The California Senate voted overwhelmingly Monday, Aug. 22, to support a bill allowing renters to purchase their own reusable credit reports and submit them to multiple landlords rather than paying over and over for a credit check when applying to lease an apartment or home.
However, the Senate amended the bill in June making it optional for landlords to accept a renter’s tenant screening report, said Mike Blount, chief of staff for the bill’s author, Assemblymember Christopher Ward, D-San Diego. The bill now goes back to the Assembly for concurrence on the Senate amendment.
Under the Senate version, landlords would still have the right to order credit and background checks from their own provider, charging an application fee to cover those costs. Landlords who accept a tenant’s reusable report won’t be able to charge any application fees.
The Assembly has until the end of August, when the current legislative session ends, to accept the Senate amendment.
Ward had said he sponsored the bill to rein in rental search costs. With apartment vacancies at a 22-year low, renters must apply over and over again in their search for a new home, costing hundreds of dollars in application fees, he said.
“Sometimes there can be 30 or more applicants for one unit,” Ward said. “You have to go around and apply to 10 or 12 units to try to get lucky and be able to secure the right to lease that unit.”
Looking for an apartment? That will be $400 in application fees, please
Under Assembly Bill 2559, renters can order their own tenant screening report that includes a credit check, employment verification and seven-year eviction history.
To ensure the report is current, it will only be good for 30 days. And to ensure it’s tamper-free, the landlord could access it directly from a third-party provider.
Most landlords now require background checks to make sure they’re leasing their properties to a reliable renter with a reputation for paying bills on time and who doesn’t have a criminal history or past bankruptcies.
The fees often are charged up front as a condition for applying for a rental.
California law caps application and tenant screening fees at $55.58 – an amount that increases annually based on inflation.
But landlords only are allowed to charge enough to cover their reasonable time and actual costs for performing background checks. Tenants are entitled to a copy of the screening and credit report and are entitled to a refund for any amount paid over the landlord’s actual costs.
The state Assembly is expected to concur with the Senate changes, Blount said. Once it acts, the measure would go to Gov. Gavin Newsom for his signature.
The bill is similar to laws now on the books in the states of Washington and Maryland.
