When it comes to rental application fees, there are a few things that both tenants and landlords should know! Landlords usually charge rental application fees that go towards running background and credit checks on applicants.
How much are rental application fees?
Rental application fees are to cover the cost of screening a tenant, so the fees shouldn’t cost any more than that. For a landlord to collect the rental application fee, they have to do so through an online platform or via cash, check, or card.
Can application fees ever be refunded?
It depends. In some competitive markets, landlords may rent their properties while they have the fees and applications of potential tenants still pending. More than one renter can apply to any given property. In a lot of cases, it’s a good thing, as it gives potential tenants and landlords options. Should one tenant fall short of standards, the landlord can then move on to a tenant who does. However, it’s the responsibility of the landlord to limit the number of applications they accept per unit. The landlord should refund the rental applications fees to the applicants if they have already accepted another application while others are pending.
In some states, landlords can make their application fees non-refundable. In this case, it is important that applicants are notified in advance of this.
Who has to pay the application fee?
If the person or people on the lease are over the age of 18, they will be required to pay an application fee. This is because the landlord will have to run credit, affordability and background checks on each tenant.
If you’d like to learn more about property management software, check out our previous blog post. Why It’s Time to Ditch Your Spreadsheets. If you’re a tenant, take a look at our previous post on: Using Facebook Marketplace to Find a Rental.
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