How to Screen Tenants in San Jose, CA (2026 Landlord Guide)

Tenant Screening Rules in San Jose, CA

When you screen tenants in San Jose, you need to know that the largest city in the Bay Area by population layers its own screening regulations on top of California state law. The most significant local law is the Opportunity to Compete Act, which governs criminal background check timing and process. Landlords must also navigate AB 1482, San Jose’s Apartment Rent Ordinance, and statewide source of income protections. The combination creates a demanding compliance environment where screening process matters as much as screening criteria.

Opportunity to Compete Act (SJMC §5.22)

San Jose’s Opportunity to Compete Act took effect in 2020 and regulates how landlords use criminal history in screening decisions. Key requirements:

• No criminal history questions on applications. Remove all questions about arrests, convictions, criminal history, or incarceration from your rental application form. Verbal inquiries during showings or phone calls are also prohibited.
• Conditional offer before background check. Complete all non-criminal screening (credit, income, rental history, employment) first. Issue a written conditional offer of tenancy before running any criminal background check.
• Prohibited considerations: Arrests not resulting in conviction, juvenile records, sealed or expunged records, non-felony marijuana offenses, infractions, and convictions older than 7 years (with limited exceptions for sex offenses requiring registration).
• Individualized assessment required. For qualifying convictions, you must evaluate: the nature and severity of the offense, the amount of time that has passed, the applicant’s age at the time of the offense, evidence of rehabilitation, and whether the conviction relates directly to a legitimate, specific concern about the tenancy.
• Written preliminary denial. If you intend to deny based on criminal history, provide written notice specifying the conviction(s), your reasoning, and the applicant’s right to respond with mitigating information within at least 10 business days.
• Final written decision. After reviewing any response, provide a final written decision. If denying, explain why the mitigating evidence was insufficient.

The Opportunity to Compete Act applies to landlords with one or more residential rental properties in San Jose. Violations can result in penalties and private legal action.

Apartment Rent Ordinance

San Jose’s Apartment Rent Ordinance (ARO) applies to apartments and certain other residential units built before September 7, 1979. The ARO provides:

• Annual rent increase caps (typically 5%, but adjustable by the Rent Stabilization Program)
• Just cause eviction protections separate from AB 1482
• Petition process for above-cap rent increases
• Registration requirements with the Rent Stabilization Program

For ARO-covered units, the stakes of screening are compounded — rent increases are limited, eviction is restricted to enumerated just causes, and the cost of a vacant unit during turnover is higher because incoming rents may still be constrained.

AB 1482 Coverage

Properties not covered by the ARO may still fall under AB 1482 (Cal. Civ. Code §1946.2), which provides statewide just cause eviction protections and rent caps (5% + CPI, max 10%) for most properties built more than 15 years ago. Between the ARO and AB 1482, the vast majority of San Jose rentals have just cause eviction requirements, making thorough screening essential.

Application Fee Rules

Cal. Civ. Code §1950.6 caps application fees at actual screening costs (approximately $62.02 for 2026). You must provide an itemized receipt on request. AB 2559 requires acceptance of tenant-provided screening reports less than 30 days old.

FCRA Compliance

The Fair Credit Reporting Act (15 U.S.C. §1681 et seq.) applies to all San Jose landlords using consumer reporting agencies.

Before Running Reports

• Obtain written authorization from the applicant (15 U.S.C. §1681b(a)(2))
• Disclose that consumer reports may be used in your rental decision
• For criminal reports: pull only after issuing a conditional offer (Opportunity to Compete Act)

Adverse Action Requirements

Under 15 U.S.C. §1681m, every denial based on a consumer report requires an adverse action notice including:

1. The specific reason(s) for denial
2. The name, address, and phone number of the consumer reporting agency
3. A statement that the CRA did not make the decision
4. Notice of the right to a free report copy within 60 days
5. Notice of the right to dispute inaccurate information

For criminal-history-based denials, both FCRA adverse action notices and Opportunity to Compete Act preliminary/final denial notices are required. These are separate legal obligations.

What San Jose Landlords Can and Cannot Screen For

Criminal History

• Cannot ask on application. Remove all criminal history questions from forms and verbal inquiries.
• Cannot check until after conditional offer. Complete all other screening first.
• Cannot use: arrests without conviction, juvenile records, sealed/expunged records, infractions, non-felony marijuana, convictions older than 7 years (limited exceptions).
• Must conduct individualized assessment for qualifying convictions.
• Must provide preliminary denial notice with at least 10 business days to respond.
• Must provide final written decision after reviewing applicant’s response.

Source of Income

• Must accept Section 8, VASH, CalWORKs, SSI/SSDI, and all lawful income sources (SB 329)
• Count voucher value toward income-to-rent ratio
• Cannot advertise income source restrictions
• Cannot impose different terms or higher deposits on voucher holders

Credit History

• Credit reports are permissible screening tools in San Jose
• Do not use credit score as the sole basis for denial
• Review full report for context — payment patterns, debt types, recent vs. old items
• Medical collections are less predictive of rent default
• Consider alternative verification for applicants with thin credit files

Setting Your Screening Criteria

Step 1: Define Written Standards

Criteria	Recommended Threshold	San Jose Notes
Income	3x monthly rent (gross)	Include voucher value; accept all lawful income
Credit score	620+ (with full report review)	Never sole basis for denial
Rental history	2+ years, no evictions	ARO/AB 1482 make this critical
Criminal history	Individualized assessment AFTER conditional offer	Opportunity to Compete Act: strict sequencing
Employment	Currently employed or verifiable income	Tech industry layoffs may affect recent history

Step 2: Screen Non-Criminal Criteria First

Run credit report, verify income and employment, check eviction history, and contact previous landlords. Evaluate against your written standards. If the applicant qualifies, issue a conditional offer in writing.

Step 3: Criminal Background Check (Post-Conditional Offer)

Run the background check only after the conditional offer. If a qualifying conviction appears, conduct individualized assessment. If considering denial, send a preliminary denial notice and wait at least 10 business days for the applicant to respond with mitigating evidence.

Step 4: Documentation

Retain all applications, screening reports, conditional offers, individualized assessments, preliminary and final denial notices, applicant responses, and adverse action notices for at least 5 years. San Jose’s active tenant advocacy community means disputes are common and documentation is your best defense.

Related San Jose Screening Resources

• San Jose tenant screening laws — full local ordinance breakdown
• Denial checker tool — verify your denial complies with FCRA and Opportunity to Compete Act
• How to screen tenants in Oakland, CA — compare Oakland’s Fair Chance rules
• How to screen tenants in San Francisco, CA — SF’s Fair Chance Ordinance comparison
• How to screen tenants in Fresno, CA — Central Valley market without local ordinances

Bottom Line

San Jose’s Opportunity to Compete Act, combined with the Apartment Rent Ordinance and AB 1482, creates a multi-layered screening compliance environment where process sequencing is as important as the criteria themselves. Criminal background checks come last, after a conditional offer, with individualized assessment and structured denial notices. Accept all lawful income sources, apply your criteria consistently to every applicant, and document every step — your screening records are your primary legal defense when you screen tenants in San Jose.