Tenant Screening Laws 2026: California & Texas

Before diving into state-specific rules, it is worth remembering that the Fair Credit Reporting Act applies to every landlord in every state. You must obtain written authorization before ordering a background check, provide a pre-adverse action notice (including a copy of the report and a summary of FCRA rights) before denying an application based on the report, and send a final adverse action notice if you proceed with the denial.

These federal requirements are the baseline. California and Texas both add requirements on top of them — they do not replace them.

If you are not already familiar with the FCRA adverse action process, review it before screening tenants in any state. Skipping the required notices is one of the most common — and most expensive — compliance mistakes landlords make.

California has some of the most tenant-protective screening laws in the country. Landlords operating in California must navigate several state-specific requirements that go well beyond federal law.

Application fees are tightly regulated. Under California Civil Code Section 1950.6, landlords may charge an application screening fee, but the amount is capped and adjusted annually for inflation. For 2026, the cap is approximately $65 per applicant (confirm the current figure with the California Department of Consumer Affairs, as it adjusts each year). You must provide an itemized receipt of how the fee was spent, and if you do not actually run a background check, you must refund the fee.

Criminal history use is restricted. California's Fair Chance Act (AB 1076, effective 2024) extended "ban the box" protections to housing in jurisdictions that have adopted local ordinances. Several California cities — including Los Angeles and San Francisco — have local fair chance housing ordinances that restrict when and how landlords may consider criminal history. Statewide, landlords must conduct an individualized assessment before denying based on a conviction, considering the nature of the offense, how long ago it occurred, and evidence of rehabilitation.

Eviction records are limited. Under California law, landlords may not consider an unlawful detainer (eviction) action that was filed but resulted in a judgment for the tenant, a dismissal, or a settlement in the tenant's favor. Only eviction judgments against the tenant may be considered, and even then, the FCRA's seven-year lookback applies.

Source of income protections apply in many California jurisdictions. While not a background check issue per se, landlords in cities with source-of-income protections (including Los Angeles, San Francisco, and others) cannot screen out applicants based on their use of housing vouchers or other lawful income sources.

Adverse action notices must be specific. California requires that adverse action notices identify the specific information in the report that contributed to the denial — a general reference to "information in your background check" is not sufficient under state law.

Texas takes a more landlord-friendly approach to tenant screening regulation than California, but there are still important state-specific rules to follow.

Application fees are less regulated than in California. Texas does not cap application screening fees at the state level, though individual cities may have local ordinances. Landlords should still be reasonable — excessive fees can deter qualified applicants and may attract scrutiny.

Criminal history use is less restricted statewide. Texas does not have a statewide ban-the-box law for housing. Landlords generally have more discretion to set their own criminal history screening criteria. However, HUD guidance on the Fair Housing Act still applies — blanket policies that disqualify all applicants with any criminal record, regardless of the nature or age of the offense, can constitute disparate impact discrimination under federal fair housing law.

The Texas Property Code governs security deposits and lease terms but does not impose specific restrictions on background check criteria beyond federal law. Landlords must still follow the FCRA adverse action process.

Austin is an exception. The City of Austin has enacted local fair chance housing protections that restrict the use of criminal history in tenant screening. If you own rental property in Austin, you must comply with Austin's local ordinance in addition to state and federal law. Check with the Austin Housing Department for current requirements.

Eviction records: Texas does not restrict the use of eviction records beyond the FCRA's seven-year rule. A prior eviction judgment is a legitimate screening criterion under Texas law, provided you apply it consistently and follow the FCRA adverse action process if you deny based on it.

Application fee caps: California caps fees (approximately $65 in 2026, inflation-adjusted). Texas has no statewide cap.

Criminal history restrictions: California requires individualized assessment statewide; several cities have additional fair chance housing ordinances. Texas has no statewide restriction, but Austin has local protections and federal fair housing disparate impact rules apply everywhere.

Eviction record use: California restricts use of non-judgment eviction records. Texas follows the federal seven-year rule with no additional state restrictions.

Adverse action specificity: California requires identifying the specific information that contributed to the denial. Texas follows the federal standard.

Source of income: Many California cities prohibit screening out housing voucher holders. Texas has no statewide source-of-income protection (though some cities may have local ordinances).

Regardless of whether your rental property is in California, Texas, or any other state, the following FCRA steps are required every time you screen a tenant using a background check company:

Step 1 — Written disclosure: Provide the applicant with a standalone written disclosure that a consumer report may be obtained for tenant screening purposes.

Step 2 — Written authorization: Obtain the applicant's signed authorization before ordering the report. Keep a copy.

Step 3 — Pre-adverse action notice: If you intend to deny the application based on the report, provide the applicant with a copy of the report, the FTC's "A Summary of Your Rights Under the FCRA," and written notice that you are considering adverse action.

Step 4 — Reasonable waiting period: Allow the applicant a reasonable time (typically five business days) to dispute any inaccurate information in the report before finalizing your decision.

Step 5 — Adverse action notice: If you proceed with the denial, send the applicant a final adverse action notice identifying the CRA that provided the report, the CRA's contact information, and the applicant's right to a free copy of the report within 60 days.

Background Check Solutions provides the required disclosure and authorization forms as part of the registration process. Our reports include the FCRA rights summary. If you have questions about the adverse action process, our support team is available Monday through Friday, 8am–5pm CT.

If you own rental properties in both California and Texas — or in multiple states — the safest approach is to build your screening policy around the most restrictive requirements that apply to any of your properties, then adjust for local variations.

Maintain a written screening policy for each property or jurisdiction. Document the criteria you apply, how you evaluate criminal history, and how you handle the adverse action process. Consistency is your best defense against fair housing complaints.

Train anyone who handles applications — property managers, leasing agents, staff — on the specific rules that apply in each jurisdiction. A leasing agent who applies California's individualized assessment requirement to a Texas property is being overly cautious; one who applies Texas's more permissive rules to a California property may be creating legal exposure.

Review your screening policy at least annually. State and local laws in this area are changing rapidly. What was compliant in 2024 may not be compliant in 2026. Subscribe to updates from your state apartment association and consult with a landlord-tenant attorney in each state where you operate.

When in doubt, err on the side of the more protective standard. The cost of a fair housing complaint or FCRA lawsuit far exceeds the cost of being more careful than strictly required.