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Published July 25, 2026
A statewide, plain language guide to California's CRD fair chance housing regulations for self-managing owners running their own tenant screening.
If you self-manage and you're running your own background checks, California's fair chance housing regulations apply to you no matter which city your property sits in. The state's Civil Rights Department (CRD) rule, in effect since January 1, 2020, bans blanket "no felons" policies and requires an individualized look at any conviction before you can deny someone. This is separate from any city specific ordinance.
A few South Bay cities, like Gardena, layer their own local fair chance language on top of state law. If your property is in one of those cities, the local rule adds process on top of what's below. But the CRD regulation itself, adopted under the Fair Employment and Housing Act (FEHA) at 2 CCR §§ 12264 to 12271, applies to every rental in the state, city ordinance or not. If you self-manage anywhere in California, this is the floor you're working from.
Certain categories of criminal history are off the table entirely, regardless of how relevant they might seem. Under 2 CCR § 12269, you cannot seek, ask about, or take adverse action based on:
If a screening report surfaces any of these, you're required to disregard them. An applicant can still choose to bring up one of these items themselves as mitigating context, and you're allowed to consider it if they do, but you cannot go looking for it or hold it against them if you find it another way.
You cannot advertise or maintain a policy that excludes every applicant with any criminal record. CRD guidance is explicit that statements like "no felons" or "we don't allow criminals" are unlawful, whether they show up in a listing, an application form, or something a leasing agent says out loud during a showing. The rule requires an individualized assessment of each relevant conviction instead of a categorical rule that screens everyone with a record out automatically.
If a conviction survives the exclusions above, you can only use it to deny an applicant if it's directly related to a legitimate, nondiscriminatory concern, generally framed as the person's ability to be a good tenant or a threat to the health, safety, or property of others. 2 CCR § 12266 lays out what an individualized assessment needs to weigh, including:
Before you can deny based on a conviction, you're required to give the applicant written notice and a real opportunity to present mitigating information, in writing or in person, before the decision is final. Practically, that means don't send a denial the moment a report comes back. Give the applicant a chance to explain first, and actually weigh what they tell you.
For a self-managing owner running your own checks, the safest sequence looks like this. Verify income, credit, and rental history first, and only pull or review criminal history after those other qualifications check out. That sequencing matters for two reasons: it keeps a criminal record from becoming the deciding factor when an applicant might not have qualified financially anyway, and it shows, if you're ever asked, that criminal history wasn't the first or only thing you looked at. If you're using a third party consumer reporting agency for the background check, you also have separate notice obligations under the federal Fair Credit Reporting Act whenever you take an adverse action based on that report, on top of the CRD steps above.
Can I still deny someone with a very serious or recent conviction?
Yes, if it's directly related to a legitimate safety or tenancy concern and you've done the individualized assessment above, including giving the applicant a chance to respond. The rule doesn't require you to rent to everyone. It requires you to look at the specific record and the specific person instead of applying a blanket rule.
Does this apply if I only own one rental and screen tenants myself?
Yes. The CRD regulation applies to housing providers generally and doesn't carve out an exception for owners who self-manage a single unit. If you're the one deciding whether to approve or deny an applicant, the same limits apply to you as to a large management company.
What if my city, like Gardena, has its own fair chance ordinance too?
Follow both. The local ordinance sits on top of the state rule and can add requirements, like a longer waiting period before you can ask about criminal history at all, but it can't give you more room to deny someone than the state regulation allows.
Last verified: July 25, 2026. This is general information for property owners, not legal advice. Confirm your specific situation with a licensed attorney before acting.
Kellie
Schofield Properties
323 Richmond Street, El Segundo, CA 90245
Topics: self-management, screening, fair-housing, landlord-guide
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Schofield Properties is a family run property management company at 323 Richmond St, El Segundo, CA 90245. We have managed the South Bay since 1972 and personally oversee about 186 doors today. Book a call to talk about your property.