State-by-State Application Fee for Rental Rules (2025 Updated)

As a landlord or tenant, understanding the application fee for rental is crucial in 2025. This fee has become a common step in the tenant screening process, but many people still ask questions such as: What is an application fee for apartments? or Are rental application fees refundable? The answer often depends on your state laws, the type of property, and how landlords choose to collect fees.

This guide provides everything you need to know about the average apartment application fee 2025, how landlords collect it, and what legal rules apply across states.

What Is a Rental Application Fee?

A rental application fee is a non-refundable payment charged by landlords or property managers to process a tenant’s application. It covers costs associated with tenant screening, which usually include:

• Background checks
• Credit reports
• Employment verification
• Administrative time (sometimes)

In 2025, application fees for rentals are still common, though they are increasingly regulated by state and local laws. These fees typically range from $25 to $75 per applicant, though in high-demand cities, they can exceed $100. Importantly, paying an application fee for rental does not guarantee that you’ll get the unit, only that your application will be reviewed.

Landlords use the fee to evaluate whether a potential tenant meets the financial and behavioral criteria for the lease. However, not all landlords charge the fee, and in many states, there are limits to how much can be charged

What is an Application Fee for Apartments?

An application fee for apartments is a specific type of application fee for rental charged when applying for apartment units (privately owned buildings, managed communities, or corporate complexes).

This fee typically covers the cost of verifying your identity, checking your rental history, confirming employment and income, and reviewing your credit report. Many apartment complexes outsource tenant screening to third-party services, which is one reason fees may vary.

In apartment settings, especially in competitive housing markets, multiple applicants may be screened simultaneously. It’s common for apartment managers to charge each adult applicant separately. In these cases, the application fee for rental may be duplicated across all tenants listed on a single lease.

What is an Application Fee for Renting?

The application fee for rental applies to all housing types: apartments, single-family homes, duplexes, and shared housing. Regardless of property type, landlords use the fee to offset tenant screening costs and protect themselves from risk. 

In many states, landlords are required to provide receipts or itemized documentation of how the fee was used. Others restrict charging more than what it actually costs to screen the tenant. In some cases, when the landlord never processes your application, you may be entitled to a full refund.

Is the Application Fee for Rental Legal?

Yes, rental application fees are legal in most U.S. states, but they are regulated, and the rules can differ a lot from one state to another. While the fee itself isn’t illegal, what can make it problematic is overcharging, misusing the funds, or charging fees without actually screening the applicant.

Some states (like California, Minnesota, and New York) cap the amount that can be charged, often linking it to the actual cost of a background check. Others require landlords to return unused fees or provide written documentation of how the money was spent.

For example:

• California limits the application fee for rental to about $65 in 2025.
• Massachusetts prohibits landlords from charging any application fee for rental unless licensed as brokers.

• Texas allows landlords to charge, but tenants must be informed of the screening criteria before payment.

All in all, the legal landscape is shifting, especially as housing affordability becomes more politicized. It’s wise for both landlords and tenants to check their local laws or consult legal counsel if unsure.

Why Do Landlords Charge an Application Fee?

Landlords charge an application fee for rental mainly to cover the costs of screening tenants and to manage the rental process fairly. Here are the key reasons:

• Cover screening costs – Pays for credit reports, background checks, eviction history, and reference verification.
• Filter serious applicants – Prevents casual or non-serious renters from applying, saving landlords time.
• Reduce risk – Helps landlords choose reliable tenants and avoid late payments or property damage.
• Administrative expenses – Offsets the time and effort spent processing paperwork and verifying information.
• Regulated by law – Legal in most states, but fee limits and rules vary (e.g., capped at $20 in New York, banned in Massachusetts and Vermont).
• Not a guarantee – Paying the fee only ensures application review, not approval.

In short, application fees help landlords cover real costs, filter applicants, and reduce risk, but the exact rules depend on state laws.

How Much Is a Rental Application Fee? Typical Costs and Variations

In 2025, the application fee for rental usually ranges from $30 to $75 per applicant, though in busy markets, it can exceed $100. The exact amount depends on several factors, including local laws, the landlord’s screening process, and the type of property you’re applying for.

The Average Rental Application Fees

Across the U.S., the average rental application fee tends to fall between $40 and $60 per person. This is usually enough to cover the cost of a basic credit report, background check, and administrative review. In many cases, tenants are asked to pay this fee upfront, and it’s usually non-refundable, even if the application is denied or the unit is rented to someone else.

