Rental application screening fees have become a common practice in the rental industry. These fees can range from $20 to $100 or more per applicant, depending on the property management company or landlord. While screening fees can be a necessary evil to help landlords cover the costs of background checks and credit reports, they can also be a burden for potential renters.
In this article, we will explore five ways to handle rental application screening fees, from the perspective of both landlords and renters.
Understanding Rental Application Screening Fees
Before we dive into the ways to handle rental application screening fees, it's essential to understand what these fees cover. Rental application screening fees typically include:
- Background checks
- Credit reports
- Income verification
- Rental history checks
These fees help landlords assess the risk of renting to a particular applicant. However, they can also be a barrier for potential renters, especially those who are low-income or have poor credit.
Way 1: Charge a Reasonable Fee
As a landlord, it's essential to charge a reasonable fee for rental application screening. This fee should cover the actual cost of the background check, credit report, and other screening services. Charging too much can deter potential renters from applying, while charging too little may not cover the costs.
A reasonable fee is typically around $20 to $50 per applicant. However, this can vary depending on the location, property type, and screening services used.
Waiving or Reducing Fees for Qualified Applicants
One way to handle rental application screening fees is to waive or reduce them for qualified applicants. This can be a win-win for both landlords and renters. Landlords can attract more qualified applicants, while renters can save money on application fees.
For example, landlords can offer to waive the application fee for applicants who have a high credit score, stable income, and a good rental history.
Way 3: Offer a Discount for Multiple Applicants
Another way to handle rental application screening fees is to offer a discount for multiple applicants. This can be beneficial for renters who are applying with a partner or multiple roommates.
For example, landlords can offer a discounted application fee of $30 for two applicants, instead of the standard $50 per applicant.
Providing Transparency on Screening Fees
Transparency is key when it comes to rental application screening fees. Landlords should clearly disclose the fee amount, what it covers, and how it will be used.
This can be done by including a clear and concise statement on the rental application form or website. For example:
"Our rental application screening fee is $50 per applicant. This fee covers the cost of background checks, credit reports, and other screening services. We use this fee to assess the risk of renting to a particular applicant and to ensure that our properties are safe and secure for all tenants."
Way 5: Considering Alternative Screening Methods
Finally, landlords can consider alternative screening methods that don't involve charging a fee to applicants. For example, landlords can use free or low-cost screening services, such as online rental applications and tenant screening platforms.
These alternatives can help reduce the cost of screening and make the rental application process more affordable for potential renters.
Gallery of Rental Application Screening Fees:
FAQ:
What is a rental application screening fee?
+A rental application screening fee is a charge imposed by landlords or property managers to cover the cost of background checks, credit reports, and other screening services.
How much can landlords charge for rental application screening fees?
+Landlords can charge a reasonable fee for rental application screening, typically around $20 to $50 per applicant.
Can landlords waive or reduce rental application screening fees?
+Yes, landlords can waive or reduce rental application screening fees for qualified applicants, such as those with high credit scores or stable income.