Bills Seek to Limit Rental Application Fees and Provide Notice on Rent Increases

On Tuesday, Assemblymember Laurie Davies introduced two bills in her 2023 Housing Affordability legislative packages.

The bills are meant to protect working tenants and families by capping “outrageous rental application fees” to just $40 and to require a minimum of 90-days’ notice for any rent increase.

Per AB 485:

AB 485, as introduced, Davies. Tenancy: application screening fee.

Existing law regulates the hiring of real property and imposes various requirements on landlords relating to the application for, and leasing of, residential rental property, including prohibiting the imposition of an application screening fee greater than the cost of gathering information concerning the applicant, or the cost of using a tenant screening service or a consumer credit reporting service. Existing law specifies that in no case shall the application screening fee charged by the landlord or their agent be greater than $30 and authorizes the fee to be adjusted annually by the landlord or their agent commensurate with an increase in the Consumer Price Index, as specified.

This bill would increase the maximum application screening fee that may be charged by a landlord or their agent to $40 and would remove the authorization for the fee to be adjusted annually. The bill would specify that any additional moneys deposited into a state housing assistance program pursuant to that provision are available upon appropriation. The bill would also make other nonsubstantive changes to these provisions.

Per AB 500:

AB 500, as introduced, Davies. Rent increases: noticing.

Existing law requires a landlord of a residential dwelling to give notice at least a specified number of days, either 30 or 90, before the effective date of the change based upon the percentage increase in the amount of rent charged to the tenant at any time during the 12 months before the effective date of the increase, either in and of itself or when combined with any other rent increases for the 12 months before the effective date of the increase. Existing law also specifies that if the proposed rent increase for a tenant is caused by a change in a tenant’s income or family composition as determined by a recertification required by statute or regulation, the notice of the rent increase shall be delivered at least 30 days before the effective date.

This bill would instead require that notice of a proposed rent increase of any percentage be delivered at least 90 days before the effective date of the increase.

Assemblywoman Laurie Davies represents the 74th Assembly District, which includes the communities of southern Orange County, including Dana Point, Laguna Niguel, San Clemente, and San Juan Capistrano plus the communities of northern San Diego County, including Camp Pendleton, Oceanside and Vista.