VIDEO: Locking It Down: How to Master New Laws on Security Deposits & Applications

Clarification Regarding Screening Fee Refunds

We want to offer a brief clarification to one point discussed during the webinar. There was some disagreement during the presentation regarding the refund requirements when selecting a tenant from a pool of applicants who each paid a screening fee.

Under California Civil Code § 1950.6(c)(2)(B), if you use a screening process that allows you to select your preferred tenant from a group of applicants, you must refund the full screening fee to any applicant not selected, regardless of whether they met your screening criteria.

“An application screening process in which the landlord or their agent returns the entire screening fee to any applicant who is not selected for tenancy, regardless of the reason, within 7 days of selecting an applicant for tenancy or 30 days of when the application was submitted, whichever occurs first.”

This clarification is provided to ensure full compliance with state law.

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