You looked past a red flag right at the outset:"When application was made tenant was I am not going to to have my puppy with me so do not need pet fee or application"Total red flag.

.: I have an applicant who's going through a rental screening process A.T.M.

This is straight from the CFPB website: "Additionally, for 60 days from the date your loan servicing transfers, your new servicer cannot charge you a late fee or treat the payment as late if you sent it to your previous servicer on time or within the applicable grace period."

The first applicant made $4000/month.

This criteria happens to pretty much exclude all S8 applicants. 

I know property managers in every state who use non-refundable application fees and it is the standard for every class of property and applicant.

In New Jersey, there are numerous brokerages to chose from, and I highly suggest you do a google search and look into 100% virtual real estate brokerages in New Jersey. 

Use the top three or four discriminators so applicants can screen themselves.Then you need to have clear screening criteria yourself.

That is numerator.

I encourage you to define your financial goals, as real estate presents numerous possibilities.Building a strong foundation of knowledge and connections can significantly impact your success in real estate investing.