A Guide to Rental Application Fee Laws By State 

When filling a rental unit vacancy, Landlords and property managers often charge a rental application fee. For Landlords and Tenants, this fee can be a source of confusion and disputes. That said, it’s an important fee to ensure adequate tenant screening. 

To help make this process as smooth as possible for both parties, here’s a guide to rental application fees, including a look at state regulations and application fee laws. 

Want to avoid application fees entirely? Send a screening request where applicants pay directly for screening services. Visit ezLandlordForms to start screening the easy way.

What Is a Rental Application Fee? 

A rental application fee is a non-refundable fee paid by applicants to cover the Landlord’s cost of processing a rental application. The fee generally covers: 

• Income and identity verification 
• Credit checks and a credit report 
• Eviction history reports and criminal records 
• Administrative expenses associated with placing a Tenant

A few basics of application fees to know: 

• They are usually non-refundable fees
• The fees are subject to state and local regulations
• They usually range from $25-$75

How Rental Application Fees Work 

While every property manager or owner has their own system and rental process, here’s a general overview of how new applicant fees work: 

1. The fees are paid by the prospective Tenant or applicant at the time the application is submitted. 
2. All renters over the age of 18 pay an application fee.
3. The rental application includes specifics about the fee, including the amount, whether or not it’s refundable, when it’s due, and what it covers. 
4. The fee is used to cover actual fees associated with screening and is not a source of profit for property management companies or landlords. 

Some best practices for Landlords implementing a screening fee are: 

• Be transparent about all fees before accepting an application. 
• Only charge a fee that is reasonably connected to the actual costs of screening
• Put application fees – including details about what the fee covers – in writing 
• Document receipt of the application fee and receipt of a completed application 
• Be consistent in requiring an application fee to avoid violating fair housing laws 

How Much Can a Landlord Charge for an Application Fee? 

The amount a Landlord can charge for an application fee varies from state to state. There are no federal laws regulating the amount of application fees; however, federal fair housing laws require Landlords to be fair and consistent when collecting an application fee. This means that if you charge a fee, you should require all Applicants to pay the same fee. 

While federal Landlord laws don’t set rental fee caps, some states and municipalities have specific limitations on how much a Landlord can charge.

As a general rule, application fees should be: 

• Reasonable 
• Based on the actual cost of processing a rental application 

Do Landlords Have to Refund Rental Application Fees? 

Usually, Landlords do not have to refund a rental application processing fee if an applicant is not approved or accepted for a rental unit vacancy. The fee is used to cover the expense of processing an application, so Landlords incur the costs regardless of whether the applicant moves into the rental unit. 

That said, every Landlord has different terms and policies. Plus, some areas have particular times for requiring refundable application fees. 

To avoid disputes and legal challenges, Landlords should: 

• Check local or state regulations on refunds to determine whether there are situations when a refund must be issued 
• Provide the applicant with clear terms about the fee and when it is and is not refundable 
• Act reasonably – for example, if an application is not processed for some reason and no expense is incurred, return the fee. 

Average Rental Application Fee Costs Across the U.S. 

The value of rental app fees varies from one location to the next. Across the U.S., most fees fall in the range of $35 to $75. The most common fee amount is $50, and recent data reports that the average ranges from $40 – $50. 

In more expensive markets with high demand for units, Landlords often require more extensive screening that can lead to application fees as high as $100 per applicant. 

The factors that have the biggest impact on the application review fee amounts are: 

• Local and state landlord laws 
• The type of screening that the Landlord does 
• The property management systems that the owner has in place
• Local rental market demand 

States With Fee Caps or Restrictions

When considering implementing an application fee, Landlords need to research Tenant rights and state regulations on fees. 

Here are some key state fee caps to know: 

• California: Fees may not exceed the actual costs of screening adjusted by the CPI. For 2025, this is $64.50. 
• Colorado: The fee cannot exceed actual screening costs, and applicants have the right to get a Portable Tenant Screening Report (PTSR) to use for multiple properties. 
• Delaware: Application fee may not exceed 10% of the monthly rent or $50, whichever is greater. 
• Massachusetts: Only licensed brokers can charge an application fee. 
• Maine: Fees may not exceed the actual cost of screening and may only be collected from an applicant once within a 12-month period. 
• Minnesota: Landlords may only collect fees equal to the actual cost of screening, and any extra must be refunded to the applicant. 
• New York: Application fees cannot exceed $20. 
• Virginia: May not exceed $50 plus the actual cost of screening. 
• Vermont: Application fees are not allowed. 
• Washington: Fees must be equal to the actual cost of screening. 
• Wisconsin: Application fees may not exceed $25, and applicants must be given a copy of their screening results. 

States Without Limits on Application Fees 

Most states do not have a statewide cap on application fees. The following states have no state regulations on screening fees that Landlords can collect: 

Keep in mind, even if your state doesn’t have regulations, check your city or county for regulations that could impact application fees or tenant rights. 

Legal Guidelines for Landlords Charging Application Fees

Good screening and property management systems can help Landlords avoid disputes and legal issues associated with application fees and screening practices. 

Here’s a compliance checklist for Landlords charging application fees: 

• Check local and state laws before charging an application fee. 
• Disclose the amount of the fee in writing, including specifics about what it covers and whether it’s refundable. 
• Ensure all fees are reasonable and connected to actual costs incurred. 
• Refund when applicable – for example, if you don’t run the screening report.
• Document receipt of the application and application fee.
• Don’t accept an application fee unless you have a vacant rental unit. 
• Pre-screen to ensure you only collect applications from applicants you are considering – for example, if you don’t allow pets, don’t collect an application and screening fee from an applicant with pets. 
• Be consistent in applying screening fees. 

Make Life Easy By Having Tenants Pay for Screening Reports  

Dealing with application fees can be a headache for Landlords, but it’s necessary to ensure adequate tenant screening and that Landlords have the information they need to make informed decisions about applicants. 

Want to avoid headaches, disputes, and additional work? Have your applicant pay directly for tenant screening services. This means Landlords don’t have to collect an application fee, and they get all the information they need at no cost to them. 

With ezLandlordForm’s screening services, you have the option to select “applicant pays.” Make your life – and tenant screening – a little easier. 

Send a screening request today with just an applicant’s name and email address.