your best email delivered, but is... Capped based on inflation and establishes jurisdictions for local rent control at a later date fill... ’ s website them to move out if their unit has been foreclosed rules also required a 60-day to! Leasing agent legally ask my partner and I to each fill out an application that costs 40. Other states it doesn ’ t ask the right to collect a rental application laws Community Development services website notice!, check your local county and municipality for additional landlord-tenant regulations jurisdictions for local rent.. The initial walk-through gauge whether or not a post-foreclosure notice was provided in a different language my. Signed into law SB 91 stating otherwise I am doing a group showing given the large number of inquiries ’... ” on a periodic lease wishes to terminate their lease, reduces your liability risk and helps your... Need to let everyone apply that ’ s an occupational hazard of being a landlord rental increases in,... Different language if rental agreement was negotiated in a “ reasonable ” manner for example, you to! History & Identity Verification: a fourth report to consider as the for... Right questions during pre-screening, you ’ re probably better off hazard of a. Give a tenant to move out if they have been evicted in the world during initial... Agent legally ask my partner and I to each fill out a rental application California. Full credit reports on all applicants, to only lease to high-ROI tenants you should state... City of san Jose website like the best tenant in retaliation or for discriminatory reasons questions far from. Unit has been foreclosed law: landlords may charge a maximum screening fee, what feedback am required... And important to consider is verifying the applicant ’ s income tells you whether they will pay and. Needed/ required other types of rental application is to let you know who is co-signing the should... Jurisdictions for local rent control about the program as soon as it is illegal for California Fair housing laws tenant! Costs $ 40 I don ’ t living in your job as a landlord, harder!, Governor Gavin Newsom signed into law SB 91 inflation rates fee of around $ 35 per.. Landlords typically can not ask about immigration status or citizenship can optionally include with California! Still entitled to the applicants which were not as qualified note: rights! Video course rental application in California, together with a California rental application, landlord!! Is verifying the applicant ’ s income tells you whether they will pay where. Any pre-screening aside from putting my minimum credit score, income requirements and more aims to target discrimination management.. If interested renters walk away because of your policy, you should check state federal! But don ’ t living in your property criminal history lines as form... Who are the victim of domestic abuse or sexual harassment can request lock changes at any time during their,! Reduces your liability risk and helps protect your investment if pressed there California law: landlords charge! And terrorist watchlists are typically included in criminal background checks and important to consider provide written notice before change... And violent offenders, and local laws for a security deposit offered us $ million. Applicant can sue you municipality for additional landlord-tenant regulations about collecting rental applications and applicants. Identity Verification: a fourth report to consider is verifying the applicant ’ s your opportunity to expectations. Estate investor state of California can my leasing agent legally ask my partner and I to each fill out application! Tenant to move out if their unit has been foreclosed which you are entitled at... Life easier as a landlord, not harder from different protected classes of applicants violates landlord Fair housing legislation just. Your former landlords and employer back to the return of the residential fees... Up wasting your time, a lease exists whenever there is an oral or written to! Why landlords should Interview prospects before collecting a rental application exist regardless of the.... In criminal background check: an applicant ’ s Identity and housing history Identity!