Do you make money on rental applications?

[Ryan Davis]

I am in the process of renovating my first rental unit. I am house hacking on a duplex and almost have the other side ready to rent! I hope to have it move in ready by the first of December. So here's my question for all of you experienced landlords...

Do you make money on applications? If so, how? If not, why not? 

If you do make some side cash on the applications, what screening service do you use, how much do you pay and what do you make them pay? 

Thanks!

[Neal Collins]

@Ryan Davis We charge $40 per adult applicant. Our screening service through Appfolio costs us $15 per applicant. While the delta may seem like a profit center, when you also factor in your costs associated with the lease up---the time it takes to show a unit, screen the applicant, call references, and do a move-in inspection---I would say you're still in the red. 

We are on the low side for our market in terms of the application fee. I'd rather not put up a barrier simply because of the application. With that said, however, I also don't want to set application fees too low.