5 Factors That Influence the Fee

So why might your application fee for rental be $45 in one town and $95 in another? Find out the key factors that influence the cost:

• Location and Local Laws: States like California and New York often have caps, while others allow landlords to charge market rates. Some cities also add their own rules on top of state law.
• Property Type: Large apartment complexes that outsource screening to tenant verification services may pass higher costs onto applicants. Smaller landlords may charge less or nothing at all.
• Number of Applicants: If you’re applying with a partner or roommate, many landlords will charge a separate fee for each adult.
• Level of Screening: More thorough checks, especially those involving nationwide criminal databases or landlord reference interviews, can increase costs.
• Market Demand: In high-demand markets, application fees are often higher simply because they can be. It’s legal in most states, but not always renter-friendly.

These charges are some of the key elements that cause a huge rise in moving costs in 2025, and more so during the peak moving season that runs from May to August. In relation to this subject, we were mentioned in a Rent article. Check out the featured article: Understanding 2025 Moving Costs | Rent. to explore our insights.

State-by-State Guide to Rental Application Fees in the U.S.

Rental fees vary by state. Before paying any application fee for rental, check your state-specific lease agreement rules

States with Specific Limits or Restrictions on Application Fee for Rental

While most U.S. states allow landlords broad discretion in setting application fees, several have introduced specific limits, refund requirements, or transparency rules to protect renters.

States that Impose Limits on Application Fees

These states do not ban application fees but set a legal cap or require that charges match the actual cost of screening. Tenants in these states benefit from clearer rules and refund protections.

1. California

California has some of the nation’s strictest rules on rental application fees. As of 2025, landlords can charge a maximum application fee of approximately $65, but this number is adjusted annually based on the Consumer Price Index. The fee must reflect the actual cost of screening (background checks, credit reports, and administrative time). Landlords are required to provide receipts on request and must refund any unused portion if the screening is not completed.

Under AB 2493, landlords can process applications in two ways. They may use a first-come, first-served system, charging only when they begin reviewing an application and refunding unused fees within seven days. Or they may choose applicants more flexibly, but then they must refund all other applicants’ fees within seven days of selecting a tenant or within thirty days of the application date.

Landlords must also give applicants a copy of any credit report used within seven days (or three days if requested) and cannot charge an application fee if no rental unit is available, unless the applicant agrees in writing. Violating these rules—by overcharging or failing to refund—can be considered a breach of California’s Civil Code.

2. Colorado

In Colorado, landlords are permitted to charge an application fee for rental, but the law HB23-1099 requires that it reasonably reflect actual expenses incurred during the tenant screening process.

They cannot profit from the application process, and each fee must match the cost of services used, such as credit reports or background checks.

3. Delaware

Delaware sets a clear cap: landlords may charge either 10% of the monthly rent or $50, whichever is greater, as a rental application fee (Delaware Code Title 25 § 5514(d)). This law is designed to scale fairly with the cost of rent, making luxury rentals slightly more expensive to apply for while keeping fees low for modest units. Landlords must provide written disclosure of the fee and cannot collect multiple application fees for the same property while still reviewing previous applicants.

4. Maine

In Maine, the application fee for rentals is not directly capped, but landlords must follow consumer protection laws that prohibit deceptive practices (Maine Public Law Chapter 346, 2023). This means landlords must clearly disclose what the fee is for and are encouraged (though not required) to keep it in line with actual screening costs. Though not as strict as other states, Maine places strong emphasis on transparency and fairness in the landlord-tenant relationship.

5. Minnesota

Minnesota offers renters significant protection. Landlords must disclose their screening criteria in writing before collecting an application fee (Minnesota Statutes § 504B.173). If the landlord does not run the background check or uses an outdated report, the application fee must be refunded. The state also discourages landlords from collecting multiple fees if they have already selected a preferred applicant. Failing to follow these rules can result in financial penalties for landlords.

6. New York

Under New York’s rent reform laws, landlords can charge a maximum of $20 as an application fee (New York Real Property Law § 238-a) and must provide a copy of the screening report or a receipt from the screening service to justify the charge.

7. Virginia

Virginia landlords may charge up to $50 per applicant for a rental application (Virginia Code § 55.1-1203). Landlords are not allowed to profit from application fees, and they must process applications in the order received to avoid taking multiple fees for a single vacancy. For subsidized housing units, the maximum application fee is capped at $32.

