Application Fee

A rental application fee is the non-refundable charge a landlord collects to run your background and credit checks — and it typically runs $25-$75 per applicant, though some landlords push well past $100.

What It Covers

The fee pays for a credit report ($15-$30 from the bureaus), criminal background check, eviction history search, and sometimes employment and rental verification. The actual cost to the landlord is usually $30-$50 total. Anything significantly above that is profit, which is why some states have stepped in with caps.

State Limits on Application Fees

California caps application fees at roughly $60 (adjusted annually for inflation). New York banned application fees entirely in 2019 — landlords can only charge $20 for a credit check. Other states like Wisconsin and Minnesota have their own limits. Most states, though, have no cap, which is how you end up with $100+ application fees in hot markets.

If you’re applying to multiple apartments, those fees add up fast. Five applications at $50 each = $250 spent before you’ve signed anything. Ask if the landlord will accept a recent credit report you provide yourself (some will, many won’t).

Red Flags

Be suspicious of application fees above $75 — the landlord might be profiting off applications rather than seriously vetting tenants. Also watch out for landlords who collect application fees from dozens of applicants for one unit. Legitimate landlords stop collecting once they have a few qualified candidates.

Always get a receipt for your application fee. In some states, landlords must provide an itemized breakdown of what they spent if you request it. If they refuse to show what the fee covered, that’s a red flag. Check the tenant guide for more on your rights during the application process.