Happy Saturday Housing Heroes,

Get ready, because starting January 1, 2025, California’s AB 2493 will change how housing Providers handle their rental application process and screening fees. Let me break this down for you.

Key Changes Under AB 2493

AB 2493 requires housing providers to follow one of two structured approaches when charging and processing application fees:

Option 1: First Come, First Qualified, First Approved

• Strict Order Processing: Applications must be reviewed in the order received—no skipping, prioritizing, or cherry-picking.
• Rental Criteria Upfront: Provide written rental criteria to every applicant alongside their application form. This ensures transparency about qualifications like credit scores, income thresholds, and rental history requirements.
• Fair Evaluation Standards: Assess all applicants based only on predetermined and documented criteria, reducing the risk of discrimination claims or favoritism.

➡️ Tip: Audit your current processes to ensure applications are timestamped, documented, and processed sequentially. Train your team to follow these protocols without exceptions.

Option 2: Refundable Application Fees

• Flexible Fee Collection: Application fees may still be charged, but refunds must be issued to unselected applicants within:
  • 7 days after the selected tenant is notified, or
  • 30 days from the application submission date—whichever comes first.
• Refunds Regardless of Rejection Reason: Refunds apply to any applicant not chosen, regardless of whether they failed to meet criteria or withdrew voluntarily.
• Proof of Refunds: Maintain records of refunds to verify compliance in case of audits or disputes.

➡️ Tip: Set up a refund system to process payments quickly and track refund timelines. Test your process to avoid errors or delays. If you need support with this, feel free to schedule a call with my team.​

AB 2493 adds a mandatory timeline for providing applicants with copies of their consumer credit reports:

• Standard Rule: Provide credit reports within 7 days of receiving them—no requests needed.
• Accelerated Requests: If an applicant specifically requests a report under the Investigative Consumer Reporting Agencies Act (ICRAA), deliver it within 3 days of the request.

➡️ Tip: Partner with screening vendors that can automate credit report distribution. Ensure all communication methods (email or mail) are secure and compliant with privacy laws.

Immediate Action Steps You Should Take

1. Audit Current Processes
   • Review application fee policies and tenant screening workflows for compliance gaps.
   • Update application forms to include clear rental criteria and fee disclosures.
2. Choose a Compliance Pathway:
   • Implement either the First Come, First Qualified process or set up a refund system for fees.
3. Document Everything:
   • Keep records of application timestamps, criteria communication, and refund receipts for at least three years in case of disputes or audits.

More content below 👇

🎥 Watch My 60-Second Video Breakdown of AB 2493 and Download our Guide​

Get A Free Rental Analysis Are you wondering how to pinpoint the perfect rental price for your property? Setting the right rate isn’t just about covering your expenses, it’s about maximizing your investment while staying competitive in the market. Get my Free Report

Don’t wait until the last minute—start reviewing your policies and implementing changes now. If you have any questions, please feel free to reply to this email.

Steve Welty CEO @ Good Life Property Management DRE #01744610 ​​​​

5252 Balboa Ave #704, San Diego, California 92117
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