California Rental Application Fees

Anthony A. Luna • September 5, 2024

Understanding California Rental Application Fees

A Guide for Tenants and Property Management Companies

Navigating the rental market in California involves various fees and regulations, one of the most common being the rental application fee. Whether you're a tenant or part of a property management team, understanding these fees is crucial to ensuring a smooth rental process. This guide covers everything you need to know about California rental application fees and how they impact both tenants and property management companies.


What Are California Rental Application Fees?

In California, a rental application fee is charged by a landlord or property management company when a prospective tenant applies to rent a property. This fee typically covers the costs associated with processing the application, including credit checks, background checks, and verification of employment and rental history.


How Much Can Property Management Companies Charge for Application Fees?

Under California Civil Code Section 1950.6, as of 2024, the maximum a landlord or property management company can charge for a rental application fee is $63.70. This fee is adjusted annually based on changes in the Consumer Price Index (CPI) to reflect economic conditions.


What Does the Application Fee Cover?

The rental application fee should cover the actual costs incurred by the property management team during the tenant screening process. Typically, this includes:

  • Credit Reports: A comprehensive credit report is essential for evaluating a tenant’s financial responsibility and is often the most significant part of the fee.
  • Background Checks: These checks might include criminal records, eviction history, and other public records that help the property management company assess the applicant’s suitability.
  • Employment Verification: Verifying a tenant’s employment and income ensures they can afford the rent and maintain payments over time.
  • Rental History Verification: Contacting previous landlords helps the real property management team gauge the applicant's reliability as a tenant.


When Should the Fee Be Paid?

Tenants are required to pay the rental application fee when they submit their application. It’s important to note that this fee is typically non-refundable, even if the tenant is not selected for the property. Therefore, tenants should only apply to properties they are genuinely interested in renting.


Legal Requirements for Property Management Companies in California

  1. Transparent Fee Disclosure
    Landlords and property management companies must provide a detailed receipt itemizing the rental application fee. This transparency is crucial in ensuring that tenants know exactly what they are paying for.
  2. Limiting Applications
    A property management company should not collect more application fees than there are available units. For instance, if only one unit is available, accepting application fees from ten applicants is not permissible.
  3. Refund Policy
    If the property management company or landlord does not use the entire fee for the intended purposes, such as deciding not to run a background check, the unused portion must be refunded to the applicant.
  4. Compliance with Fair Housing Laws
    All applicants must be treated equally during the screening process. The fee structure and application procedures must comply with California’s fair housing laws, ensuring no discrimination based on race, gender, religion, or other protected characteristics.


Tips for Property Management Companies & Property Owners

  • Adhere to Legal Limits: Ensure you charge the correct amount as regulated by California law. Overcharging can lead to legal issues and harm your reputation.
  • Practice Transparency: Provide clear and detailed information to applicants about what the fee covers. This builds trust and avoids potential disputes.


Why Choose Coastline Equity for Property Management in California?

At Coastline Equity, we pride ourselves on transparency, fairness, and compliance with California’s rental laws. As one of the leading property management companies in Gardena and across California, we ensure that our rental application process is straightforward and fair for all applicants. Our commitment to best practices sets us apart from other property management companies near you, making us the preferred choice for landlords and tenants alike.


Contact Coastline Equity today to learn more about how we can help manage your rental property effectively and legally.


Related Searches:

  • Pathlight Property Management: While Pathlight Property Management operates across various regions, Coastline Equity focuses on providing top-notch, locally-tailored property management services in California.
  • Real Property Management: At Coastline Equity, we understand the complexities of real property management and offer a comprehensive suite of services to meet the needs of both landlords and tenants.
  • Property Management Near Me: If you’re searching for reliable property management companies near you in Gardena or other parts of California, Coastline Equity is your trusted partner in managing your rental property efficiently.


Frequently Asked Questions

Q: How do I find the best property management company near me?
A: Look for companies with a proven track record, positive reviews, and compliance with local laws. Coastline Equity is known for its transparency and expertise in property management across California.


Q: What services do property management companies in California offer?
A: Services typically include tenant screening, rent collection, maintenance, legal compliance, and more. Coastline Equity offers comprehensive services tailored to your property’s needs.

Let's elevate the industry together—share this blog with fellow investors.

