The Maximum Tenant Screening Fee an El Segundo Landlord Can Charge in 2026

Published August 10, 2026

Civil Code section 1950.6 caps what an El Segundo landlord can charge an applicant for a background and credit check at 30 dollars, adjusted every year for inflation. Industry reporting puts the 2026 figure near 65 dollars, but the statute itself, not a state price list, is what you can rely on in writing.

The short answer

California caps the application screening fee a landlord can charge at 30 dollars per applicant, set in Civil Code section 1950.6 back in 1998, adjusted upward every year for inflation. That means the cap in El Segundo today is well above 30 dollars, but the exact current figure is not written into the statute itself. Confirm it before you set your fee, and always refund any unused portion.

Last verified: August 10, 2026

What the statute actually caps

Civil Code section 1950.6 governs every application screening fee charged in California, and El Segundo has no local ordinance that changes it. The statute lets a landlord charge an applicant a fee to cover the actual cost of getting information about that applicant, things like a credit report, a background check, or a personal reference check.

The fee cannot exceed two limits at once: the landlord's actual out of pocket cost, and a statutory dollar cap. The statutory cap started at 30 dollars per applicant and may be adjusted annually, commensurate with an increase in the Consumer Price Index, beginning January 1, 1998.

That "may be adjusted" language is why there is no fixed number in the code section itself. The cap has compounded upward for close to three decades of CPI increases. Industry groups, including the California Apartment Association, publish an updated figure each December. Public reporting citing that association puts the 2026 figure in the mid 60 dollar range, but this article was not able to pull the exact cents-level figure from a source that does not sit behind a membership login. Do not treat any number you see in a blog post as gospel. Call the California Apartment Association or check with an attorney for the current figure before you print it on an application.

The two limits work together

Even once you know the current statutory cap, it is a ceiling, not a target. The statute says the fee cannot exceed your actual cost of screening that applicant. If your credit report and background check cost you 45 dollars total, you cannot charge the full statutory maximum and pocket the difference.

What you must do with the money

Three obligations travel with every screening fee an El Segundo landlord collects.

Give an itemized receipt. The applicant is entitled to an itemized receipt showing the actual expenses and the time spent obtaining and processing the applicant's information.

Refund what you did not use. If you do not perform a personal reference check or do not obtain a consumer credit report for a given applicant, you must return the portion of the fee not used for those purposes.

Provide the credit report. An applicant who paid the fee is entitled to a copy of any consumer credit report obtained, generally within seven days.

The condition on charging a fee at all

Section 1950.6 also says a landlord cannot charge a screening fee when the landlord knows, or should have known, that no rental unit is available at that time or will be available within a reasonable period. If you are collecting applications for a unit that will not actually be vacant, you cannot collect a fee at all.

Quick reference

| Element | Requirement | Citation |

|---|---|---|

| Base statutory cap | 30 dollars per applicant, set in 1998 | Civil Code 1950.6(b) |

| Adjustment | Annual, tied to the Consumer Price Index | Civil Code 1950.6(b) |

| Second, independent limit | Cannot exceed actual out of pocket cost | Civil Code 1950.6(b) |

| Itemized receipt | Required for every fee charged | Civil Code 1950.6(d) |

| Unused portion | Must be refunded | Civil Code 1950.6(e) |

| Fee when no unit is available | Prohibited | Civil Code 1950.6(c)(1) |

| Current exact dollar figure | Not confirmed in this article | Check California Apartment Association or an attorney |

A practical process for a small El Segundo landlord

1. Before you post a listing, confirm the current year's adjusted screening fee cap directly with the California Apartment Association or a real estate attorney rather than a search result.
2. Set your actual fee at or below whichever is lower, your real screening cost or the current statutory cap.
3. Keep a receipt template ready that itemizes the credit report cost, background check cost, and any time charge.
4. Build a refund step into your process for any applicant whose reference check or credit report you skip.
5. Never collect a fee for a unit you know is not actually going to be available.

FAQ

Is 30 dollars still the real cap in 2026?

No. Thirty dollars was the 1998 base figure. Civil Code section 1950.6 lets that number rise every year with the Consumer Price Index, so the real current cap is higher. Confirm the exact current figure with the California Apartment Association or an attorney rather than relying on an old number.

Can I charge the full statutory maximum on every applicant regardless of my actual costs?

No. The fee cannot exceed your actual out of pocket cost of screening that applicant, even if that cost is below the statutory cap.

What if I never run a credit check on an applicant I charged?

You must refund the portion of the fee that was not used for a personal reference check or a consumer credit report.

Does El Segundo have its own screening fee ordinance?

Not that this article identified. Civil Code section 1950.6 is a statewide statute and governs El Segundo landlords directly.

Can I charge a screening fee if I am not sure the unit will actually be vacant soon?

No. The statute prohibits charging a fee when you know or should know that no unit is available at that time or within a reasonable period.

Do I have to give the applicant their credit report?

Yes. An applicant who paid the screening fee is entitled to a copy of any consumer credit report you obtained on them, generally within seven days.

This is general information, not legal advice. Confirm the current dollar cap and your specific screening process against Civil Code section 1950.6 and with a licensed attorney before charging any applicant.

Topics: compliance, landlord law, screening fees, South Bay, El Segundo

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