Can my landlord charge a non-refundable application fee?
Most states allow application fees to cover screening costs (credit check, background check), but many cap the amount. Some states require the fee to reflect actual screening costs only.
Application fees have become a revenue stream for some landlords and property management companies. They charge $50-100 per applicant, run a $10 credit check, and pocket the difference. Some states have cracked down on this practice.
The legitimate purpose of an application fee is to cover the cost of running a credit check, background check, and verifying employment/rental history. These checks typically cost $25-50 combined. Fees significantly higher than that should raise a red flag.
Some things to watch for: landlords who keep collecting applications (and fees) after they've already accepted a tenant, landlords who charge application fees for units that aren't actually available, and landlords who charge both an "application fee" and a separate "screening fee." In many states, these practices are illegal.
How This Works State by State
The rules vary depending on where you live. Here's how the biggest states handle it.
California caps rental application fees at $62.02 (2024) under Cal. Civ. Code § 1950.6, covering only actual screening costs. Landlords must provide receipts.
Texas has no statutory cap on application fees under Tex. Prop. Code § 92.352, but fees must relate to actual screening costs.
New York caps rental application fees at $20 under N.Y. Real Prop. Law § 238-b, one of the lowest caps in the country.
Florida has no statutory cap on rental application fees. Fees are governed by general contract law and reasonableness standards.
Under Chicago RLTO § 5-12-050, application fees must cover only actual screening costs. Landlords cannot charge fees without performing screening.
| State | Rule | Statute |
|---|---|---|
| California | California caps application screening fees at $62.02 (2024, adjusted annually for CPI). The fee can only cover actual costs of screening. Landlords must provide an itemized receipt. | Cal. Civ. Code § 1950.6 |
| Texas | Texas allows application fees with no statutory cap. However, the fee should reasonably relate to the cost of screening. Landlords must refund the fee if they don't actually run a screening. | Tex. Prop. Code § 92.352 |
| New York | New York caps application fees at $20 since the 2019 Housing Stability and Tenant Protection Act. This covers background and credit checks combined. | N.Y. Real Prop. Law § 238-b |
| Florida | Florida has no statutory cap on application fees. Fees should reasonably relate to actual screening costs. Some counties and cities may have local regulations. | No specific statute; general contract law applies |
| Illinois | Illinois has no statewide cap on application fees. Chicago requires that fees cover only actual screening costs and prohibits landlords from re-using old screening results to charge new fees. | Chicago RLTO § 5-12-050 |
●Frequently Asked Questions
Frequently Asked Questions
Can my landlord charge a non-refundable application fee?
Most states allow application fees to cover screening costs (credit check, background check), but many cap the amount. Some states require the fee to reflect actual screening costs only.
Can my landlord charge me excessive late fees?
Late fees must be reasonable and are capped in many states. A late fee that's disproportionate to the landlord's actual cost of the late payment may be unenforceable as a "penalty" rather than legitimate damages.
Can my landlord charge me mandatory amenity fees on top of rent?
Yes, in most states — if the fees are disclosed in your lease. But "junk fees" that aren't clearly disclosed before signing or that bundle unwanted services are facing increasing regulation and legal challenges.
Can my landlord charge me monthly pet rent?
Yes, in most states. Monthly pet rent is a recurring charge for having a pet and is separate from a pet deposit. It's generally legal if it's in your lease, though landlords cannot charge pet rent for service animals or emotional support animals.
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DepositHawk is not a law firm and does not provide legal advice. Information and documents are for informational purposes only. No attorney-client relationship is created. Consult a licensed attorney for advice specific to your situation.