A property owner studying a detailed roadmap as a guide.
By Anthony A. Luna January 7, 2025
Discover how property owners and investors can turn the 2025 property management regulations into opportunities for growth, tenant retention, and long-term success. Learn key updates and actionable strategies today.
A close-up of a credit card fee form, symbolizing transparency
By Anthony A. Luna December 5, 2024
Learn how California's AB 2493 improves transparency in rental application fees. Discover what landlords need to do to comply and enhance trust with applicants.
A service member in uniform saluting, symbolizing the protections and fee limits
By Anthony A. Luna December 4, 2024
Discover how California's SB 611 protects service members by limiting rental fees and enhancing compliance with the Servicemembers Civil Relief Act (SCRA). Learn your rights and responsibilities.
A property manager reviewing a paper copy of a credit report
By Anthony A. Luna December 3, 2024
Learn how California's AB 2747 requires landlords to offer rent payment reporting to credit bureaus. Discover the benefits, compliance steps, and impact on property management.
Show More

More about Coastline Equity

  • Property Management Services

    Skyscraper

    Our team will handle all your property needs, offering specialized services such as in-depth inspections, liability management, staff recruitment and training, and round-the-clock maintenance—expert support tailored to the unique requirements of your real estate assets.

    Learn More
  • About Us

    Look at the future of property management

    Our dedicated team transforms property management challenges into opportunities. From tenant management to streamlined rent collection and proactive maintenance. 

    Learn More
  • Property Management Excellence

    Anthony A Luna CEO

    As a contributing author for Forbes, Anthony A. Luna brings a wealth of expertise and knowledge in the property management industry, real estate sector, and entrepreneurship, providing insights and thought-provoking analysis on a range of topics including property management, industry innovation, and leadership.


    Anthony has established himself as a leading voice in the business community. Through his contributions to Forbes, Anthony is set to publish his first book, "Property Management Excellence" in April 2025 with Forbes Books.

    Learn More
  • Insights

    Discover property management

    Learn more about Coastline Equity's property management practices & processes and how we support our clients with education and a growth mindset.


    Coastline Equity Property Management is your partner as you continue to learn and grow.

