Whether you’re a renter or a landlord, you’ll need to understand apartment application fees because these are among the most common costs you’ll have before you ever sign the lease. Whether you’re applying for your first apartment or managing rental properties yourself, understanding how these fees work can help you avoid surprises and stay compliant with state law.
While application fees are intended to cover the cost of screening prospective tenants, the rules governing what landlords can charge and when they can charge it are different from state to state. In some places, landlords can recover screening costs from applicants, but in others, there are caps on fees, required refunds, or prohibited costs.
TL;DR
Apartment application fees are typically non-refundable and used to pay for tenant screening, such as credit checks, background checks, eviction searches, and verifying identity. While the national average ranges from $35 to $50 per applicant, many places regulate how much landlords can charge and whether fees must be refunded if screening isn’t completed.
What Is an Apartment Application Fee?
An apartment application fee is a non-refundable charge that a landlord or property manager collects to process a rental application. It helps cover costs that come along with evaluating an applicant and determining whether they meet the property’s rental requirements.
Many renters searching online ask, “What is an application fee?” or “What is an administrative fee for an apartment?” These charges can seem similar, but they actually serve different purposes.
An application fee generally covers the actual screening process, including credit reports, criminal background checks, eviction history searches, identity verification, and address history verification. An administrative fee is often charged by larger apartment communities to cover leasing paperwork, file preparation, and administrative processing.
It’s important to remember that paying an application fee doesn’t mean you’ll be approved for a rental. It just means the landlord will review and process your application.
Why Landlords Charge Application Fees for Apartments
Every credit report, criminal background search, eviction check, and identity verification costs money, and if you’re a landlord, you’ll need to pay third-party screening providers. Application fees let you recover your expenses while staying fair and consistent with applicants.
Fees also help show that applicants are interested in renting the property, and reduce risks for landlords. A single problematic tenant can mean big financial losses with missed rent payments, property damage, legal expenses, and turnover costs. Even relatively minor tenant issues can quickly exceed $1,700 in expenses, while more serious situations may cost much more.
Application fees also offset some of the administrative work that comes with reviewing documents, contacting employers, verifying references, and making leasing decisions. In a lot of locations, landlord-tenant laws let landlords get back reasonable screening expenses from applicants, as long as those fees follow state-specific requirements.
How Much Is an Apartment Application Fee?
One of the most common questions renters ask is, “How much are apartment application fees?” Nationally, these fees typically range from $35 to $50 per applicant, but in competitive rental markets, they can reach $75 to $100 or more, depending on the property’s screening requirements.
Several factors influence the amount of these fees, including state and local regulations, property type and size, the selected screening package, local rental market demand, and administrative requirements.
Bigger apartment complexes may charge a separate fee for every adult listed on the lease, too, so a couple applying together might pay two application fees, since each person needs to be screened.
A lot of states require application fees to reflect actual screening costs. Some jurisdictions impose strict caps, while others require landlords to provide documentation showing how the fee amount was calculated.
When Do You Pay the Application Fee for an Apartment?
Many renters also ask, “When do you pay the admin fee for apartments?” In most cases, apartment application fees are collected when an applicant submits their rental application. Payment is typically required before the landlord begins processing the application or ordering screening reports.
Some states also have additional restrictions. California, for example, generally requires landlords to begin processing the application before collecting certain screening-related fees.
It’s important not to confuse the application fee for apartments with holding deposits. A holding deposit is usually paid after an applicant has been approved and wants to reserve the unit before signing the lease. In many cases, the deposit is later applied toward the security deposit or the first month’s rent.
Regardless of location, applicants should always request a receipt. Many states require landlords to provide documentation or itemized explanations of fees upon request.
Who Pays the Apartment Application Fee?
Generally, each adult who’s applying for a rental property has to pay an application fee as part of the rental application process. This fee is typically charged when the person applies, so that landlords or property managers can then use the money to pay for a background check through a screening company.
There are, however, cases where applicants will simply pay the screening company directly rather than pay an application fee. If you manage your applications in TenantCloud, you can choose how you want the screening fees to be applied, so the application is a smooth process for both you and your tenant.
What Does an Apartment Application Fee Cover?
Screening tenants manually for free can be labor-intensive and error-prone, and it may miss important details, which is why many landlords use software for their tenant screening process.
The application screening fee covers the cost of pulling rental screening reports, including:
- Tenant Background Checks
- Tenant Credit Checks
- Income Insights
- Local County Checks
If the application fee exceeds the actual cost of the screening service, the application fee may also be used by a landlord or property manager to cover their employee’s time and company resources used in the overall tenant screening process. In some states, laws dictate how much a landlord or property manager may charge for rental applications.
Apartment Application Fee Laws by State
California
Under AB 2493, landlords may collect an application screening fee only after they begin reviewing an application. The law also requires unused portions of the fee to be refunded when screening expenses are lower than the amount collected. This fee cap is adjusted annually based on changes to the Consumer Price Index (CPI), with updated limits published by the state.
