New! California’s 2026 Rental Application Refund Mandates under AB 2493

Assembly Bill (AB) 2493, which took effect last year, introduced significant changes to how California landlords manage application fees and screening processes.

Key refund mandates and requirements under AB 2493 include:

1. Mandatory Refund Scenarios

Landlords must refund the unused portion of application screening fees to applicants who are not selected. 

Unsuccessful Applicants: If a landlord charges a fee but does not select the applicant, the fee must be refunded, even if the applicant was rejected for not meeting criteria.

No Screening Performed: If no background or credit check was conducted, any unused portion of the fee must be returned.

Withdrawal: The law applies even if the applicant withdraws their application by choice. 

2. Refund Timelines

If a landlord is not using a "first-come, first-qualified" approach, they must refund the fee within the following, whichever is sooner: 

Within 7 days of a tenant being selected.

Within 30 days of the application being received. 

3. Key Exceptions and "First-Qualified" Rules

Landlords can avoid the constant refunding process by using one of two methods: 

First-Come, First-Qualified: If landlords process applications in the order received, provide written screening criteria up front, and accept the first qualified applicant, they can avoid refunding fees to applicants who are denied for not meeting criteria.

Reusable Tenant Screening Reports: If a landlord accepts a reusable report, they cannot charge an application fee, eliminating the need for a refund. 

4. Additional 2025/2026 Mandates

Itemized Receipts: Landlords must provide an itemized receipt detailing the exact cost of the screening (e.g., credit report, background check).

Fee Caps: In 2025, the maximum application fee was roughly $65, adjusted annually based on the Consumer Price Index (CPI).

No Profit Allowed: Fees must only cover actual out-of-pocket screening costs.

Transparency: Landlords must disclose screening criteria in writing at the time of application.

Credit Reports: Landlords must provide applicants with a copy of their credit report within 7 days of receiving it. 

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