Can You Require Applicants to Pay an Application-Screening Fee?
Yes. When an applicant submits a rental application, you may decide to charge them a fee to cover the cost of obtaining credit reports or background checks. In most states, the amount that you can charge is between $30-$50. Legally, any fee you charge cannot exceed the actual costs.
Alternatively, you could choose to take advantage of a free online application and thorough screening report.
If you do charge a fee, you are required to provide the applicant with an itemized receipt detailing the expenses. Similarly, if you obtain a credit report from an applicant, you must provide them with a copy if they request one.
Keep a copy of the itemized receipt for your records.
- What Is a Rental Application Form?
- Should You Use a Rental Application Form in the Tenant Screening Process?
- What Information Can You Find in an Applicant’s Credit Report?
- Where Can You Get an Applicant’s Credit Report?
- What Should You Look for in an Applicant’s Credit Report?
- Can You Refuse an Applicant Based on a Poor Credit Report?
- How Can You Verify the Income and Employment History of an Applicant?