Landlords must provide itemized receipts upon request and furnish applicants with copies of screening reports used during the review process. California Civil Code § 1950.6 also requires that screening fees reflect the actual out-of-pocket costs incurred in processing the application.
Colorado
Under HB19-1106, landlords may charge only fees that reasonably reflect actual screening costs and are prohibited from using application fees as an additional revenue source.
Colorado also adopted HB23-1099, which allows applicants to submit a portable screening report that can be used for multiple rental applications. This helps renters avoid paying repeated screening fees when applying for multiple properties.
Landlords must clearly disclose the purpose of any fee before collecting payment. Habitability disclosures and other required information must accompany the application process.
Delaware
Under Delaware Code § 5514(d), landlords may charge the greater of 10% of one month’s rent or $50, and must disclose this charge in writing before collection. This charge may only be used to cover legitimate screening-related expenses.
Delaware also limits situations in which landlords collect multiple application fees simultaneously while continuing to review earlier applicants for the same unit, to help ensure that fees remain connected to actual screening activity.
Illinois
Under the Illinois Tenant Screening Statute, landlords generally can’t charge a screening or application fee when an applicant provides a valid reusable screening report that satisfies state requirements.
Property owners may verify that the report is current and complete, but they can’t impose a separate verification fee solely for that purpose. The law was designed to reduce costs for renters who apply to multiple properties during a housing search.
Maine
Title 14, § 6030-H requires application fees to reflect the actual cost of tenant screening services, and landlords may not use the fee as a source of profit. Additionally, § 6030-J requires disclosure of all applicable fees before a lease agreement is executed.
Maine’s consumer-protection approach focuses on ensuring applicants understand exactly what charges they will encounter throughout the leasing process.
Massachusetts
Under Massachusetts General Laws Chapter 186, Section 15B(b), landlords generally can’t charge application fees to prospective tenants. Only licensed real estate brokers may charge certain fees during the application process, subject to applicable legal requirements.
The law was designed to prevent renters from paying repeated fees while competing for housing without any guarantee of securing a lease. As a result, many Massachusetts landlords absorb screening costs themselves or rely on tenant-provided screening reports.
Minnesota
Under Minnesota Statutes § 504B.173, application fees generally cannot exceed the actual cost of screening an applicant. Before collecting a fee, landlords must provide applicants with a written disclosure of the screening criteria that will be used during the review process.
If a landlord ultimately fails to conduct the screening or relies on outdated or already available information, the application fee may need to be refunded. Minnesota also discourages landlords from charging multiple applicants fees after a preferred applicant has already been selected for the unit.
New York
Under Real Property Law § 238-a, landlords generally can’t charge more than $20 per applicant for a rental application fee. The law was enacted as part of broader rent reform efforts designed to reduce financial barriers for renters.
Landlords must also waive the fee if an applicant provides a credit or background screening report completed within the previous 30 days that contains the information necessary for the landlord’s review. Applicants may request documentation showing how the fee was used, and landlords must be prepared to justify any screening charges they collect.
Philadelphia, Pennsylvania
Pennsylvania doesn’t impose a statewide cap on apartment application fees, but Philadelphia has adopted local regulations governing the practice. Under Philadelphia Bill No. 250045, application fees are generally limited to $50 or the actual cost of screening, whichever is lower.
Landlords may charge the fee only if screening reports are completed, and applicants are also entitled to receive copies of the background or credit reports generated during the screening process.
An additional protection limits landlords from repeatedly charging the same applicant. In many situations, an applicant may only be charged once within a 12-month period, even when applying to multiple properties owned by the same landlord or management company.
Rhode Island
Under Rhode Island Public Laws 308 and 309, landlords must clearly disclose all rental-related fees in either the rental agreement or a separate written disclosure document.
Application fees can’t be hidden in fine print or omitted from the leasing discussion. Instead, they must be presented alongside other major rental costs so applicants can fully understand the financial obligations associated with the rental.
Vermont
Under 9 V.S.A. § 4456a, landlords and their agents generally cannot charge prospective tenants any fee for processing a residential rental application. The prohibition extends to charges associated with background checks, credit reports, administrative processing, and similar screening activities.
Because application fees are prohibited, landlords in Vermont typically absorb screening costs themselves or utilize alternative screening procedures that comply with state law.
Virginia
Virginia Code § 55.1-1203 generally caps application fees at $50 per applicant, but landlords may be permitted to recover certain out-of-pocket third-party screening costs separately. For subsidized housing units, lower fee limits may apply.
Virginia law also includes refund protections. If an applicant is denied and the fee exceeds $35, landlords may be required to refund any amount above actual screening expenses within a specified timeframe. These rules are part of the Virginia Residential Landlord and Tenant Act.
Washington
Under Chapter 59.18 RCW, landlords generally may only charge fees that reflect the actual cost of screening. Before collecting a fee, landlords must provide applicants with a written disclosure of the screening criteria they intend to use.
If the screening process doesn’t occur, the fee must generally be refunded, and applicants are also entitled to receipts and copies of screening reports.
Washington, D.C.
Washington, D.C., imposes a cap on apartment application fees and requires landlords to maintain documentation supporting the charge. Under D.C. Official Code § 42-3505.10, landlords generally cannot charge more than $50 per applicant.
