Application Fee Credit and Criminal Background checks

[James Kirby]

Hello Everyone,

      I am new to investment properties and I am currently in the process of closing on my first multi-unit property. I have been doing a lot of research on everything over the past several months and have a quick question on the Application Fees. I feel as though a lot of my time can be consumed by having the prospective tenants filling out applications and then having me screen the application (contacting previous landlords, employer, personal references, etc.) and only charging them for the credit and criminal background check. The question's that I have are:

1. Is it legal to charge them a $10 application fee (to cover a portion of my time) plus have them pay for their credit and criminal background check if they pass my screening ($40 through SmartMove)? (I can't find anything about the legality of application fees in Utah)

2. Does that sound harsh or uncalled for?

3. I have read other posts where all or part of the application fees have been given back to approved tenants that accept and sign the lease agreement. Is this something that you would do? If so, why? and how much would you recommend crediting back?

Thank you in advance for your time.