Landlords in San Diego can charge apartment application fees, and they do. The problem is that California has some pretty strict laws for how much they can ask for. Competition for rentals in San Diego has become out of control, with landlords receiving around 24 applications for every apartment that becomes available. Those fees can start to pile up when you apply to multiple places, and that’s why you need to know what landlords can legally charge you.
California law says that screening fees have to match what the landlord actually spends on background checks and credit reports. The maximum right now in San Diego is $65.37 as of 2025. Even with that cap in place, most applicants are still paying somewhere between $40 and $80 every time they submit an application, and I’ve heard from renters who have applied to ten or more properties before they found a place. A new law was finalized on January 1, 2025, that changed the game completely. After that date, landlords can’t charge these fees at all unless they have a real vacancy and they’re actually reviewing applications.
San Diego decided to create its own Tenant Protection Ordinance, and it sits on top of the existing state regulations that were already in place. This happened back in June 2023. One of the big changes is that landlords now have to share their screening criteria with you before they can accept any application fees or deposits. The city has also put a hard cap on security deposits at just one month’s rent, and landlords can only increase rent twice per year at most. The city has been cracking down on violations, too. There’s even new legislation in the works that would make it so landlords have to refund application fees to every applicant they turn down. These regulations just continue to get tighter and tighter for property owners.
We need to dig into what these regulations actually mean for renters and landlords. Landlords can legally charge certain fees, but some practices cross the line into illegal territory. Renters and landlords need to manage screening costs as they stay on the right side of the law.
Here’s what landlords can legally charge for apartment applications in San Diego!
California Laws That Keep Application Fees Low
California has pretty strict laws that regulate what landlords are allowed to charge applicants who want to rent an apartment. State law limits landlords to only the actual costs that they incur for credit reports and background checks when they process your application. Landlords can’t turn your application fee into a profit center.
Application fees usually run somewhere between $30 and $50 at most properties – it’s a fair amount because it covers what these services actually cost. The law deliberately prevents landlords from inflating these fees or turning applications into a way to generate extra income on the side. What a lot of renters aren’t aware of is that you actually have the right to request receipts for these charges. Your landlord also has to give you the paperwork that shows where your application fee went if you ask for it.
California didn’t always have these protections for renters. The state had to step in with these laws after landlords figured out they’d take in high application fees from dozens of applicants all competing for the same apartment. Some would walk away with thousands of dollars in their pockets before they’d finally pick one tenant. Everyone else was out of their application money and still scrambling to find a place during an already stressful search.
The California Civil Code describes these requirements in a lot of detail. The courts throughout the state have usually upheld these laws over the years when landlords have tried to find loopholes or creative workarounds. The Attorney General’s office has even issued guidance that shows application fees have to directly correspond to the landlord’s actual costs. These protections matter most when the rental market heats up and available units start disappearing. Landlords could exploit renters who need a place to live quickly if we didn’t have these laws.
California saw what could happen and put these regulations in place to stop it. Every landlord across the state has to follow the exact same laws, and it doesn’t matter if they own one rental property or manage hundreds of units throughout California.
San Diego’s Extra Rules for Rental Benefits
San Diego has actually taken California’s application fee laws and built on top of them with extra protections for renters in the area. The city passed something called the Tenant Right to Know Act a while back, and it was designed to make the entire rental process more transparent for everyone involved. This particular law says that landlords have to tell you what their screening criteria are before they can even take any application fees from you.
Landlords have to tell you what income level they expect from tenants, and they need to share the credit score range that they’re after, too. The background check process that they use also has to be laid out for you in advance. The same goes for any other criteria they consider when they choose who gets the apartment. The law says they have to give you all this information ahead of time, and that means they have to do this well before you pay them any application fees or deposits.
The city rolled out enforcement for these particular laws back in 2017, and they’ve kept at it pretty steadily since then. Any landlord who breaks these laws could get hit with hefty penalties, and they have to return every penny of the fees that they wrongly charged to prospective tenants.
Rent-controlled properties in San Diego sometimes have even stricter requirements than the standard ones. Many of these older buildings are subject to extra laws that can limit what landlords are allowed to charge for different fees and deposits. These particular properties usually have tenant advocacy groups nearby that can help you understand your rights as a renter.
Cities actually have plenty of power to create these extra protections for their residents. The state law sets the minimum baseline for everyone. San Diego’s city council saw that the renters in their area needed more protection than what the state was giving. The council recognized that too many renters were in vulnerable positions and needed better protection from predatory practices.
Landlords in San Diego can still charge application fees to prospective tenants. But they have to follow quite a few more requirements if they want to do it legally now. Landlords do have legitimate costs that they need to cover during the application process, and the law does understand that reality.
Fair Costs That Build Application Fees
Credit reports usually run somewhere between $15 and $30. Criminal background checks are a bit cheaper and usually cost anywhere from $10 to $25. The exact price depends on the service your landlord decides to use for screening. Some of these services are more expensive because they pull data from more sources or provide more detailed reports than the simpler options.
This next part really matters to renters. Landlords have to charge you the exact amount that they pay for these services. They can’t round up just to make the math easier or pocket the difference. If that credit check costs them $18.50, then $18.50 is what you should see on your application fee.