The cap applies broadly to residential rental properties throughout the District. If screening isn’t conducted after the fee is collected, landlords may be required to issue a refund.
Wisconsin
Under ATCP § 134.05 and Wisconsin Statutes § 704.085, application fees are generally limited to $25 per applicant.
Landlords must provide applicants with copies of screening reports upon request and maintain documentation supporting the fee amount charged. If screening expenses exceed the standard cap, landlords may need to provide evidence demonstrating the higher costs.
All Other States
Many states, including Texas, Florida, Georgia, and Arizona, don’t currently impose statewide caps on apartment application fees.
However, the absence of a cap doesn’t necessarily mean landlords can charge any amount they want. Courts and housing agencies often expect fees to remain reasonably related to actual screening costs.
Several states, including Connecticut, Nevada, and Oregon, require that fees be reasonable or tied to actual expenses, without establishing a specific dollar limit. Local city and county governments may also impose additional restrictions.
Are Apartment Application Fees Refundable?
In most states, apartment application fees are considered non-refundable once the screening process is complete, because landlords have already incurred costs for credit reports, background checks, eviction searches, and other screening services.
California, Minnesota, and Washington generally require landlords to return any unused portion of an application fee if the amount collected exceeds actual costs, and Virginia includes additional refund requirements when rejected applicants have paid fees that exceed certain thresholds.
Application Fee vs. Administrative Fee vs. Security Deposit
An application fee covers the cost of screening a prospective tenant and is usually paid when the rental application is submitted. It’s often non-refundable once screening begins.
An administrative fee is separate from screening, and apartment communities may charge administrative fees to cover paperwork processing, lease preparation, account setup, and other administrative tasks.
A holding deposit is a separate charge generally paid after an applicant has been approved and wishes to reserve the unit before signing a lease. In many cases, the holding deposit is later credited toward move-in costs.
A security deposit is collected when the lease is signed. Unlike application fees, security deposits are generally refundable at move-out, less any deductions for unpaid rent or property damage.
Common Application Fee Mistakes Landlords Should Avoid
Application fees can create legal issues when you fail to follow state requirements, and one of the most common mistakes is charging more than the actual screening costs in jurisdictions that prohibit profit from application fees. Overcharging can expose you to complaints, refunds, and potential legal liability.
Another common issue involves collecting fees from multiple applicants for the same unit while already processing another applicant who’s likely to be approved.
Documentation failures are also problematic, and some states require receipts, screening reports, itemized cost breakdowns, or written disclosures. Failure to provide these records can create compliance issues.
You should also avoid collecting fees without actually conducting a screening, as several states require refunds when no screening work is performed.
Finally, you should apply fees consistently. Selectively waiving fees for some applicants while charging others can create fair housing concerns and increase legal risk.
How to Charge Application Fees Compliantly
The best way to handle application fees is through a standardized, documented process. It’s essential to clearly disclose your screening criteria and application fees before collecting any payment. If you’re an applicant, you should know what information will be reviewed and how much the process will cost.
As a landlord, you should only charge what your state law allows. Also, make sure your fees reflect your actual screening expenses. Whenever required, you can provide receipts, itemized documentation, and copies of screening reports to show proof that you’re charging what you’re actually paying. Use the same fee structure for every applicant, as consistency helps reduce legal risk and demonstrates compliance with fair housing requirements.
Many landlords choose property management software platforms like TenantCloud to automate their fee collection, maintain documentation, and create a transparent audit trail. A documented and consistent process protects both you and your applicants.
Frequently Asked Questions About Apartment Application Fees
What is an apartment application fee?
An apartment application fee is a charge collected by a landlord or property manager to cover the cost of reviewing a rental application. The fee typically covers credit checks, criminal background screenings, eviction history searches, identity verification, and administrative processing for evaluating a prospective tenant.
How much is an average apartment application fee?
Most apartment application fees cost $35 and $50 per applicant. In competitive rental markets or properties requiring extensive screening, fees can be closer to $75 or even $100. In some states, there are caps on how much a landlord can charge, no matter what the current market is like.
When do you pay the application fee for an apartment?
You’ll generally pay this fee when you turn in your rental application, and most landlords require it before they start to review your documents or order a screening report. In some states, there are restrictions on when fees can be collected during the application process.
Are apartment application fees refundable?
Generally, application fees aren’t refundable once screening has been completed. However, some states require refunds when landlords collect more than the actual cost of screening or fail to perform the screening services for which the fee was collected.
Can a landlord charge an application fee in any state?
No, some states restrict or prohibit apartment application fees. Massachusetts and Vermont, for example, significantly limit or prohibit application fees in many residential rental situations. Landlords should always verify state and local requirements before collecting fees.
What's the difference between an application fee and an administrative fee?
An application fee for apartment leasing is for tenant screening costs like background checks and credit reports. Administrative fees are separate and used by bigger apartment communities for paperwork, lease preparation, and processing. They’re not the same as a security deposit, which is generally refundable at move-out.
