CA Rental Application Fees: How Much?

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 screening fee in California for 2026 is $65.86 per applicant, adjusted annually each January by the Consumer Price Index under Civil Code §1950.6. Even with that cap in place, most applicants are still paying somewhere between $40 and $80 every time they submit an application, and renters who apply to ten or more properties before finding a place are not uncommon. It’s important to understand that $65.86 is the absolute ceiling - a landlord can never legally charge more than their actual out-of-pocket screening costs, even if that amount falls below the cap.

A significant change came with AB 2493, which took effect in 2025 and tightened the rules around when and how screening fees can be charged. Under AB 2493, landlords are prohibited from charging an application fee at all unless a genuine vacancy exists and they are actively reviewing applications. The law also tightened refund rules, strengthening protections for applicants who are turned down or whose applications are never meaningfully reviewed.

San Diego has its own Tenant Protection Ordinance that sits on top of existing state regulations. Enacted in June 2023, the ordinance requires landlords to share their screening criteria with you before they can accept any application fees or deposits. Under California’s AB 12, which took effect July 1, 2024, security deposits statewide are capped at one month’s rent - a rule that directly applies here in San Diego. The city also limits landlords to no more than two rent increases per year, and enforcement of violations has become increasingly active. These regulations continue to get tighter and tighter for property owners.

It’s worth digging 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 alike need to understand their rights and obligations as they navigate the screening process and 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. Under California Civil Code § 1950.6, landlords are limited to only the actual costs they incur for credit reports and background checks when processing your application. Landlords can’t turn your application fee into a profit center.

For 2026, the maximum allowable screening fee is $65.86 per applicant, adjusted annually each January based on changes to the Consumer Price Index (CPI). That said, the cap is a ceiling - not an automatic charge. A landlord can never charge more than their actual out-of-pocket screening costs, even if those costs fall well below $65.86. Application fees at most properties typically run somewhere between $30 and $50 for this exact reason. 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 could take in high application fees from dozens of applicants all competing for the same apartment. Some would walk away with thousands of dollars before finally picking one tenant. Everyone else was out of their application money and still scrambling to find a place during an already stressful search.

The legislature has continued tightening these rules over time. A notable recent update is AB 2493, a 2025 amendment that added two important protections. First, landlords are now prohibited from charging a screening fee at all when no actual vacancy exists. Second, the refund rules were tightened - landlords who collect a fee and fail to process the application in good faith face stricter obligations to return the money. These changes closed loopholes that had allowed some landlords to collect fees speculatively without any real intention of filling a unit.

Courts throughout California have generally upheld these laws over the years when landlords have tried to find loopholes or creative workarounds. The Attorney General’s office has also issued guidance making clear that application fees must directly correspond to the landlord’s actual costs. These protections matter most when the rental market heats up and available units start disappearing - without them, landlords could exploit renters who need a place to live quickly.

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. The $65.86 cap will be revisited again in January 2027 when the next CPI adjustment takes effect.

Renters in San Diego have a few additional layers of protection worth knowing about. The city’s Tenant Right to Know ordinance requires landlords to have just cause before terminating a tenancy, adding stability beyond what state law provides. San Diego also caps security deposits at one month’s rent - consistent with the statewide limit introduced by AB 12, which took effect July 1, 2024 - and limits how frequently rents can be increased to no more than twice per year for covered units. If you’re renting in San Diego, these local rules stack on top of state protections and give you meaningful additional rights throughout the application process and beyond.

San Diego’s Extra Rules for Rental Benefits

San Diego has 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, 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.

San Diego has also kept pace with statewide reforms under AB 2493, the 2025 amendment to California Civil Code §1950.6 that added two significant tenant protections on top of the existing fee cap. First, landlords are now prohibited from charging any application fee at all when no actual vacancy exists - a practice that had long been a source of frustration for renters submitting fees for units that were never genuinely available. Second, AB 2493 tightened the rules around refunds, requiring landlords to return fees more promptly and under clearer circumstances when the screening process doesn’t proceed as expected.

On the fee cap itself, California Civil Code §1950.6 sets a statewide maximum that is adjusted every January based on changes to the Consumer Price Index. For 2026, that cap sits at $65.86 per applicant. It’s worth understanding what that number actually means in practice: $65.86 is the ceiling, but a landlord can never legally charge more than their actual out-of-pocket screening costs - whichever figure is lower. If a credit and background check only costs the landlord $40, that’s the most they can pass on to you, regardless of the $65.86 cap.

San Diego renters benefit from a few additional local layers of protection worth knowing about. Under rules tied to the city’s renter protections, security deposits for most residential rentals in San Diego are subject to California’s statewide cap - which was tightened significantly when AB 12 took effect on July 1, 2024, limiting deposits to just one month’s rent for most tenants. Rent-stabilized properties in San Diego are also subject to limits on how frequently landlords can raise rents, generally capped at twice per year, which adds another layer of financial predictability for long-term renters.

Rent-stabilized properties in San Diego sometimes have even stricter requirements than standard ones. Many of these older buildings are subject to extra rules 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 have plenty of power to create these extra protections for their residents. State law sets the minimum baseline for everyone, and San Diego’s city council recognized that renters in their area needed more protection than what the state alone was providing. The council saw that too many renters were in vulnerable positions and needed better protection from predatory practices - and the combination of local rules, the Tenant Right to Know Act, and updated state law under AB 2493 reflects that ongoing commitment.

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. They cannot charge you when no genuine vacancy exists. They cannot charge more than their real screening costs, even if that number falls below the $65.86 annual cap. And they have to be upfront about their criteria before collecting a single dollar from you. The law does recognize that landlords have legitimate costs to cover - it simply requires that those costs be real, documented, and disclosed honestly.

