security-deposit awkwardness

[Daniel Miller]

I know that folks on this forum always recommend (rather strongly) requiring a security deposit along with applications for a rental property.  (This is the deposit for the application, *not* the deposit for actually renting the house!) This is supposedly to reimburse the landlord (that would be me) in the event that he puts alot of work into studying an applicant, only to have them say "Oh, I found something elsewhere, nevermind".

However, this deposit has ended up being very awkward in my case.  Prospective renters cannot even contact me unless they have email, I send out the application by email, and I strongly recommend that application and documents are returned by email... but that makes the deposit handling quite awkward... do I want them to pay postage just for that one document??  (not really) or do I go out of my way to meet them somewhere to pick up that check??

I made the mistake of trying to ask a couple of people who were viewing the house, to give me a deposit check at that time, but that went very awkwardly (which I sort of suspected it would).

My inclination is to just drop the application deposit entirely; if they go through the trouble to fill out the application and scan the documents that I require, I suspect that I can treat that is meaningful interest.  In the meantime, the rest of my research doesn't take all that much time, and doesn't cost me anything at all...

Is anyone here horrified by this idea?

[Bradley Bogdan]

@Daniel Miller

Just looking over your list of requirements, you can't mandate someone is currently employed in California, assuming that's where your rentals are located. You can set a minimum income, but in many places, including California, you can't discriminate against where that income is coming from (provided its over the table). That means someone on a fixed income, child support, etc. can't be turned down simply because they're not employed. 

Other than that, I'll echo what others have said. Charge folks once you accept their application, and only for the amount it costs you to run the appropriate checks on credit, criminal history, etc. I've found application fees substantially above cost (such as @John Thedford 's $75 per applicant) for anything other than high end properties can be a major turnoff for prospective tenants.