Reusable Tenant Screening Reports, AB 2559
- California
- In Effect: January 1, 2023
TL;DR:
California’s AB 2559 enables tenants to use a reusable tenant screening report to apply to rental properties who have opted in. Under this law, consumer reports can be reused for multiple applications so long as the report is within 30 days of purchasing.
What it is:
AB 2559 redefines an existing consumer report ordered on a prospective tenant by the landlord whose property they’re applying to rent as a reusable tenant screening report.
What it means:
An applicant’s report can be reused for the application process within 30 days of purchasing. While the initial cost of obtaining the report from a consumer reporting agency is at the request and expense of the applicant, the option for reuse comes at no additional cost to the landlord or applicant, and the landlord is prohibited from charging an application fee to access or view the report. The furnished report must comply with all state and federal laws pertaining to the use and disclosure of information used in the tenant screening process and must include all specified information as outlined, including, but not limited to:
- full legal name,
- verification of employment and income,
- previous addresses and last known address,
- the results of a housing record history check consistent to applicable law related to housing record history,
- any records that may exist of the applicant’s criminal history,
- or more.
The landlord must opt in if they decide to accept a reusable tenant screening report. Opting in is not a requirement for the tenant screening process.
Whom it affects:
Rental Owners Who Opt-In
While accepting reusable tenant screening reports is entirely optional, landlords and property managers who opt in will be affected the most by this law with faster report processing times.
Californian Renters
Californian renters who wish to reuse their prior tenant screening report will not need to pay for multiple, separate tenant screening fees.
- First and foremost, the acceptance of a reusable tenant screening report by the landlord is entirely optional, and the landlord must be opted in if proceeding with a reusable tenant screening report. Opting in is not a requirement for the tenant screening process.
- Use of a reusable tenant screening report expedites the tenant screening and application process if the applicant is applying to multiple properties and mitigates the expense of the tenant paying multiple fees per property applied for.
- While the initial cost of obtaining the report from a consumer reporting agency is at the request and expense of the applicant, the option for reuse comes at no additional cost to the landlord or applicant, and the landlord is prohibited from charging an application fee to access or view the report.
- The 30-day reuse period allows for the most up-to-date and current information on the applicant if the timeframe is exceeded while the applicant is still applying to properties. This also gives agency and incentive to the applicant to complete the process in a timely manner.
- Reusable tenant screening reports must still contain all prescribed information required for the application, the same as any consumer report ordered for the purposes of renting a property.
- It can be ascertained that a byproduct of prohibiting the charge of additional fees by a landlord who traditionally imposes an application/processing fee to cover any additional expenses other than the cost of obtaining the report means forfeiting the landlord’s autonomy to impose such a fee, and that additional cash flow as well. Landlords who opt-in will need to amend their screening process to remove said fees.
- Section F of the bill also asserts that if an ordinance, resolution, regulation, administrative action, initiative, or other policy adopted by a city, county, or city and county conflicts with this section, the policy that provides greater protections to applicants shall apply. In some cities and counties, these local laws can prohibit rental owners from considering their applicant’s criminal report, even if it’s on a reusable report.
Resources:
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