How to Screen Tenants in California: A Complete Legal Guide for Landlords

Tenant screening is the single most important decision a California landlord makes. Choose well, and you'll enjoy years of on-time rent payments and property care. Choose poorly, and you're facing potential evictions, property damage, and thousands in lost income.

But California's extensive tenant protection laws make screening more complex than in other states. One misstep can result in fair housing complaints, lawsuits, or regulatory penalties. This guide walks you through legal tenant screening in California—what you can ask, what you can't, and how to identify quality tenants while staying compliant.

California's Fair Housing Framework

Before reviewing a single application, understand the legal landscape. California has some of the nation's strongest fair housing protections, and they directly impact how you screen tenants.

Protected Classes in California

Federal fair housing law prohibits discrimination based on race, color, national origin, religion, sex, familial status, and disability. California expands these protections significantly. Under the California Fair Employment and Housing Act (FEHA), you cannot discriminate based on:

• Race, color, ancestry, or national origin
• Religion or religious dress
• Sex, gender, gender identity, or gender expression
• Sexual orientation
• Marital status
• Familial status (families with children)
• Disability (physical or mental)
• Medical condition
• Age
• Source of income (including Section 8 vouchers)
• Genetic information
• Military or veteran status

Source of income protection is particularly important—California landlords cannot automatically reject applicants because they use housing vouchers or other government assistance. You can still apply the same income and screening criteria, but voucher status alone cannot disqualify an applicant.

Consistent Screening Criteria

The key to legal tenant screening is consistency. Before advertising a vacancy, establish your screening criteria in writing. Apply these criteria identically to every applicant. Document your process.

Inconsistent screening—even unintentional—creates legal exposure. If you accept one tenant with a 620 credit score but reject another with similar qualifications, you risk claims of discrimination based on protected characteristics. Written criteria protect both you and your applicants.

Setting Your Screening Criteria

Effective screening criteria balance selectivity with legal compliance. Here's how to establish standards that identify quality tenants without creating liability.

Income Requirements

Income verification is the foundation of tenant screening. Most landlords require gross monthly income of 2.5 to 3 times the monthly rent. For a $2,500 rental, that means gross income of $6,250 to $7,500 per month.

Document acceptable income sources: W-2 employment, self-employment, retirement income, investment income, alimony, child support (if consistent), and government assistance including housing vouchers. Remember—you cannot reject applicants solely because their income comes from government programs.

For self-employed applicants, request two years of tax returns rather than pay stubs. Look for consistent income patterns and verify with bank statements showing regular deposits.

Credit Score Thresholds

Credit scores provide insight into payment history and financial responsibility. Most landlords set minimum thresholds between 600 and 680, though requirements vary by market and property type.

Consider the full credit picture, not just the score. An applicant with a 640 score due to medical debt may be more reliable than one with a 680 score showing missed rent payments. Look for patterns specifically relevant to rental reliability: utility payments, previous landlord collections, and payment consistency over time.

California landlords should note that using credit scores alone can create disparate impact on protected classes. Combine credit evaluation with other factors for a comprehensive assessment.

Rental History Standards

Past behavior predicts future performance. Rental history reveals whether applicants pay on time, maintain properties, and leave responsibly.

Request contact information for the last 2-3 landlords. Current landlord references can be unreliable—a landlord eager to remove a problem tenant may provide glowing reviews. Previous landlords have less incentive to mislead.

Key questions for landlord references:

• Were rent payments consistently on time?
• Did the tenant provide proper notice before moving?
• Was the property left in good condition?
• Were there any lease violations?
• Would you rent to this tenant again?

Document all reference responses. Inconsistencies between application information and landlord feedback warrant further investigation.

Employment Verification

Verify employment through direct contact with employers. Request recent pay stubs (last 30-60 days) and verify employment dates, position, and income with HR or supervisors.

For new employees, an offer letter stating position, start date, and salary provides verification. Be cautious with probationary employees—their employment is less stable.

The Application Process

A thorough application collects the information needed for comprehensive screening while maintaining compliance.

