Application fees are often non-refundable if they cover actual screening costs, but many states cap them or require refunding any unused portion. Excessive or fake fees may be recoverable.
Application fees are meant to cover the real cost of screening you — credit and background checks. Many states cap what a landlord can charge, require the fee to reflect actual costs, or mandate refunding any unused portion, and some require a receipt or itemization. A landlord who charges a large fee with no real screening, collects fees from many applicants for one unit, or exceeds a state cap may be charging improperly. Know your state’s rule before assuming a non-refundable fee is legitimate.
It depends on the state — some require refunding unused portions or cap the fee; others allow non-refundable fees that cover actual screening costs.
Several states cap application fees or tie them to actual screening costs. Check your specific state and city rules.
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