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. And under AB 2493, the 2025 amendment to Civil Code §1950.6, landlords are prohibited from charging any screening fee at all when no vacancy actually exists - a rule that closed a loophole that had long frustrated applicants.

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. Regardless of what their actual costs are, however, no landlord in California can charge more than $65.86 per applicant in 2026. That is the current cap under Civil Code §1950.6, adjusted each January using the Consumer Price Index. Even if their real screening costs somehow exceeded that number, $65.86 is the hard ceiling - but keep in mind the law works both ways. If their actual out-of-pocket costs are lower than $65.86, they can only charge what they genuinely spent. AB 2493 also tightened refund rules, so if a landlord collects a fee and fails to follow through properly, they face stricter obligations to return it than they did before.

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. Under Civil Code §1950.6, landlords can only charge for their actual out-of-pocket screening costs - and never more than the state’s annual cap. For 2026, that cap is $65.86 per applicant, adjusted each January based on the Consumer Price Index. But that ceiling doesn’t mean every landlord gets to automatically pocket $65.86. If their real cost for running a credit and background check is $30, that’s all they can charge. A $30 credit check can’t magically turn into a $65 fee just because the landlord wants extra cash. But plenty of property managers still charge every applicant the exact same inflated flat rate - even though their actual screening costs can vary quite a bit depending on the background check services they use.

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. Assembly Bill 2493, passed in 2025, tightened the rules even further: landlords are now explicitly prohibited from charging any application fee when no actual vacancy exists, and the refund rules have been strengthened so tenants have a clearer path to getting their money back when a landlord violates the law. A few tenants had already won cases against landlords who pulled the no-vacancy trick before AB 2493 passed - now the legal footing for those claims is even stronger.

Any application fee over $65.86 - the 2026 CPI-adjusted maximum - should raise an immediate red flag. 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.

San Diego renters have additional protections worth knowing. The city’s Tenant Right to Know Ordinance adds local just-cause eviction protections on top of state law. Under AB 12, which took effect July 1, 2024, security deposits statewide are capped at one month’s rent for most residential tenants - a significant change that directly benefits San Diego renters facing some of the highest rents in the country. Rent increases for properties covered under San Diego’s local ordinance are also limited to twice per year, giving tenants more stability and predictability.

State regulators have also stepped up enforcement, and landlords are finally getting hit with real consequences for illegal fees. Between the stronger AB 2493 refund rules, the annually adjusted $65.86 cap for 2026, and local San Diego protections, tenants today have more tools than ever to push back. Know your rights before you hand over a single dollar.

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?

It’s also worth knowing that under California Civil Code §1950.6, landlords are prohibited from charging a screening fee when no actual vacancy exists - a protection that was tightened by AB 2493 in 2025. That same law also strengthened refund rules, so if a landlord collects a fee and doesn’t screen you, they’re required to return it promptly. The maximum application fee is $65.86 per applicant for 2026, adjusted each January based on CPI - but remember, landlords can never charge more than their actual out-of-pocket screening costs, even if that amount is below the cap.

Lots of landlords have started accepting credit reports that applicants already have on hand. If you pulled your credit report last week 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 report 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.

If you’re renting in San Diego specifically, there are a few additional protections worth knowing about. The Tenant Right to Know Ordinance gives renters added stability, security deposits are subject to local caps on top of the statewide AB 12 limit of one month’s rent for most tenants, and landlords are restricted to twice-yearly rent increases. These local rules can work in your favor when negotiating or evaluating a rental.

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, whether a vacancy actually exists before they collect any money, and whether qualified applicants can get the fee waived completely.

FAQ

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.

Under California Civil Code §1950.6, the maximum rental application screening fee is $65.86 per applicant for 2026, adjusted each January based on changes to the Consumer Price Index. That said, the cap is a ceiling, not a standard charge - landlords may never collect more than their actual, documented out-of-pocket screening costs, even if those costs fall well below $65.86. If a background check and credit report only run $35, that’s the most a landlord can charge.

A significant update also took effect through AB 2493, a 2025 amendment that added important tenant protections around application fees. Under AB 2493, landlords are prohibited from charging a screening fee when no genuine vacancy exists at the time of the application. The law also tightened refund rules, making it easier for applicants to recover fees paid when those conditions aren’t properly met. San Diego renters should be aware of these protections and ask upfront whether a unit is actually available before paying any application fee.

San Diego goes beyond state law in several additional ways. The city’s Tenant Right to Know Ordinance requires landlords to provide just cause for evictions in most situations, offering renters a layer of stability that state law alone doesn’t guarantee. On security deposits, California’s Assembly Bill 12, which took effect July 1, 2024, limits deposits to one month’s rent for most residential rentals, a major shift from prior law that allowed up to two months. San Diego also limits how frequently rents can be increased for covered properties, generally capping landlords at two rent increases per year, keeping increases more predictable for long-term tenants.

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. Our advice for renters is to always get a receipt and ask the landlord to break down exactly what the fee covers. Landlords need to keep detailed records of their actual screening costs, ready to back up every dollar they charge with clear documentation. And under AB 2493, landlords need to be especially careful not to collect fees when no vacancy is genuinely on the table.

Rental laws change frequently, and the requirements that apply this year could be different by next year. The $65.86 cap for 2026 will be revisited again in January 2027 based on the latest CPI data. For renters about to pay a deposit or landlords ready to receive application fees, take a few minutes first to verify what the current 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, including the updated 2026 screening fee cap and AB 2493’s newer restrictions. 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!

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