Required Disclosures

California requires specific disclosures before collecting application fees. You must provide:

• Your screening criteria in writing
• The names of current applicants being considered (number of applicants)
• Information about how the screening fee will be used

These disclosures help applicants make informed decisions about whether to apply. An applicant who doesn't meet your criteria can save the application fee rather than applying unsuccessfully.

Application Fees

California caps application screening fees. As of 2024, the maximum fee is approximately $60 per applicant, adjusted annually based on the Consumer Price Index. Check current limits before charging—exceeding the cap violates state law.

Application fees can only cover actual screening costs: credit reports, background checks, and processing time. You cannot profit from application fees. If your actual costs are lower than the maximum allowed, charge only what you spend.

Refund unused portions of application fees if you don't complete screening. If you accept another applicant before running reports, return the unspent portion promptly.

Application Contents

A comprehensive rental application should collect:

• Full legal name and all names used previously
• Date of birth (for background check purposes only)
• Social Security number (for credit check authorization)
• Current and previous addresses (last 3-5 years)
• Current and previous landlord contact information
• Employment information and supervisor contacts
• Income documentation requirements
• Personal and professional references
• Vehicle information (license plate, make, model)
• Pet information if applicable
• Emergency contact

Include signed authorization for credit and background checks. Without written authorization, running these reports violates federal law.

Running Background Checks

Background checks reveal information beyond credit history. Understanding what you can consider—and what you can't—protects you from liability.

Criminal History Considerations

California restricts how landlords use criminal records in screening. You cannot apply blanket bans on applicants with criminal histories. Instead, conduct individualized assessments considering:

• Nature of the offense and its relationship to rental housing
• Time elapsed since the offense
• Evidence of rehabilitation
• Age at time of offense

Drug manufacturing convictions directly relate to property damage risk. A decades-old non-violent offense may not predict rental behavior. Consider each situation individually.

Never consider arrests that didn't result in convictions. Only convictions—not arrests—can factor into rental decisions. This distinction is crucial for fair housing compliance.

Eviction Records

California limits how landlords use eviction records. Under AB 2819, you cannot consider eviction records from cases that:

• Were dismissed
• Resulted in judgment for the tenant
• Are sealed by court order

Even for completed evictions resulting in landlord judgments, consider context. Evictions during 2020-2021 may reflect pandemic hardship rather than tenant quality. A single eviction from a decade ago carries different weight than multiple recent evictions.

Using Screening Services

Third-party screening services streamline background checks but require careful selection. Choose FCRA-compliant services that provide accurate, up-to-date information.

Reputable screening services include:

• TransUnion SmartMove
• MyRental (CoreLogic)
• RentPrep
• TurboTenant
• Apartments.com screening

Verify that your chosen service updates records regularly. Outdated criminal records can lead to wrongful rejections and potential liability.

Evaluating Applications

With screening data collected, evaluate applicants systematically against your established criteria.

Red Flags to Watch

Certain patterns suggest higher risk:

• Frequent moves: Multiple moves within short periods may indicate evictions, lease violations, or difficulty maintaining housing
• Gaps in rental history: Unexplained periods without housing warrant investigation—where did they live?
• Inconsistent information: Discrepancies between application, references, and verification suggest dishonesty
• Unverifiable references: Landlords who can't be reached or verified may be fictional
• Pressure for quick decisions: Applicants pushing to bypass screening may be avoiding scrutiny
• Cash-only income: Difficulty verifying income creates uncertainty about payment ability

Red flags don't automatically disqualify applicants but warrant additional investigation. Ask follow-up questions and request additional documentation when needed.

Positive Indicators

Quality applicants demonstrate:

• Stable employment: Long tenure with current employer suggests reliability
• Positive landlord references: Glowing reviews from previous landlords predict success
• Income well above minimums: Applicants earning significantly more than required minimums have financial cushion
• Clean credit history: Consistent on-time payments across all accounts
• Professional communication: Responsive, organized applicants often make responsible tenants

Making the Decision

Apply your criteria consistently to all applicants. Document your evaluation process. If rejecting an applicant, identify specific criteria they failed to meet—not protected characteristics.

First-come, first-served evaluation (accepting the first qualified applicant) provides legal protection. Holding applications to compare multiple candidates creates opportunity for claims that you selected based on protected characteristics.

