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In most states, tenants pay a rental application fee to the landlord to conduct a tenant screening. This fee typically covers the cost of background checks and screening services performed by landlords to ensure that a tenant is a good fit for their property.
Even just mentioning the word “fees” is enough to make a tenant, and by extension, landlords, cringe. Renters hate paying them, and landlords hate charging them. But it’s important to know the fees aren’t just a way for landlords to make a little extra cash from applicants. Instead, they add value and security to the rental application process, covering the external, administrative costs of screening a tenant.
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How Much is a Rental Application Fee?
Rental application fee laws vary by state, but they range anywhere from $30 – $75 per applicant. These fees enable landlords to screen their tenants. Completing this process will save everyone time and money in the future.
Why Are These Fees Important?
Rental application fees may seem like an unnecessary and greedy part of the landlording process – especially since moving can be so costly for renters. But only having tenants fill out a rental application form isn’t enough; the screening process is an essential part of finding the best possible applicant for a rental unit.
When landlords run thorough reports, they gain an understanding of the criminal background, credit history, and any previous evictions of the applicants. There’s a lot at stake.
The safety of the neighborhood, the tenant’s ability to pay, and any history of eviction could signal potential problems down the line. That’s what these fees cover, and it’s why they’re so important. Note: Some cities and states limit the types of information that landlords can use when making decisions on tenants.
What Does the Cost Cover?
In most cases, landlords use application fees for tenant screening, which includes a background check, credit check, and often, an eviction report. Some add an administrative fee, but many states stipulate that landlords can only charge for the price of screening, and many allow them to use portable tenant screening reports, which tenants can supply themselves.
To receive a background and credit report, landlords must go through a third-party service, which will scan and collect the legally allowed information on a tenant and report back to the landlord so that they can make an informed decision. State laws vary in exactly what information a landlord can use to approve or deny an applicant, so make sure you’re up-to-date on your local laws before running a tenant screening. TurboTenant offers these reports free to landlords, as you can opt for the applicant to pay the fee.
Average Rental Application Fee
In the U.S., the average rental application fee is between $35 and $75, but there are a variety of factors that go into that price. Some screening services offer different levels of reporting, which impact the screening fee and, consequently, the application fee. For example, some reports include only the background and credit reports, while others include past eviction reports, as well.
The minimum and maximum cap for a rental application fee varies from state to state. Most states have no limits or regulations on what a landlord can charge for an application fee, but some have strict rules. Make sure you check your state-specific laws in advance to avoid any trouble.
Dos and Don’ts of Rental Application Fees for Tenants
Rental application fees are not the most fun topic of conversation. Moving is expensive for renters, and landlords would prefer not to add another fee on top of what’s already a costly process. However, by following best practices, the process can be painless for all parties involved.
Before you pay a house or apartment application fee, you want to make sure that you understand your rights as a tenant. Hopefully, the landlord is transparent and honest, making it easier to understand what the fee covers.
- Do: Understand that landlords are entitled to charge a fee. This statement is particularly true when tenants aren’t allowed to provide a tenant screening report. The fee ensures that a landlord runs a legal background check to understand a tenant’s history fully.
- Do: Ask if the fee is refundable. Understanding the refund policy can prevent surprises and ensure full transparency.
- Do: Clarify the price of the rental application fee. Know exactly what you are paying and why you are paying it.
- Don’t get scammed. The majority of landlords are honest, but taking proper precautions is always a good idea.
Dos and Don’ts for Landlords
When you charge a rental application fee, it’s important to understand why you’re charging it and how it can help you to run your business professionally and successfully.
- Do: Be upfront about rental application fees. It’s beneficial to remain transparent with potential tenants to build a positive and respectful relationship.
- Do: Include the exact fee amount in the application. Be upfront about application fees so that tenants can budget properly and not feel blindsided.
- Do: Specify if the fee is refundable or not: Tenants might not want to apply for a property that doesn’t have a refundable application fee, so make sure to specify this so there are no surprises.
- Don’t profit on rental application fees: Use the fees only for tenant screening; in the long run, you will save more money by accepting responsible and trustworthy tenants.
- Don’t set a rental application fee without checking your state laws. Every state has different laws regarding rental application fees, so it’s essential to understand yours. For more information about state and local rental application laws, see below.
Fees by State
Most states allow landlords to charge an application fee. However, in some cases, they are illegal. In other situations, states set maximum amounts that landlords must follow. Not only are there state laws, but regulations can vary across local regions, so make sure to research your local guidelines before you set your fees.
Make sure you check official websites and local statutes. Laws often change from year to year, so stay updated and informed regularly.
Here are the fee limits for each state:
| Alabama | No limit |
|---|---|
| Alaska | No limit |
| Arizona | No limit |
| Arkansas | No limit |
| California | The maximum amount allowed is tied to the Consumer Price Index. Capped at $64.50 as of 2025 |
| Colorado | Cost cannot exceed the actual screening cost |
| Connecticut | No limit |
| Delaware | 10% of the monthly rent or $50, whichever is greater |
| Florida | No limit |
| Georgia | No limit |
| Hawaii | No limit |
| Idaho | No limit |
| Illinois | No limit |
| Indiana | No limit |
| Iowa | No limit |
| Kansas | No limit |
| Kentucky | No limit |
| Louisiana | No limit |
| Maine | Cannot exceed the actual cost of the screening |
| Maryland | No limit |
| Massachusetts | Only licensed brokers can charge application fees |
| Michigan | No limit |
| Minnesota | Cannot exceed the actual cost of the screening |
| Mississippi | No limit |
| Missouri | No limit |
| Montana | No limit |
| Nebraska | No limit |
| Nevada | No limit |
| New Hampshire | No limit |
| New Jersey | No limit |
| New Mexico | No limit |
| New York | Capped at $20 |
| North Carolina | No limit |
| North Dakota | No limit |
| Ohio | No limit |
| Oklahoma | No limit |
| Oregon | No limit |
| Pennsylvania | No limit |
| Rhode Island | No limit |
| South Carolina | No limit |
| South Dakota | No limit |
| Tennessee | No limit |
| Texas | No limit |
| Utah | No limit |
| Vermont | No limit |
| Virginia | Cannot exceed $50 |
| Washington | Cannot exceed the actual cost of the screening |
| Washington D.C. | Cannot exceed $50 |
| West Virginia | No limit |
| Wisconsin | Cannot exceed $20, and the applicant must receive a copy of the report |
| Wyoming | No limit |
We hope you learned everything you need to know about rental application fees.
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Rental Application Fees FAQs
Are rental application fees refundable?
Sometimes. Rental application fees can be refundable or non-refundable, depending on state law. Usually, landlords do not have to refund the application fee if they reject the tenants.
Are rental application fees legal?
Once again, this depends on your state. In certain states, like Massachusetts, application fees can only be charged by licensed brokers. Double-check to be safe.
Can co-applicants and roommates be charged as well?
Yes. A landlord can charge a rental application fee per tenant, as tenant screenings are unique to each individual. Keep in mind the Fair Housing Act requires landlords to apply the same application process and fee for each applicant.
Rental application fees are an essential part of the rental process, and without them, landlords could have trouble verifying the financial and criminal background of prospective tenants. If you want to learn more about rental application fees or have any questions, visit TurboTenant.
Disclaimer: This blog is for informational purposes only and is published by TurboTenant. It is not legal, financial, or tax advice. Laws and regulations for landlords vary by state and locality and may change over time. Always consult a qualified attorney, accountant, or local housing authority before making decisions related to your rental property. The publisher and authors assume no responsibility for actions taken based on the information provided.
