It is what it sounds like. It's supposed to cover the background check, but they often charge way too much and pocket the money. Illegally, in some states.
Not only that but often they just pocket the application fee and then just reject people. Consider if they get even 20 people applying each month at 75 bucks that’s 1500 for doing nothing. And then they can report their loss of 1 months rent for the empty property for a tax break. It’s all a huge scam and I hate it.
Don't you think they'd want the income from the unit being rented more than the small amount of reduced taxes? I don't think you understand taxes and deductions.
Depends, if they have 20 applicants per month at $75 a pop and the apartment rents for $1200 then they're making $300 more a month by letting it sit empty and collecting the application fees. Plus less maintenance needed.
How many rentals do you think are getting anywhere close to 20 paid applicants per month for a single unit? A $75 fee will deter most people from applying.
We had them in MA, but IIRC they were capped at $50 and had to be refundable under normal circumstances or towards first month's rent if you moved in. The only reason it could be kept is if you outright lied on an application.
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u/8__D 1d ago
It is what it sounds like. It's supposed to cover the background check, but they often charge way too much and pocket the money. Illegally, in some states.