8. Washington

Washington State requires landlords to disclose application fees upfront and to only charge what it costs to screen the applicant, according to WA’s Landlord-Tenant laws. They must also inform applicants of the screening criteria before collecting any fee.

If no screening takes place, the fee must be fully refunded.

9. Wisconsin

Wisconsin allows landlords to charge an application fee, but it’s capped at $20 per applicant (Wisconsin Statutes § 704.17). Any amount above that is considered illegal unless the landlord can prove that their actual screening costs were higher, and even then, written documentation is required.

States that prohibit application fees entirely

Some states have gone further by banning rental application fees altogether. In these places, landlords must absorb the cost of screening or rely only on reports provided by applicants.

1. Massachusetts

In Massachusetts, it is illegal for a landlord to charge a prospective tenant an application fee (Massachusetts General Laws Chapter 186, § 15B). This prohibition is designed to prevent renters from paying multiple fees with no guarantee of securing a property. However, licensed real estate brokers may still charge a fee for their services.

2. Vermont

Vermont law explicitly prohibits landlords or their agents from charging any application fees for residential rental units (9 V.S.A. § 4456a). This includes fees for background checks, credit reports, or any administrative costs associated with processing an application. The law aims to remove a financial barrier for tenants seeking housing.

Some localities, even within states that don't have a statewide ban, have passed their own ordinances to prohibit these fees. It's always a good practice to check both state and local laws for the most accurate information.

How application fees are applied by landlords?

When you apply for a rental property, landlords may charge an application fee. This is a non-refundable payment intended to cover the screening process, helping landlords assess the reliability and suitability of prospective tenants. While the fee is primarily used to evaluate credit, criminal, and rental history, state laws regulate how much landlords can charge and require transparency in how the fee is applied.

Common Uses of Rental Application Fees

The majority of costs incurred from the checks include:

• Credit Check: This fee covers the cost of accessing your credit report, which helps the landlord evaluate your financial trustworthiness.
• Background Check: This fee pays for a check of your criminal history to ensure the safety of the property and the community.
• Rental History Check: A portion of the fee may be used by the landlord to contact your previous landlords to verify your rental history and behavior as a tenant.
• Administrative Fees: Some landlords may use a part of this fee to cover the administrative costs and time spent on processing the application.

This structure ensures that the application fee for rental is used transparently to protect both landlord and tenant interests. If you're applying for subsidized housing or Section 8 units, see this helpful post on how to screen Section 8 tenants.

Legal Regulations and Limits on Application Fees

Many states and municipalities in the U.S. have specific rules regarding application fees:

• Fee Caps: Some states impose a maximum limit on how much a landlord can charge. For example, California limits application fees to the actual cost of screening and requires itemized receipts.
• Non-Refundable Restrictions: While application fees are usually non-refundable, landlords must ensure that the fee does not exceed the actual costs of screening. Overcharging can lead to legal consequences.
• Transparency Requirements: Landlords are generally required to disclose upfront what the application fee covers. Tenants should receive a clear breakdown of costs and any receipts if requested.
• Prohibited Practices: Using application fees for unrelated purposes, such as property maintenance or profit generation, is often illegal under local laws.

To avoid disputes and maintain compliance with legal standards, landlords should:

1. Clearly communicate the application fee amount and purpose before the tenant submits the application.
2. Keep itemized records of all costs covered by the fee.
3. Ensure the fee is reasonable and does not exceed actual screening expenses.
4. Comply with state and local regulations regarding non-refundable fees and tenant rights.

By following these guidelines, landlords can apply rental application fees in a transparent and legally compliant manner, protecting both their property and the rights of prospective tenants.

Final Thoughts

An application fee for rental can be a smart filter for serious applicants. With tenant screening tools from LeaseRunner and transparent fee structures, landlords can screen confidently while building trust from the very start!

FAQs

Q1. Are rental application fees refundable?

It depends on your state laws and whether the screening service was actually used. In many states, if the application fee for rental was collected but the landlord didn’t run a background or credit check, the fee must be refunded. Some states also require partial refunds if the entire amount wasn’t used.

Q2. Are application fees legal?

Yes, the application fee for rental is legal in most states, but subject to specific rules. For example, New York caps the fee at $20, while California adjusts its maximum annually. A few states require receipts, written disclosures, or even prohibit fees altogether under certain conditions. Always check your local regulations to stay compliant.