When a prospective tenant submits a rental application, the landlord may charge the prospective tenant an application screening fee. The landlord may charge up to $37.57, and may use the fee to cover the cost of obtaining information about the prospective tenant, such as checking personal references and obtaining a credit report on the prospective tenant. California Civil Code Section 1950.6 states that "the maximum fee is adjusted each year based on changes in the Consumer Price Index since January 1, 1998". In 2006, the maximum allowable fee is $37.57. The application fee cannot legally be more than the landlord's actual out-of-pocket costs, and can never be more than $37.57 (for the year 2006). The landlord must give you a receipt that itemizes his or her out-of-pocket expenses in obtaining and processing the information about you. The landlord must return any unused portion of the fee (for example, if the landlord does not check your references). The landlord can't charge you an application screening fee when the landlord knows or should know that there is no vacancy or that there will be no vacancy within a reasonable time. However, the landlord can charge an application screening fee under these circumstances if the prospective tenant agrees to it in writing. Code Section 1950.6(b) states "The amount of the application screening fee shall not be greater than the actual out-of-pocket costs of gathering information concerning the applicant, including, but not limited to, the cost of using a tenant screening service or a consumer credit reporting service, and the reasonable value of time spent by the landlord or his or her agent in obtaining information on the applicant. In no case shall the amount of the application screening fee charged by the landlord or his or her agent be greater than thirty dollars ($30) per applicant. The thirty dollar ($30) application screening fee may be adjusted annually by the landlord or his or her agent commensurate with an increase in the Consumer Price Index, beginning on January 1, 1998." | 
