The rental application fee, some charge them some do not. That is the choice of the broker. The choice to deal with someone who charges an application and other fees is up to you.
Rental Application Fee
Before you set off to find that dream rental you need to understand the fees you may encounter. More and more real estate companies are looking at charging rental application fees. Management companies have been doing it for years. “This is the cost of doing business with them.”
Right now you have to be asking yourself, what are these fees? How do they work? What is the benefit to you if any? Let us examine these fees as well as others.
Who Charges This Fee?
Quick Note
There are two entities that charge rental application fees. These are real estate companies and rental management companies.
Note: Some rental application fees are rolled over into the rent. Most of the time it goes into the real estate company’s coffers.
A word about apartment locators
Management Companies
Other Non-Refundable Fees
The Reason Why
There are some good reasons why these companies want their own report. Believe it or not, these reasons are there for your protection.
- Your report belongs to you; you control what can be read.
- Usually, that means just the summary.
- No one is allowed to keep or copy the report unless you allow it.
- Even if you are willing to allow a copy to be made this may be declined.
Photo Id
A Fee To Become A Customer
The Rental Application Fail
One company I dealt with wanted to charge my customer a rental application and credit report fee. Both were non-refundable. My customer had no problem with the credit report fee. The application fee was another story.
They wanted the application fee even though my customer had filled out my–free no charge–just as good as theirs–rental application. I questioned this fee. The response; this is how her office worked. No application fee, no apartment.
Get It In Writing
The Writing in Stone
- No law exists stating that money must be returned to you if you sign an agreement stating that you understand the money is non-refundable.
- There is no set dollar amount for a rental application.
- No set dollar amount for a background check or credit report.
- No law states you have a right to know why you were rejected for a particular apartment.
Was this article informative? Great. Let me hear your thoughts on it. Leave a comment. Let’s start a conversation.
Disclaimer: I am not a lawyer and nothing stated here is legal advice. This article applies to the five boroughs of New York. All information is deemed accurate but not guaranteed. Always check the real estate laws in your part of the country.
Comments, Questions, Suggestions?
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