What Is a Rental Application Fee? (And Is It Refundable?)

The short answer

Rental application fees cover credit and background checks. Learn how much they cost, when they are refundable, and how to avoid paying multiple times.

When you apply for an apartment, most landlords charge a rental application fee. These fees cover the cost of running your background check and credit report. Here is everything you need to know about how they work, how much they cost, and whether they are refundable.

What Is a Rental Application Fee?

A rental application fee is a charge collected by a landlord or property management company when you submit a rental application. The fee covers the cost of:

• A credit check (hard pull from Equifax, Experian, or TransUnion VantageScore 4.0)
• A background check (criminal history, eviction records)
• Administrative processing of your application

Application fees are typically non-refundable — even if the unit is rented to someone else.

How Much Do Rental Application Fees Cost?

Application fees vary by landlord and location, but typical ranges are:

• Individual landlords: $25–$50 per application
• Property management companies: $50–$100 per application
• NYC (regulated): Capped at $20 by law
• California: Capped at actual screening cost (~$50–$65)

When applying to multiple apartments, fees add up fast. Applying to 5 apartments could cost $250–$500 in fees alone.

Are Rental Application Fees Refundable?

In most cases, rental application fees are non-refundable, regardless of the outcome. However:

• California: Landlords must refund the unused portion if they don't run a credit check.
• New York: Fees above $20 are not permitted for most rentals.
• Washington state: Landlords must provide a screening report and refund if they do not check.
• Colorado (HB25-1236): Landlords are required to accept a PTSR-compliant portable screening report like the Settl Verified Passport. When you provide one, landlords cannot charge a separate application fee for the screening they would have run themselves.

Always ask before paying: "Is this fee refundable if I am not selected?"

How to Reduce Rental Application Fees

The best way to reduce application fees is to apply strategically:

• Pre-screen yourself: Know your credit score and rental history before applying. Only apply to units you qualify for.
• Get pre-verified with Settl: A Settl Verified Passport ($99 one-time, valid 30 days) gives landlords everything they need upfront in a single link — biometric identity, bank income ceiling, rent payment history, payroll and employer verification, landlord references, a soft-pull credit check (TransUnion VantageScore 4.0, no score impact), criminal background, and eviction history. Landlords open it for free with no account or setup required. In Colorado, landlords are legally required to accept it under HB25-1236, and cannot charge you an additional screening fee when you provide it.
• Ask for fee waivers: In slow rental markets, landlords sometimes waive fees to attract applicants.
• Apply to multiple units at the same property: Some management companies charge one fee for multiple units in the same building.

What Landlords See After Running an Application

A standard rental application report includes:

• Your full credit report and score (hard inquiry)
• Eviction records (county and national databases)
• Criminal background check (varies by jurisdiction)
• Identity verification

By contrast, a Settl Verified Passport provides all 8 verified data layers — including a soft-pull TransUnion credit check, verified income as a rent ceiling (not your exact salary), employment verification via Argyle, and more — without a hard inquiry on your credit file.

Tips Before Paying a Rental Application Fee

1. Confirm the unit is still available and is not already leased.
2. Ask what the fee covers (credit check? background check? admin?).
3. Ask if there is a cap per state law in your area.
4. Get a receipt or written confirmation that the fee was paid.
5. Ask when you will receive a screening decision.
6. In Colorado, ask if they accept a Settl Verified Passport — they are legally required to under HB25-1236.

Skip the Fees with Settl Pre-Verification

Instead of paying $50–$100 per application across multiple landlords, get verified once with Settl. Your Settl Verified Passport costs $99 one-time — and your shareable link works for 30 days across any number of landlords. No repeated application fees. No repeated screenings. Apply anywhere, pay once. Renew for just $39 if you need more time. For households with 2+ applicants, the Household Passport is also $99.

Ready to get your Settl Verified Passport?

Verified identity, income, and stability, all in one report landlords trust. Apply anywhere, pay once.

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