I’ve seen that in my W-2 job, so it makes sense that the same value is applicable in real estate.

Maybe it's a processing fee, an application fee, etc?  

Some carriers don't ask but you should make sure that you're not indicating (in the policy application that is typically e-signed) that you aren't using your property for student housing if you are.  

You do not want to lie on an application, that is mortgage fraud.

You can go as low as 2.5x in some cases but NJ tends to produce enough traffic/applicants where 3x should be minimum unless property is over priced.

I like Seth Godin's (altMBA) approach where there are application, experience, and qualification requirements. 

Additionally, I expect applicants to follow instructions in the advertisement and application, to make and keep appointments, to show up on time for appointments, dress and behave appropriately at appointments, and in general demonstrate throughout the process that they are someone that is easy and pleasant to do business with.

A) Landlord denies application from tenant with ESA.

For each property listed through a Section 8 website, over 100 requests for application are received within the first couple of hours.

Being a broker myself, I can attest to the incredible value you can bring to clients by understanding not only the brokering side of things, but the application of those funds.