Application Fee
Hi there, soon to be 1st time landlord here. My question to you, my esteemed colleagues, is when taking an application fee from several people during an open house, is it customary to return the fee to the people who do not get the unit?
What was the purpose of the application fee?
Depends upon what your local landlord-tenant law says on the subject and the amount of the fee.
I know that here in SoCal you can charge an app fee for associated expenses but cannot charge for profit on it. In addition to your local laws it will depend on the depth of information you acquire with the applications. Running just a credit check will be less expensive than doing an eviction and criminal check but if you charge too much you may lose some good tenants.
My suggestion is to return everything but what you actualy spent. Credit check costs me $8.50.
I was down this evening in San Diego. I had no Idea Woodbury College had a school of architecture. Attended a lecture on Mobile Dwelling Units by Lot-EK they are really far out but really know container designs for housing units.
Eclepticized. Lucius
[ Edited by jackman on Date 11/21/2003 ]
I'm not aware of any law like that in Georgia. I take $50 (refundable) for the application fee. If they end up being the tenet, I take $50 out of the Deposit.
If they don't rent, I keep it. (what's left at least)
Savvy,
Georgia law does not require application fee refunds (or holding deposit refunds), unless there is a prior agreement to do so.
Other states may require a refund for amounts not actually spent, while yet other states may permit application fees up to $25 to be non-refundable without an accounting.
A landlord really needs to be aware of his duties and responsibilities under the local landlord tenant law.
If I were that lucky to get even two applications and a fee I would let the second and each one thereafter that I already heve an application and am taking back ups. You need to decide how to handle these and make it a company rule of how to review applications and decide what one to look at first. What you want to do is to get the best qualified applicant but the first one may be qualified enough. First should be the first you look at. Decide if they meet the income requirements, credit etc. The first one that meets the mininum requirements should be the tenant you select. Others that you did not even get to should receive total refund. Ones that you ran the inspection on and did not qualify should not receive a refund. I believe this would be fair as long as you treat each the same. Even a shoe salesman deserves a good place to live. (Married With Children joke)
Hope this helps some
Ted Jr
Quote:Ones that you ran the inspection on and did not qualify should not receive a refund. I believe this would be fair as long as you treat each the same.
Ted Jr,
Might be fair, but may not be legal. In many states, landlord-tenant law has specific rules already in place. Every landlord should know the applicable law and ensure that management practices are not in violation of the law.