Raintree Property Management | Blog

Tenant Screening in California: Stay Compliant and Avoid Risk

Written by Raintree PM | May 26, 2025

If you own a rental property in Carlsbad, Encinitas, San Marcos, or anywhere in North County San Diego, one of the most important parts of your leasing process is also one of the riskiest: tenant screening. Done correctly, it protects your investment and helps you find responsible tenants. Done wrong, it opens the door to legal claims, financial losses, and stress.

Let me introduce you to Brian, a new landlord in San Marcos. He listed his rental and got several promising applicants. One stood out: great income, solid credit, polite communication. But after a few back-and-forth emails, Brian chose someone else who he felt was a “better fit.” He sent a short email to let the first applicant know.

What he didn’t realize? That simple email and his lack of documentation landed him in hot water. A few weeks later, Brian received a notice from the California Civil Rights Department. The applicant claimed housing discrimination, and Brian couldn’t prove otherwise. He had no written criteria, no clear process, and no records showing equal treatment of all applicants.

Here’s how to avoid Brian’s mistake and protect yourself.

Step 1: Define Your Screening Criteria in Writing

Before you even list your rental, you need to define your screening standards. This ensures consistency, compliance with fair housing laws, and a faster decision process. Your criteria should include:

  • Minimum credit score
  • Income-to-rent ratio (usually 2.5 to 3 times the monthly rent)
  • Rental history requirements (no prior evictions, good references)
  • Pet policy (allowed or not, and any breed/weight restrictions)
  • Criminal background standards (if used, these must be narrowly tailored and relevant)

Put these in writing and post them with your listing or rental requirements page. Applicants should know up front what it takes to qualify.

Step 2: Apply the Same Standards to Every Applicant

Consistency isn’t just good practice it’s the law. California and federal fair housing laws require that every applicant is treated equally, regardless of personal background, appearance, or communication style.

This means no exceptions for someone who seems nice, and no extra steps for someone who “feels off.” You must:

  • Use the same application
  • Run the same background checks
  • Score each applicant using the same standards

Even if you plan to reject someone, complete the full screening and document the reason. If you're ever challenged, your consistent process and clear documentation will be your best defense.

Step 3: Avoid Questions About Protected Characteristics

It’s illegal to ask about or use protected characteristics in your tenant selection process. In California, protected characteristics include:

  • Race or color
  • Religion
  • Sex or gender identity
  • National origin
  • Disability (physical or mental)
  • Familial status (e.g. whether they have children)
  • Marital status
  • Sexual orientation
  • Source of income (such as housing vouchers)

Never ask about these topics, even casually. And never mention them when explaining why you selected or rejected an applicant. Even well-intentioned comments can be misinterpreted.

Example: Telling someone you “prefer a quiet single professional” could be seen as discrimination against families or couples. Stick to the facts income, credit, rental history.

Step 4: Document Everything

Documentation is your legal protection. Keep a written record of:

  • Your posted rental requirements
  • All completed applications
  • Screening reports (credit, criminal, eviction, income)
  • Notes on your decision-making process
  • Copies of any communication with applicants
  • The final decision (accepted, denied, or waitlisted)

These records should be kept for at least three years, in case of a fair housing complaint or audit.

Even if you’re using a leasing agent or property manager, make sure they’re following a documented process and giving you access to the records.

What We Do at Raintree Property Management

At Raintree Property Management, our screening process is designed for compliance, efficiency, and quality. We screen every applicant using the same documented system:

  • Credit score minimums
  • Income verification (pay stubs, bank statements, tax returns)
  • Nationwide eviction and criminal background checks
  • Rental history verification
  • Pet policy screening

We don’t cut corners. We don’t skip steps. And we never make gut-based decisions. It’s why we’ve never had a discrimination complaint and why we consistently place high-quality tenants that stay longer and pay on time.

Our clients don’t have to worry about compliance handle it for them.

Want Help Creating a Compliant Screening Process?

If you’re a DIY landlord and want to set up your own system, you can visit our website and use our published rental requirements as a template. It’s free and easy to customize.

If you’d rather avoid the risk and stress altogether, we offer full leasing and management services. Click the link below to request a free rental analysis. We’ll show you:

  • How your rent compares to similar properties in North County San Diego
  • What tenants are looking for right now
  • How our screening process protects your investment

Let us handle the compliance, while you enjoy the benefits of owning rental property