Tenancy: applications and security deposits.

(1) Existing law regulates the terms and conditions of residential tenancies, including authorizing a landlord to elect to accept reusable tenant screening reports, as specified, and prohibiting a landlord who accepts a reusable tenant screening report from charging a fee to access the report or an application screening fee. Existing law defines a reusable tenant screening report to mean a consumer report that meets specified criteria, including that it was prepared within the previous 30 days by a consumer reporting agency at the request and expense of an applicant. This bill would, instead, require a landlord to accept a reusable tenant screening report if an applicant has and elects to provide a reusable tenant screening report. The bill would authorize a landlord to charge an application screening fee to cover the costs of obtaining information about the applicant if the applicant does not have or elect to provide a reusable tenant screening report. The bill would revise the above-described criteria in the definition of a reusable tenant screening report to include a consumer report that was prepared within the previous 30 days by a consumer reporting agency at the request and expense of, or on behalf of, an applicant. The bill would specify that a reusable tenant screening report includes a copy of a consumer credit report provided pursuant to specified provisions if the consumer credit report meets certain criteria, as described below. (2) Existing law authorizes a landlord to hold security for any tenant who is a party to the lease or agreement, subject to specified requirements. Existing law defines security as any payment, fee, deposit, or charge that is imposed, as specified, to reimburse the landlord for costs associated with processing a new tenant or that is imposed as an advance payment of rent, used for any purpose. Existing law authorizes a landlord to claim any of the security in the amount reasonably necessary for the above-described purposes. Existing law requires the landlord to, among other things, return any remaining portion of the security to the tenant. This bill would require a landlord to, within 30 days of receiving a tenant's security, deposit the sum into an account of a bank or other financial institution regulated by the state or federal government, subject to specified requirements, including that, if the security is deposited into an interest-bearing account, any balance originating from the security that remains in the account after reimbursement to the landlord as described above, including interest accrued on that balance less any estimated taxes, is payable to the tenant, as specified. (3) Existing law authorizes a landlord or their agent to charge an applicant an application screening fee, as defined, to cover the costs of obtaining information about the applicant, including personal reference checks and consumer credit reports, as specified, when they receive a request to rent a residential property from an applicant. Existing law requires the landlord to return any amount of the screening fee that is not used for the above-described purposes if the landlord or their agent does not perform a personal reference check or does not obtain a consumer report. Existing law also requires a landlord or their agent to provide a copy of a consumer credit report obtained to the applicant who is the subject of that report if the applicant paid an application screening fee and the applicant requests a copy of the consumer credit report. This bill would require the landlord to return any amount of the screening fee within 21 days of when the fee was collected if, among other things, the landlord does not select the applicant for tenancy or if the fee collected exceeds the above-described amount. The bill would, instead, require a landlord or their agent to, within 2 business days of obtaining a consumer credit report and any other relevant information on the applicant, as described, provide a copy of the consumer credit report, as specified, and the relevant information to the applicant who is the subject of the report and information, as specified. (4) The bill would require a landlord to include in all tenancy application forms clear provisions that notify prospective applicants of various requirements imposed by the bill's provisions, including the reusable tenant screening report policy described above.