Rental application fee

[Uri E.]

Do you charge a rental application fee?  If yes, then:

1. How do you determine the $$ fee? ... is it per family, per adult, other?

2. What do you include with the fee? (e.g. background check, credit report, etc.)

3. How do you collect the fee?

[Nathan Gesner]

A proper application screening includes a full credit/criminal background. Those cost money and you should be charging an application fee to at least cover your costs. Those generally cost $25 - $30 dollars PER PERSON, therefore your application fee should be at least that much.

Charging a fee also screens out a lot of people that aren't really serious or that wouldn't normally qualify. I manage about 400 rentals and you'd be amazed how many people tell me they will apply . . . as soon as they get paid and can afford the $30 application fee! If it's the 15th day of the month and you can't afford $30, that's a very big red flag.

You can also search the internet for property managers in your area and see what they are charging for application fees to ensure you're not charging too much or too little.