Administrative fees are another area where the situation can get a little murky. Landlords are allowed to charge for administrative work as long as it directly relates to the way they process your application. Employment verification and reference calls are legitimate charges because somebody has to spend time on those tasks. What they can’t do is add random fees for their general office operations or overhead costs that have nothing to do with your application.
Every landlord has their own preferred screening service, and prices vary quite a bit between them. Some landlords go with simple online services that keep costs down. Others work with professional property management firms that cost more money but also give them more detailed tenant reports – that’s why you might pay $20 at one apartment building and $45 at another. Either of these fees can be legitimate as long as the landlord is only charging what they actually paid.
Rental Fees That Are Against the Law
Rental application fees in San Diego can be a minefield, and plenty of landlords try to charge tenants money that they have no legal right to ask for. Understanding what’s legal and what isn’t could save you hundreds of dollars during your apartment search.
Landlords can’t charge you money just to let you tour a property, regardless of any excuse they come up with or how they try to spin it. It’s illegal to charge for a simple tour. Application fees and holding deposits are two separate items. Landlords who try to mix them up or pretend they’re the same are breaking the law.
California law is actually very simple about application fees. Landlords can only charge for their out-of-pocket costs. A $20 credit check can’t magically turn into a $75 fee just because the landlord wants extra cash. But plenty of property managers still charge every applicant the exact same inflated amount – even though their costs can vary quite a bit depending on the background services that they use for each person.
This next scam appears all the time, and it’s frustrating. A landlord will advertise one available unit and then take application fees from forty or fifty different applicants. They already know who they want to rent to, or maybe they’ve already promised it to somebody else. Those other applicants are just free money to them. It’s unethical and it directly violates California’s good faith requirements, and a few tenants have won cases against landlords who pull this trick.
Any application fee over $50 should make you suspicious right away. Payment requests before you’ve even seen the inside of a unit are another big warning sign. And watch out for vague “processing” charges that are supposedly non-refundable. None of these practices are legal.
State regulators have also stepped up enforcement, and landlords are finally getting hit with consequences for illegal fees. It’s time for that to happen.
Creative Options That Save You Money
Landlords who want to skip the application fees have actually developed quite a few creative ways that work really well for everyone.
The smartest landlords I’ve seen will just waive the fee for applicants who obviously meet all their requirements. Lots of property owners will also refund the fee when you sign the lease, and it makes perfect sense. Why would they hold onto the money from a tenant who’s about to pay them rent every month for the next year?
Lots of landlords have started accepting credit reports that applicants already have on hand. If you pulled your credit report last Tuesday for a different apartment application, most landlords will happily accept that same report as long as it’s recent and legitimate. You don’t want to pay for the same credit reports three or four times in the same week.
Property owners in the same area sometimes team up and share the cost of background checks. A group of landlords can split one report between them, and it really cuts down on what each applicant has to pay. Everyone still gets the information they need, but the financial burden gets spread around.
Some landlords only charge their first pick for the apartment. Everyone else submits their application for free. Applicants love it because they’re not throwing away money on apartments that might already have stronger candidates lined up. The landlord still covers their screening costs without collecting fees from thirty different applicants.
A handful of landlords roll those screening costs right into the monthly rent. Yes, your rent could increase by $10 or $15 each month. But at least you can apply without needing extra cash upfront. You’ll find pros and cons to weigh with it, though.
When you’re ready to fill out any rental application, ask the landlord how they handle the fees. You’ll want to know what the fee covers, whether they’ll accept existing credit reports and whether qualified applicants can get the fee waived completely.
Maximize Your San Diego Rental Property
Application fees in San Diego can be confusing, and most renters don’t know what they should or shouldn’t be paying. These fees are legal, and landlords are allowed to charge them. But California regulators watch the whole process pretty closely to protect renters from being ripped off. Landlords can only charge you for what the background check and credit report actually cost them. Usually, we’re talking about $30 to $50 total. San Diego has even stricter requirements than the rest of California. Landlords in our city have to show you where every penny of that application fee goes and give renters much more protection than just the state laws would.
Renters who know what’s legal won’t get stuck paying fees they shouldn’t have to pay. Landlords who follow the requirements won’t get hit with fines and penalties that can seriously hurt their business. My advice for renters is to always get a receipt and ask the landlord to break down what the fee covers specifically. Landlords need to keep detailed records of their screening costs. You want to be able to back up each dollar that you charge with documentation.
Rental laws change frequently, and the requirements that apply this year could be different by next year. For renters about to pay a deposit or landlords ready to receive application fees, take a few minutes first to verify what the latest requirements actually are. The rental market works much better when tenants have a solid sense of what to expect and landlords run their businesses in line with the law.
At Palm Tree Properties, we’ve built our reputation on transparency, and we always do right by property owners and tenants alike. We guide property owners through all of the requirements that are out there, and we help them get the most out of their investments without any corner-cutting or games. Some clients need help with application fee compliance, and others want an honest assessment of what their property could earn in the market. And plenty of owners just want to stay on top of San Diego real estate patterns as they evolve and change. We can help with everything.
If you want to find out what your property is actually worth, request your free rental property evaluation and check out our resources for more property management tips and information. We’re excited to work with you!
