Application fees, yes or no?

[Alyssa Paros]

Do you charge application fees? What is your rationale for charging or not?

[Kyle J.]

There are valid arguments to be made both for and against charging application fees, but I find that it usually comes down to what the norm is for your local market.  With that being said, I do charge an application fee and here's a list of some of the reasons why:

1)  I incur a cost to run a credit check so the application fee just offsets this cost (I don't make money off the application fee, I just charge according to what it actually costs me so I'm not out any money).

2)  It helps weed out the tire kickers who may turn in an application but aren't serious about renting the property or those that might turn in an application hoping you won't find out something that would disqualify them (I give all applicants my criteria stapled to the application so they know exactly what I'm looking for, and not looking for).

3)  It's another screening tool (if the applicant can't afford the application fee, how are they going to afford the rent + security deposit?)

4)  Other landlords/property management companies in my local market charge application fees so it doesn't hurt my chances of getting a tenant if I charge one (if no one in my local market charged an application fee than I would probably reconsider charging one as I'm sure it would result in less applicants applying). 

I'm sure others will have different reasons for either charging them or not charging them, and they all probably have some merit.  Like I said initially, it often comes down to what the norm is for your specific market.