Screening, application fees & junk fees
General information, not legal or tax advice. Landlord-tenant and tax rules vary by state, county, and city and change often. Confirm against current statute or a licensed professional in the relevant jurisdiction before acting.
For landlords
Residential
The rules are tightening and vary by state. New York limits the fee to the actual cost of the background and credit check or $20, whichever is less, and requires you to waive it if the applicant supplies a recent report. New Jersey caps it at $50 per applicant starting May 2026, with no add-ons. California sets a CPI-adjusted maximum that rises each year.
Many states still have no cap but require the fee to reflect your actual cost. Disclose the fee up front, don't profit from it where that's prohibited, and keep the screening receipts to show what it covered.
For renters
Residential
'Junk fees' — vague or duplicative charges like undisclosed admin or processing fees, or fees for things the landlord is already required to provide — are increasingly restricted. A wave of 2025–2026 fee-transparency laws (Washington D.C., Florida, and others) require fees to be reasonable, disclosed in writing before you sign, and used for their stated purpose.
Before signing, ask for an itemized fee schedule and compare it to the lease. Push back on any charge that isn't in the written agreement or that duplicates something rent already covers — in many jurisdictions an undisclosed fee simply isn't enforceable.
For landlords
Residential
You may generally set objective, consistently applied bars: a minimum credit score, an income multiple (2.5x to 3x monthly rent is common), verifiable rental history, and no disqualifying lease-violation record — provided they're applied equally to everyone and don't act as a proxy for a protected class.
Watch jurisdictions that limit credit-score-only denials, require individualized assessment of criminal history, or mandate that you consider housing vouchers under source-of-income laws. Put your criteria in writing before you advertise, and judge every applicant against the same list.
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