application fees

Discussion in 'Landlord & Rental Property Questions' started by cmiller, Jun 20, 2014.

  1. cmiller

    cmiller Active Member

    Joined:
    Jun 2014
    Posts:
    36
    Likes Received:
    0
    Do you believe that it is fair for landlords and others charging application fees when they know that they are not going rent to the person?
     
  2. Kate

    Kate Senior Investor

    Joined:
    Apr 2014
    Posts:
    515
    Likes Received:
    5
    Hmmm... I'm not familiar with application fees. Is that common at some places? To answer your question, I'd think the fee would be to do background checks and so on, is that right? And if so, the landlord wouldn't know they're not going to rent to the person until they do those checks.

    Or maybe it's something else and I'm not up to speed on it... we've never charged an application fee, so I can't think of a reason for one except the background checks.
     
  3. cmiller

    cmiller Active Member

    Joined:
    Jun 2014
    Posts:
    36
    Likes Received:
    0
    Yes an background check is part of the application fee. The question I am asking is is it fair to have a person pay an application fee knowing you are not going to rent to them regardless of what the results are going to be. Meaning the landlord has already decided in their mind that they are not going to rent to the person put still charges for an application fee.
     
  4. dianethare

    dianethare Senior Investor

    Joined:
    May 2014
    Posts:
    987
    Likes Received:
    9
    ....and if they are not going to rent that person, do they refund back the application fees?, just asking as this is the first time of reading about such, i never knew of anything such as application fees.
     
  5. ash2014uk

    ash2014uk Well-Known Member

    Joined:
    Jun 2014
    Posts:
    54
    Likes Received:
    0
    I just feel asif the application fee shows some sort of commitment to stick with the rent and not change minds quickly one day.
    I have no problem with the fees, as long as they are not crazy amounts which cause problems when it comes to paying the rent later on.
     
  6. SilvioMaF

    SilvioMaF Member

    Joined:
    Jun 2014
    Posts:
    8
    Likes Received:
    1
    Treat every single applicant, phone call, potential tenant, and actual tenant exactly the same. In case you didn't know, there are "screeners" working for (I assume) government agencies to assure compliance with federal fair housing laws.
     
    Last edited by a moderator: Jul 8, 2016
  7. Muthoni

    Muthoni Guest

    Joined:
    Aug 2014
    Posts:
    247
    Likes Received:
    0
    No it is very unfair and taking advantage of a venerable person. An application fee should only be charged when a person is filling in the lease forms after being accepted to rent. Some time back in my region a number of unscrupulous persons charged interview fees for job vacancies. This is daylight robbery if you ask me.
     
  8. Rainman

    Rainman Senior Investor

    Joined:
    Jun 2014
    Posts:
    1,587
    Likes Received:
    4
    Wouldn't charging application fees make you lose potential tenants? That's because some people use real estate agents to get them tenants. Someone looking for a home to rent would prefer talking to a real estate agent because at least then they have the guarantee that they'll find them [the tenants] a nice home.
     
  9. Profit5500

    Profit5500 Senior Investor

    Joined:
    Jun 2014
    Posts:
    572
    Likes Received:
    0
    Everything in this world has some sort of application fee to get with. I would not get phased by the fee its going to get you some point in time. Schools are like the most common places where you get charged a application fee for applying to a university. Even if you are just wanting to take one course there is that application fee that can be $100 depending on the school. Tenants would get charged for the application fee depending on the place I guess.
     
  10. jason

    jason Guest

    Joined:
    Sep 2014
    Posts:
    89
    Likes Received:
    0
    I charge a low application fee that covers the credit check. It helps me know that applicants are seriously interested in the property and not wasting time. I do not agree with fees that are higher than $30-40 or so. At that point it seems like you're just charging extra to make money.

    Without the application I really have no way of knowing if I'll rent to the person or not. So for me there's no way to try to take someone's money for no good reason.
     

Share This Page