Do You Get an Apartment Application Fee Back?

An apartment application fee is a payment collected by landlords or property managers to cover the administrative costs associated with processing a rental application. These costs typically include running credit checks, background checks, and verifying rental history. The question of whether these fees are refundable is not always straightforward, as the answer depends on various factors. Generally, application fees are non-refundable, but there are specific situations where a refund may be warranted.

Circumstances for Fee Return

Applicants may be entitled to a refund under certain conditions. If a landlord withdraws the unit from the market after accepting an application fee, or if the unit becomes unavailable due to the landlord’s actions before the application is fully processed, a refund may be due. Similarly, if the landlord fails to perform the services for which the fee was charged, such as not running a background or credit check, the fee’s purpose is not fulfilled, and it might be refundable.

Some state and local regulations mandate refunds under specific circumstances. If a landlord charges more than the legally defined maximum for an application fee, the excess portion may need to be returned. Certain jurisdictions require refunds if the landlord accepts multiple applications for the same unit and approves a different applicant without processing others, or if the fee exceeds the actual cost of the screening. If the non-refundable nature of the fee was not clearly disclosed in writing before it was collected, or if the terms for retention were vague, applicants might have grounds for a refund.

Circumstances for Fee Retention

Landlords are typically allowed to keep the application fee in several common scenarios. If an applicant withdraws their application after the landlord has already begun the processing, the fee is generally retained because the landlord has incurred costs for administrative work and initial checks.

The fee is also usually considered earned if the applicant is denied based on pre-disclosed criteria, such as an unsatisfactory credit history, insufficient income, or negative rental history. In such cases, the fee covers the cost of performing the necessary checks, even if the applicant does not meet the landlord’s qualifications. If the application fee was clearly and prominently disclosed as non-refundable in writing before the applicant paid it, and the landlord completed the application processing, the fee is typically retained.

How to Request a Refund

If an applicant believes they are entitled to a refund, the first step is to review all documentation provided by the landlord, including the application agreement, receipts, and any disclosures regarding application fees. This review helps confirm the terms under which the fee was paid.

The next step involves drafting a formal written request for the refund. This request should be clear and concise, including the applicant’s name, the application date, the property address, the amount of the fee, and a brief, factual explanation of why a refund is believed to be due, referencing the specific circumstances. For example, if the landlord failed to run a background check, that should be stated. It is beneficial to gather supporting documents, such as copies of the application, payment receipts, or relevant communication.

Sending the refund request via certified mail with a return receipt requested, or via email with a read receipt, is advisable. Allowing a reasonable timeframe, typically seven to fourteen business days, for a response is appropriate. If no response is received within that period, a follow-up communication may be necessary. Should the landlord refuse a legitimate refund request, exploring options such as contacting consumer protection agencies, local housing authorities, or consulting with legal aid services for guidance on potential next steps, including small claims court, could be considered.