BPOA's Application Process Forms: When and How to Use Them

This article walks you through the correct use of BPOA’s three key forms during the rental application process, what they’re for, when to use them, and how they help you stay compliant with California law and federal Fair Credit Reporting Act (FCRA) requirements. Whether you’re screening one tenant or twenty, these forms help document your process and reduce legal risk.

1. Receipt for Application & Screening Fee

When to Use

Use this form every time you collect a screening fee, including from guarantors and co-signers.

What It Does

The form documents:

• The amount of the fee

• The services covered (e.g., credit check, background check)

• The date and method of collection

• The applicant’s name

• The rental unit applied for

Why It’s Required

Under California Civil Code § 1950.6(d), landlords must provide applicants with an itemized receipt whether or not the applicant requests it. The law requires transparency, and failure to issue a proper receipt can lead to disputes or legal exposure.

Best Practice

Emailing the receipt is allowed if the applicant consents. Keep a copy for your records.

2. Notice of Adverse Action to Rental Application

When to Use

Use this form any time you reject an applicant based in whole or in part on information in a consumer report, such as:

• Credit report

• Eviction or criminal background

• References or other consumer screening data

This includes situations where the applicant is not selected, even if others were more qualified.

What It Does

The form satisfies your obligation under the federal Fair Credit Reporting Act (FCRA) to:

• Notify the applicant that their rental application was denied

• Disclose the name, address, and phone number of the credit reporting agency used

• Inform them of their right to obtain a free copy of the report and dispute inaccuracies

Why It’s Required

Failing to issue an Adverse Action Notice can result in legal penalties and open the door to discrimination claims. If you screen someone and deny them based on that information, you must notify them properly.

Best Practice

Deliver the notice by mail or email with consent. Do not give the credit report itself to anyone other than the subject of the report.

3. Offer to Rent

When to Use

Use this form only when you’ve selected an applicant and want to formally reserve the unit before the lease is ready, typically when the unit is still occupied, undergoing repairs, or the applicant needs time to finalize logistics (like co-signers or scheduling).

What It Does

The Offer to Rent:

• Confirms the applicant has been selected

• Allows you to accept a holding deposit

• Outlines how the deposit will be applied (e.g., toward rent or security deposit)

• Includes language protecting you from lost rental damages if the applicant backs out

• Formally takes the unit off the market while the lease is finalized

Once signed by both parties, this form documents the applicant's intent to rent and your agreement to reserve the unit.

When Not to Use It

Do not use this form if:

• You are ready to issue the lease immediately

• You don’t plan to collect any funds until lease signing

• You want to continue marketing the unit or accept backup applications

Signing an Offer to Rent signals to all parties that the unit is off the market and no longer available for rent. If you want to preserve flexibility, skip this step.

Best Practice

Use the Offer to Rent strategically, only when it helps bridge the gap between selection and lease. Do not treat it as a default part of the screening process.

Final Thoughts

Each of these forms plays a specific role in a legally compliant and fair rental application process. Used together, they help you:

• Comply with California Civil Code § 1950.6

• Meet your obligations under the Fair Credit Reporting Act

• Avoid disputes by documenting your decisions

Whether or not you charge a screening fee, it’s also a best practice to provide applicants and guarantors with a copy of their credit report if you use one, and to always issue an Adverse Action Notice when denying based on screening results.

Disclaimer: This article is for educational purposes only and does not constitute legal advice. For help evaluating your application process, please consult qualified legal counsel.