Applying for an apartment usually comes with a fee. Landlords charge application fees to cover the cost of running credit checks, criminal background screenings, employment verification, and rental history checks. For renters who apply to several apartments in a competitive market, these fees add up fast, sometimes reaching hundreds of dollars before a single lease is signed.
The good news is that many states regulate these fees. Some cap the amount a landlord can charge, others require landlords to refund the fee if they never run a screening, and a few require written notice explaining exactly what the fee covers. Knowing your state rules helps you spot overcharges, ask the right questions, and protect your money during the apartment hunt.
Why Landlords Charge Application Fees
A typical tenant screening package is not free. Landlords pay credit bureaus and screening companies for each report they pull, and staff time goes into verifying employment and contacting prior landlords. Application fees pass those costs to applicants. In most states, landlords are allowed to charge the fee only for actual screening costs, and they cannot use it as a profit center.
Typical fees range from $30 to $75 per adult applicant in most markets, though amounts vary widely. In high-demand cities, some buildings charge $100 or more. When two or three adults apply together, each one usually pays a separate fee because each one needs a separate screening. Ask upfront whether the fee is per person or per household so you can budget accurately.
Application fees are different from holding deposits, security deposits, and move-in fees. A holding deposit takes a unit off the market while your application is reviewed and may be credited toward your security deposit or first month’s rent. An application fee is nonrefundable in most states once the screening is performed, which is why you should never pay it before you have seen the unit and read the lease terms.
States That Cap Application Fees
A growing number of states set a hard ceiling on application fees. California caps the fee at an amount adjusted annually for inflation, roughly $65 to $70 in recent years, and requires landlords to give applicants a receipt and a copy of any credit report used in the decision. Landlords in California must also refund any unused portion of the fee.
New York limits fees for most rentals to $20, one of the lowest caps in the country, following its 2019 rent law reforms. Minnesota caps fees at a reasonable amount tied to actual screening costs and requires disclosure. Massachusetts takes a different approach and bans most upfront application fees entirely, with narrow exceptions for licensed brokers and certain credit check costs.
Other states with notable rules include Washington, which requires landlords to disclose the screening criteria and costs in advance and provide an adverse action notice if the application is denied based on the screening. Oregon limits fees and requires landlords to wait before charging a second fee to the same applicant. Vermont and several other states prohibit landlords from charging a fee before disclosing whether the unit is actually available.
States With Fewer Restrictions
Many states have no specific statute limiting application fees. In those states, the general standard is that the fee must be reasonable and reflect actual screening costs. A landlord in Texas, Florida, or Georgia who charges $50 for a standard screening is unlikely to face a legal challenge, while a landlord charging $300 without explanation could be vulnerable to a claim of unfair practices.
Even where state law is silent, local ordinances sometimes step in. Cities with strong tenant protections may cap fees or require disclosures that the state does not. Always check both state and city rules before you apply. A quick search of your city housing authority website usually answers the question in minutes.
Regardless of your state, landlords must comply with the federal Fair Credit Reporting Act. If your application is denied because of information in a credit or background report, the landlord must give you an adverse action notice that names the reporting agency and explains your right to a free copy of the report and to dispute errors. This federal protection applies everywhere.
What Landlords Must Disclose
In regulated states, landlords typically must tell you in writing what the fee covers, provide a receipt, and return any amount not actually spent on screening. Some states require the landlord to disclose the screening criteria, such as minimum credit score or income multiple, before accepting your fee. This prevents the frustrating scenario where you pay for a screening you had no chance of passing.
You can protect yourself in any state by asking three questions before paying. First, what does the fee cover and is any of it refundable. Second, what are the screening criteria, including income, credit, and rental history standards. Third, is the unit actually available on your target move-in date. A landlord who cannot answer these clearly is a landlord to be cautious about.
Keep records of every fee you pay. Save receipts, screenshots of online payments, and any written disclosures. If a landlord charges more than your state allows, or keeps a fee without running a screening, those records are the evidence you will need to demand a refund or file a complaint with your state attorney general or local housing agency.
Portable Screening Reports
One way to save money is to use a portable screening report. A growing number of states, including Washington and several others, require landlords to accept a comprehensive, reusable screening report that you provide, as long as it is recent and from an approved source. This lets you pay for one screening and share it with multiple landlords instead of paying every time.
Even where not required by law, some landlords and property management companies accept third-party screening reports. Ask before you pay. Tenant screening platforms that offer portable reports usually charge the applicant once, around $30 to $50, and generate a report you can send to any participating landlord. In competitive markets, arriving with a report in hand can also speed up your application.
Watch out for scams tied to application fees. Never pay a fee for a listing you have not verified, never wire money or pay with gift cards, and be suspicious of landlords who pressure you to pay before a showing. Legitimate landlords accept checks, cards, or established payment platforms and will show you the unit or at least provide verifiable proof the property exists before asking for money.
Final Thoughts
Application fees are a normal part of renting, but they are not a blank check for landlords. State caps, disclosure rules, and refund requirements protect renters from overcharges and unfair practices. Before you apply, look up your state rules, ask what the fee covers, and confirm the screening criteria so you only pay for applications you have a real chance of winning.
If a landlord violates the rules, you have options. Start by asking for a refund in writing, citing the specific statute. If that fails, your state attorney general, local housing agency, or a tenant advocacy organization can help you escalate. A little knowledge of the law turns the application fee from a sunk cost into a transaction you control.