SAN DIEGO — Renters in California could soon receive added protections when it comes to application fees for rental units, as well as security deposits.
One study by RentCafe found that there are on average 24 applications submitted for every available rental unit in San Diego, meaning prospective tenants are often spending hundreds on application fees they rarely get back.
This newly proposed legislation aims to change that.
"It is really crazy, because as soon as places are posted, they're gone in like two seconds!" said Joshua Houston, who moved to San Diego from Memphis. He said the competition to land an apartment here is fierce, and often requires prospective tenants to shell out significant cash up front.
"Application fees can go from anywhere from $40 to $80 per application, and you have to apply for anywhere from five to 10 to however many you have until you actually get your spot," he told CBS 8.
Assembly Bill 2785 would change the game, though. capping application fees at $50 and also refunding applicants who ultimately don't get the rental.
"At the end of the day, renters will be protected," said Assembly Member Lori Wilson, who proposed this new bill. She said it would help level the playing field for renters who can't afford to spend so much to apply for a rental unit they may not even get.
"It could be a matter of, am I going to have food that month or apply to all of these places to ensure that I have housing next month," she added, "and we don't want Californians making that decision."
AB 2785 also originally had required landlords to place a tenant's security deposit into an interest-bearing account.
A recent amendment now makes that optional.
However, if a landlord does earn interest off the deposit, they would be required to hand that over to the tenant when they get their deposit back.
Lisa Ballard, who rents in Hillcrest, applauds that idea.
"So if you take really good care of the place and you get all of that money back, then that's a pretty good incentive for somebody to really take care of the property that they're renting," she said.
Organizations representing landlords, though, like the California Apartment Association (CAA) are opposed to this legislation..
The CAA has proposed a one percent administrative fee if landlords are required to return any interest earned on a tenant's security deposit.
"Unfortunately, if that one percent fee is not taken into account, it is possible that rents would be increased to account for that increased business expense," said Embert Madison, staff attorney with the CAA.
AB 2785 has already passed the judiciary committee, and is now headed to the housing committee. if ultimately approved and signed into law, it could go into effect at the start of 2025.
WATCH RELATED: California renters will have more protections in 2024 under new laws (Dec. 27, 2023)