Double Application Fee for Couples?

Question

When my wife and I have rented places for ourselves previously, we only ever payed a single application fee. However, the prevailing logic I've researched says that each person over the age of 18 living in the house needs to have a separate application and application fee.

I just showed a unit to a couple, and the woman was a little surprised that we charged two fees.

What do you guys do? I know it's hard to hinge on the "couple" criteria since anyone two people could technically be a "couple". Do you guys waive one of the fees (and either not run credit/background on one of the applicants, or eat the cost yourself) when two people come together?

Doug McVinua · Answer

We treat each Applicant (18 and older) exactly the same, the same application, the same $45.00 screening fee, the same documents etc.

Having had the "opportunity" to defend my self on a Fair Housing complaint I realized just how important it is to treat everyone equal every time. By the attorney general standards I was guilty until I could prove myself innocent. 6 months later all was cleared (case dropped) and done with no issue, not fun but educational.

I have no desire to even touch who and what is a couple, married, unmarried or whatever! 18 and older you will get screened.

Denise Evans · Answer

You have to go with your market and what is prevailing there. You should always run a credit check for anyone signing the lease, and a general background check for any adults who will be occupying the premises.  Married or couples or anything else is irrelevant.

A word of caution regarding background checks. Are you aware of new HUD rules regarding Fair Housing and criminal background information?

Deanna McCormick · Answer

If they want to run the most income qualified first and they qualify,, the 2nd is criminal only.

We would apply application fees to 1st month rent if approved. but you don't have to do that.

35.00 is pretty average for fee. this isn't suppose to be a money making transaction, some cities have a set rate that they permit

But all adults over 18 must sign the lease and have background check.

Michael Noto · Answer

@Michael S. Charge them both fees.  Each applicant pays a fee, you shouldn't have to really explain it anymore than that.  Tell them you are charging them what it costs you to run their background.

Tell them If they don't like it they can apply to an apartment where the landlord doesn't do background checks.  Is that really the kind of place they want to live?

Penny Clark · Answer

FCRA (Fair Credit Reporting Act) is what I meant to say, not FCC.

Penny Clark · Answer

@Michael S., YES,  run any applicant 18 years or older who intend to occupy the property. Why? Simply because you want to know the financial history and background of who will be occupying one of your biggest assets. It is not unheard of that tenants with poor or bad credit or a history of evictions, collections, judgements or late pays will hide behind the one with a higher credit score or who does not have these on their record. This may be married couples, live-in couples or parents with adult children.

Explain to each person who applies and pays the fee your policy. It will let them know that you are a serious landlord who treats rental properties like a business. Moreover, it may motivate an applicant to be truthful about, for example, a medical collection, a bankruptcy, or a foreclosure that has caused their credit score to take a nosedive.   People who confide their financial faux pas score points before they are revealed actually score points with me. Those who hide them because they think I won't check get shown the door.

I will give a copy of the credit check report I run to those applicants who apply and were declined along with the FCC credit denial letter so they feel like they got something for the money they spent. If an applicant pays the fee and I do not run the report, I reimburse them for the cost. This is why it is better to run one applicant at a time and go with the first one who qualifies and meets your rental criteria.

Russell Brazil · Answer

What is customary in your market place? In my market it is customary for only one person's credit to be run, and it sounds like by the applicants reaction that is likely the custom in your market place as well.

Kim Meredith Hampton · Answer

We are consistent across the board and charge each person over the age of 18 an application fee, does not matter if they are a coupe, single, black, blue or green

Peter MacKercher · Answer

We operate in the standard way: 1 application for each person over the age of 18 who will live at the property.

Personally, I get it; no one likes fees and it'd be nice if the screenings were free for everyone. That said, I look at it as one of those flags that can get raised early on; if someone is complaining about application fees out the gate then they're not likely to be a good tenant anyway, for a laundry list of potential reasons. It's a way to get a sniff of what to expect so I don't see a good argument for dropping the fees.

Louis A. · Answer

This is how I sell it -- Most understand and appreciate the process:

- $35 fee for each adult >18 years payable directly to Transunion Smart Move (not me)- Fee is mandatory and all of my tenants have gone through the screening process- I want all of my tenants to feel comfortable with their fellow tenants - As a female (or as a husband), I'm confident you will appreciate these measures to enhance the safety and comfort of your loved ones against those who may have a violent or sexual assault history

Double Application Fee for Couples?

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