Paying rental application fees before viewing an apartment

Searching for an apartment is no small task. From researching vacancies to scheduling showings to submitting an application, there are a number of steps prospective tenants must take before they can call a place “home”. Not to mention, the process of finding and securing a rental can differ from location to location, adding to tenants’ headache and frustration. 

For example: what happens if a landlord asks for the application fee in full before a renter even steps foot inside an apartment? How much is a landlord or property manager legally allowed to charge for an application fee and can they cancel a viewing appointment if an applicant refuses to pay? And is it common for renters to expect to pay an application fee before attending a showing in person? 

In this article, we’ll answer all those questions as well as provide an overview of application fees, why landlords and property managers ask for them, and the do’s and don’ts of paying those fees. Renters will walk away with a better understanding of what to expect when it comes to fees and navigate the application process with confidence.

What is an application fee?

A rental application fee is a one-time payment prospective tenants pay when filling out an application for an apartment. This fee is used by landlords to cover the cost of processing an application, which includes running background checks and employer verification. It can also cover soft costs involved in the application process, such as the time it takes to review applications and admin work. 

While fees usually run anywhere between $25 and $50, they vary state by state and can cost upwards of $100 in expensive neighborhoods or markets that don’t have fee limits. California law, for example, allows landlords to increase application fees annually based on the consumer price index at the time. On the other hand, landlords in New York are prohibited from charging more than $20 for an application fee.

Regardless of where you’re applying for an apartment, it’s unlikely you’ll be able to avoid paying the application fee. These costs are standard in the industry and are designed to help keep potential tenants and landlords safe from housing scams. In some instances, a rental application fee can be refunded but only in specific circumstances. For example: if a landlord decides to go with another tenant before they run your application, they’re likely to refund you your entire application fee. 

Do I have to pay an application fee before I see an apartment? 

One common question prospective tenants have is whether or not they should pay an application fee before they view a rental in person. In fact, it used to be considered a red flag if listings asked an applicant for a fee before showing the apartment. 

But the recent pandemic and growing concerns surrounding eviction moratoriums have seen some landlords start asking for a fee before touring a listing. Tenants may be asked to complete an application as a pre-screen to protect landlords from wasting their time or dealing with fake applicants. In this case, a landlord will use the fee to run a thorough background check on prospective tenants and should refund the money if they choose not to rent to said applicant. 

As always, tenants should exercise caution if asked for money before seeing the apartment in person. Take the time to verify any agents, landlords, or property management companies involved and confirm they belong to a legitimate business. Ask the landlord to explain in writing what they’ll use the application fee for and if they have a refund policy. Finally, double check that the fee doesn’t exceed the average amount for an application fee in your area. If you’re asked for a security deposit or first month’s rent to secure your viewing appointment, there’s a good chance you’re dealing with a scammer. 

Do’s and don’ts of rental application fees

If you’re ready to take the next step in your apartment hunt, brush up on some helpful tips and best practices for navigating the application process. In addition to looking out for applications that ask for a fee before the showing, keep these other do’s and don’ts in mind: 

• Do know that landlords are allowed to charge a fee to process your application
• Do thoroughly vet the listing, including the agent who listed the rental and the property management company 
• Do ask for a breakdown of what the fees will cover as part of your application process
• Do ask if there are any refund policies in place in the instance your application is not considered or processed
• Do research what state or local laws are in place to limit how much a landlord can charge you for an application fee
• Don’t assume all application fees are refundable
• Don’t pay an excessive amount of money before seeing the apartment in person 

Frequently asked questions about application fees

Conducting your due diligence will help protect you from scammy landlords and questionable properties before handing over your money. The good news is, you’re not alone in your apartment search and any questions you have about application fees have likely been asked by another prospective tenant. 

• Are application fees refundable? In most cases, the landlord does not have to refund an applicant their fee but this can vary by state. In California, for example, if a landlord charges you a fee but never conducts a background check or screening report, they are legally required to refund you any unused amount. 
  
  
• Can I search for apartments that don’t have an application fee? While you can look for listings that don’t require a fee, it’s strongly recommended you avoid these listings. These fees are an industry standard and ensure the landlord is fairly evaluating your application against other potential candidates. 
  
  
• What does the application fee cover? The application fee covers the hard and soft cost of processing a rental application, including running a background and credit check. This fee is collected by landlords as part of an application and is not meant to be for profit.
  
  
• How can I avoid paying for multiple application fees? If you’re applying to multiple apartments, consider using a sharable rental application to avoid paying for each application fee. With RentSpree’s rental application, applicants pay a one-time fee to complete an application which they can reuse to apply for multiple properties. 
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• How much do tenant screening services cost, and who pays? Most platforms default to applicant-paid screening, usually $29 to $55. On RentSpree, applicants pay a $39.99 application fee and the platform is free for agents and landlords, though some places don't allow passing the fee to applicants, so check your local rules. For a full cost comparison across platforms, see the best tenant screening services.

As you embark on your apartment search, take a moment to learn what goes into the application approvals process and the different red flags to watch out for to avoid a scam listing. If you’re ready to take the next step, learn how to pull a rental history report on yourself to help put your best foot forward for your future landlord.