Apartment Application Fees in Minnesota — What's Legal
Minnesota limits application fees to the landlord's actual screening costs under Minn. Stat. § 504B.173.
Fees limited to actual screening costs
Minnesota limits application fees to the landlord's actual cost of screening. There is no fixed dollar cap, but the landlord must provide a receipt under Minn. Stat. § 504B.173.
•The Law
What Minnesota Law Says About Application Fees
Minnesota does not set a dollar cap but requires the fee reflect actual screening costs. Must refund if no screening is performed. Written screening criteria required upfront.
•Refund Rules
When Can You Get a Refund?
Landlord must refund application fee if they do not perform a screening. Must provide a written explanation of the screening criteria before accepting the fee.
•What's Legitimate
What Should an Application Fee Actually Cover?
- Credit check: $10-$15 (actual cost from credit bureaus)
- Background check: $15-$25
- Verification of employment and rental history: $5-$10
- Administrative processing: $5-$10
- Reasonable total: $35-$60
A typical tenant screening costs landlords $30-$50 for credit, background, and reference checks combined. Application fees significantly above this range may include profit for the landlord.
•Red Flags
Red Flags to Watch For
- Application fee over $75 with no breakdown of costs
- Landlord refuses to provide a receipt
- Fee collected before the unit is actually available
- Multiple applications accepted for the same unit (collecting fees from many applicants)
- Non-refundable "holding deposit" disguised as an application fee
- Fee charged but no screening actually performed
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●Frequently Asked Questions
Frequently Asked Questions
How much can a landlord charge for an application fee in Minnesota?
Minnesota limits application fees to the landlord's actual screening costs under Minn. Stat. § 504B.173. The landlord must provide a receipt.
Can I get my application fee refunded in Minnesota?
Yes, in some cases. Landlord must refund application fee if they do not perform a screening. Must provide a written explanation of the screening criteria before accepting the fee.
What should an application fee cover?
A legitimate application fee should cover the cost of a credit check ($10-$15), background check ($15-$25), and verification of rental history. If the fee significantly exceeds these costs, the landlord may be pocketing the difference.
What are red flags when paying an application fee?
Watch out for: fees over $75 in states with no cap, landlords who refuse to provide a receipt, collecting fees for units that are not actually available, charging a fee without performing a screening, and charging non-refundable "holding deposits" disguised as application fees.
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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.