    Learn More

News & Updates

By John David Sarmiento April 11, 2025
Setting the right rent isn’t just about earning income — it’s about finding the balance between maximizing cash flow and keeping your property consistently occupied. So, what exactly is fair rent for your property? Whether you're renting out a single-family home, an apartment, or a unit in a multi-family building, finding a fair rental price starts with a thoughtful look at your property, your market, and what today’s renters are willing to pay. Start with Comparable Rentals The best way to find a fair rent is to research comparable rentals in your area. Look for listings similar in: Square footage Number of bedrooms and bathrooms Neighborhood Condition and amenities Platforms like Zillow, Apartments.com, or Rent.com are a great place to browse rental listings and compare active prices. If you’re seeing similar units listed at a higher rate than yours — and they're still on the market weeks later — that could be a sign they’re overpriced. Units that rent fast tell you what renters are actually willing to pay. Real Example: Pricing a 2-Bedroom in Long Beach Let’s say you own a 2-bedroom, 1-bath apartment in Long Beach with around 900 square feet. You check listings and find similar properties renting for $2,300 to $2,500. Zillow shows a rent zestimate of $2,400 — a decent starting point, but not the full picture. After looking at how long listings have stayed active and talking to a local property manager , you find out that well-maintained units with in-unit laundry and parking are consistently getting rented at $2,350. You price your unit accordingly, giving yourself a competitive edge while still earning market value. Avoid Relying on Algorithms Alone Automated pricing tools like the rent zestimate are useful for a ballpark figure, but they often miss local demand shifts, recent upgrades, or what renters truly value in your neighborhood. Use them as one data point — not your final decision-maker. Other Factors That Influence Fair Rent Your final rent amount should reflect more than just comps. Consider: The property’s condition: Have you renovated or upgraded appliances recently? Extras included: Are you covering any utilities? Is there secure parking or outdoor space? Seasonality: Rental demand can vary throughout the year. Your goals: Are you focused on fast occupancy or maximizing revenue? Professional support: A trusted rental manager or property manager can offer current insights based on tenant activity, vacancy rates, and pricing trends.  How Property Managers Help You Set the Right Price If you're unsure what to charge, a local property manager can evaluate your unit, compare it to others in your area, and recommend a pricing strategy that balances demand and return. They also help adjust your price over time as rental rates shift, and they’ll guide you in attracting and retaining quality tenants who value both the price and the property. Final Thoughts So, what is fair rent for your property? It’s the price that matches what your unit offers, reflects the current market, and appeals to qualified renters. It’s not necessarily the highest number possible — it’s the one that helps you rent quickly, reduce turnover, and maintain steady income. With a little research, a realistic view of your property’s features, and guidance from local experts, you’ll be well-positioned to price your rental right — and keep it occupied with great tenants.
By John David Sarmiento April 10, 2025
One of the most delicate parts of owning a rental property is figuring out how to increase the rent without driving away good tenants. While you want to stay competitive with market rates , it’s equally important to maintain stable occupancy and avoid costly turnovers. The good news? With the right strategy and timing, raising rent doesn’t have to come at the cost of your tenant relationships. 1. Know Your Local Market Rates Before you decide to raise the rent , research similar properties in your area to understand current rent prices . If you're significantly below market value, a reasonable increase is often accepted — especially by tenants who like where they live. Even if you're close to market rate, a small adjustment can still make sense if you’re offering added value like upgraded amenities, responsive maintenance, or flexible lease terms. 2. Time It Around Lease Renewals The best time to increase the rental rate is when a tenant is renewing the lease . This gives them the chance to consider the new rate and evaluate their options — all while avoiding the hassle and cost of moving. Be sure to send a formal rent increase notice with enough lead time, typically 30 to 60 days in advance, depending on local regulations. 3. Communicate the “Why” Clearly When increasing rent, communication is everything. Let your tenants know the reasons behind the increase: Rising property taxes or insurance Increases in maintenance or utility costs Alignment with market rates Planned improvements to the unit or building Even if they don’t love the change, most tenants are more receptive when they feel respected and informed. 4. Offer Options and Flexibility If you’re working with long-term tenants you’d like to keep, consider offering choices to soften the increase: Extend the lease at the current rate for a few more months Offer a discounted rate for early renewal Split the increase over two payments instead of one lump sum This approach shows that you're not just looking to raise the rent , but to build a fair and lasting relationship. 5. Lean on Your Property Manager (If You Have One) Experienced property managers can provide insight into local rent prices , craft professional communications, and help navigate lease renewals in a way that keeps tenants happy while protecting your bottom line. They can also deliver rent increase notices and handle pushback more objectively. If you manage your property on your own, consider consulting a manager or local expert before finalizing your approach. Final Thoughts Increasing the rental rate is a normal part of owning a rental property , but it should always be done with care and intention. When you base your decisions on market research, communicate transparently, and give tenants room to respond, you’re more likely to keep good renters in place — even at a higher price point.  Want help reviewing your current lease structure or market position before you raise the rent? We’re here to support you.
By John David Sarmiento April 9, 2025
Finding the right tenant is one of the most important things you’ll do as a property owner. The right renter can mean steady income, fewer problems, and long-term stability — while the wrong one can lead to missed rent, damage, or legal headaches. So how do you actually find great tenants for your rental property? Here's a clear, step-by-step approach that works — whether you're a new landlord or a seasoned investor. 1. Write a Clear, Honest Rental Listing Start by crafting a listing that highlights what makes your property attractive, but also sets clear expectations. Good property descriptions should include: Rental price and lease length Number of bedrooms and bathrooms Location and amenities Any restrictions (pets, smoking, etc.) Post your listing on multiple rental listing sites — but don’t underestimate the power of rent signs in front of the property, especially if it's in a high-traffic area. 2. Market Where Your Ideal Tenants Are To reach more prospective tenants , take your marketing beyond listing sites. Post your property on social media , community groups, and even local forums. Word of mouth can also be powerful — let friends, colleagues, and neighbors know the unit is available. Make sure your contact information is easy to find and consistent across platforms. You want prospective renters to reach you quickly when interest is high. 3. Use a Standard Rental Application When potential tenants reach out, have a standard rental application ready to go. This not only helps you stay organized, but ensures you’re collecting all the info you’ll need for the next step — tenant screenings . A good application should request: Full name and contact details Employment and income information References and previous landlord contacts Authorization for a background check and credit score pull 4. Screen Tenants Thoroughly (and Legally) One of the most critical steps in finding good tenants is how you screen tenants . Don’t skip this part — it’s where most rental issues can be avoided. Effective tenant screenings usually include: Background check (criminal history, eviction records) Credit score and payment history Verification of employment and income Reference checks with their previous landlord Always follow housing laws when screening applicants. Be consistent, fair, and avoid any language or decisions that could be considered discriminatory under the Fair Housing Act. 5. Collect a Security Deposit and Finalize the Lease Once you’ve found a great tenant , collect a security deposit (within the limits set by your state), and have both parties sign a clear, legally binding lease agreement . Your lease should detail rent amounts, due dates, responsibilities, and procedures for repairs or disputes. If you're not sure how to draft one, consult with a landlord or property manager familiar with local rental laws. Final Thoughts Finding the right tenant takes more than just putting up a listing — it takes a clear strategy, legal awareness, and the ability to evaluate prospective tenants fairly and confidently. The effort you put in now saves time, money, and stress later.  If you're unsure or simply want to ensure a smooth process, working with a professional property management company can make tenant placement and lease compliance much easier.
More Posts

Property Management Made Easy


Los Angeles

1411 W. 190th St.,
Suite 225

Los Angeles, CA 90248

Temecula

41743 Enterprise Circle N.,
Suite 207

Temecula, CA 92590