Can a Manhattan Beach Landlord Skip an Earlier Rental Applicant? What AB 2493 Actually Requires

Published August 10, 2026

AB 2493 amended Civil Code section 1950.6 in 2024. It does not flatly ban skipping an earlier applicant. It ties the order-of-receipt rule to whether the landlord charges a screening fee and which of two compliant processes the landlord chooses. Manhattan Beach landlords have a real choice here.

The short answer

AB 2493 amended Civil Code section 1950.6, not a general "first come, first served" rule for every rental application. The order-of-receipt requirement only binds a Manhattan Beach landlord who charges an application screening fee and who chooses one specific compliant process for handling that fee. A landlord who picks the other process, or charges no fee at all, is not bound the same way.

Last verified: August 10, 2026

The question behind the hint

The premise many landlords repeat is that California now requires every rental application to be processed strictly in the order it arrived. That is close, but not quite what the statute says. Civil Code section 1950.6 ties the order-of-receipt rule to the screening fee mechanism, not to applications generally.

What section 1950.6 actually says

Subdivision (c)(2) of the statute says a landlord may charge an application screening fee only if, at the time the fee is collected, the landlord offers one of two processes.

Process A, the order-of-receipt process. Completed applications are considered, per the landlord's established written screening criteria, in the order in which the completed applications were received. The landlord approves the first applicant who meets the established criteria. The landlord may only charge fees for applications that were actually considered, and must refund a fee within seven days if an application was not considered because of a concurrent submission.

Process B, the refund process. The landlord returns the entire screening fee to any applicant who is not selected for tenancy, within seven days of selecting an applicant or 30 days of when the application was submitted, whichever comes first.

A Manhattan Beach landlord who charges a fee has to run one of these two processes. Only Process A locks in the strict order-of-receipt rule. A landlord who runs Process B is not required to process applications in the order they arrived, but is required to refund every unselected applicant's fee on the statute's timeline.

What is mandatory versus what is a choice

This is the real answer to "can a landlord skip an earlier applicant."

Mandatory, no exception: If a landlord charges a fee and chooses Process A, the first applicant who meets the established, written screening criteria must be approved. There is no carve out in the statute for preferring a later, more convenient applicant over an earlier one who meets the criteria.

A landlord's choice: Whether to use Process A at all is optional. A landlord who instead uses Process B, or who does not charge an application screening fee, is not bound by the strict order-of-receipt rule in the statute.

Always mandatory regardless of process: A landlord cannot charge a screening fee at all when the landlord knows, or should have known, that no rental unit is available at that time or within a reasonable period.

Quick reference

| Scenario | Order-of-receipt binding? | Citation |

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

| Landlord charges a fee, chooses Process A | Yes, first qualified applicant must be approved | Civil Code 1950.6(c)(2)(A) |

| Landlord charges a fee, chooses Process B | No, but must refund every unselected applicant's fee | Civil Code 1950.6(c)(2)(B) |

| Landlord charges no screening fee | Section 1950.6's order rule does not apply | Civil Code 1950.6(c)(2) |

| No unit actually available | Fee prohibited regardless of process chosen | Civil Code 1950.6(c)(1) |

Why this matters in a market like Manhattan Beach

Manhattan Beach draws a high volume of applicants per listing given the school district and the coastline, so a landlord here is more likely than most South Bay landlords to actually receive multiple completed applications within days of each other. That is exactly the situation section 1950.6 was written for.

If you charge a fee and pick Process A, document your written screening criteria before you start collecting applications, timestamp when each completed application arrives, and be ready to show why the applicant you approved was the first to meet your own stated criteria. That written criteria and that timestamp are your defense if a skipped applicant complains.

If the volume and paperwork of Process A is not worth it for your portfolio, Process B is a lawful alternative. It trades the order-of-receipt discipline for a refund obligation on every applicant you do not select.

FAQ

Does California law require every landlord to process applications in the order received?

Only if the landlord charges an application screening fee and chooses the order-of-receipt process under Civil Code section 1950.6(c)(2)(A). A landlord using the alternative refund process, or charging no fee, is not bound by that specific rule.

What counts as "meeting the screening criteria" for the first-applicant rule?

The landlord's own established, written screening criteria, applied to the order the completed applications were received. The statute does not define the criteria itself, that is the landlord's own written standard, applied consistently.

If I skip an earlier qualified applicant under Process A, what is my exposure?

The statute conditions the right to charge a screening fee on running one of the two compliant processes correctly. This article did not independently confirm a specific penalty amount or private right of action in the statutory text itself. Confirm current enforcement exposure with an attorney.

Can I charge a screening fee for a unit that is not actually available yet?

No. Civil Code section 1950.6(c)(1) prohibits charging a fee when the landlord knows or should have known that no unit is available at that time or within a reasonable period.

Do I have to refund a fee if I choose Process B and do not select the applicant?

Yes. Under Process B, the landlord must return the entire screening fee to any applicant not selected for tenancy, within seven days of selecting someone or 30 days of submission, whichever occurs first.

Which process should a small landlord in Manhattan Beach use?

That is a business decision, not a legal requirement either way. Process A keeps the fee but requires strict order-of-receipt discipline and documentation. Process B is more flexible on order but requires refunding every unselected applicant.

This is general information, not legal advice. Confirm your specific application process against the current text of Civil Code section 1950.6 and with a licensed attorney before adopting either process.

Topics: compliance, landlord law, fair housing, South Bay, Manhattan Beach

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