Adverse Action Requirements

When you reject an applicant based on credit report or background check information, federal law requires specific disclosures.

Required Notices

The Fair Credit Reporting Act (FCRA) requires adverse action notices when you:

• Reject an application
• Require a co-signer based on screening results
• Require a higher deposit based on screening results
• Offer less favorable terms based on screening results

Your adverse action notice must include:

• The name, address, and phone number of the screening service used
• Statement that the screening service didn't make the decision
• Notice of the applicant's right to dispute accuracy
• Notice of the applicant's right to a free copy of their report

Provide this notice promptly after making your decision. Many screening services provide template adverse action letters—use them.

Special Situations

Some applicants require modified screening approaches while maintaining fair housing compliance.

Section 8 and Housing Voucher Applicants

California's source of income protections require landlords to consider voucher applicants. You cannot reject applicants solely because they receive housing assistance.

Apply the same screening criteria to voucher applicants as all others. For income verification, combine the voucher payment amount with the tenant's portion to assess total payment ability. If a voucher covers $2,000 of a $2,500 rent and the tenant earns $1,500 monthly, their effective income-to-rent ratio is strong.

You can still reject voucher applicants who fail other criteria—credit requirements, rental history standards, or background check concerns. Document that rejection was based on these factors, not voucher status.

First-Time Renters

Applicants without rental history—recent graduates, people leaving family homes, or those transitioning from homeownership—lack landlord references. Adjust your approach:

• Request personal and professional references
• Verify employment history and stability
• Consider requiring a co-signer with established rental history
• Weight credit history more heavily

Don't automatically reject first-time renters—doing so could discriminate against younger applicants (age is protected in California) or those from cultures where multi-generational living is common (national origin discrimination).

Self-Employed Applicants

Self-employment complicates income verification but doesn't indicate risk. Request:

• Two years of tax returns
• Bank statements showing consistent deposits
• Business license or registration
• CPA letter confirming income if available

Self-employed applicants may show lower taxable income than actual earnings due to business deductions. Bank statements help verify cash flow beyond tax return figures.

Documentation and Record Keeping

Thorough documentation protects against fair housing claims and provides evidence of consistent screening.

What to Keep

Maintain records for all applicants—accepted and rejected:

• Complete rental application
• Signed authorization forms
• Credit reports and background checks
• Reference check notes
• Income verification documents
• Written evaluation against criteria
• Adverse action notices (if applicable)
• Communication records

Retention Requirements

Keep application records for at least four years—the statute of limitations for fair housing claims. Store documents securely; applications contain sensitive personal information requiring protection.

Common Screening Mistakes

Avoid these frequent errors that create legal exposure or result in poor tenant selection:

Illegal Questions

Never ask about:

• Religion or religious practices
• National origin or citizenship status (beyond legal right to be in the US)
• Plans to have children
• Disability beyond accommodation needs
• Sexual orientation or gender identity
• Marital status (beyond listing all adult occupants)

Train anyone conducting showings to avoid casual conversation about protected topics. "Do you have kids?" or "Where are you from originally?" can become evidence in discrimination claims.

Inconsistent Application

The most common screening error: applying criteria inconsistently. Accepting one tenant with a 610 credit score while rejecting another with identical qualifications invites legal challenges.

Document every decision. Note specific criteria met or failed. If you make exceptions, document the business reason unrelated to protected characteristics.

Relying on Gut Feelings

Intuition incorporates unconscious bias. An applicant may "feel" unreliable because they differ from tenants you've had positive experiences with—often correlating with protected characteristics.

Base decisions on objective criteria. If something concerns you, identify what specifically: verifiable facts you can document, not feelings you can't explain.

Why Professional Screening Matters

Quality tenant screening takes significant time and expertise. Many landlords underestimate the complexity—and the risk of errors.

Professional property managers screen tenants daily. They understand evolving California regulations, maintain compliant processes, and document decisions thoroughly. Their experience identifying red flags and evaluating applications reduces the risk of problem tenants.

For Placer County landlords, local expertise adds value. Understanding area rental markets—what tenants expect, what rents the market supports, which applicant profiles succeed—comes from managing properties here daily.

Consider whether your time and risk tolerance justify self-screening, or whether professional management provides better protection for your investment.