When to have tenants fill out an application fee

[Mike Bonadies]

Hi Bigger Pockets Community and Property Managers -

I've got a question regarding when you your prospective tenants fill out an application form and pay their application fee. I am starting a RE Investment company that is using the BRRRR in South Jersey so I am a rookie. My research tells me that property managers typically have an initial screening call and a property walk before they have their tenant fill out an application, but recently I came across a few companies in Washington DC that were doing things a little differently. The companies in Washington DC were asking people who were interested in the property to fill out an application first and pay the application fee before they walk the property or have the initial screening call. That seems great to me as it weeds out the people who really want the place but it also seems to me, how do I say this....scummy and would create a bad rep for your properties not to mention unwanted inquires with fair housing laws. Here are my reservations:

What happens if the company accepts multiple applications but issues the house to the first application?
What if you walk the property and the pictures are completely misleading to the actual look of the property?
Do you have to give each application a look before you can issue the rental?

Maybe I'm overthinking this a bit. Anyone have experience executing this or any knowledge?

-MB