Online House Hunting - How much should I charge for as an APPLICATION FEE?

How much should I charge for as an APPLICATION FEE?

I have a few homes that I will be renting out. I am the owner and prefer to gather information and tenants myself rather than using a company. The application is 3 pages which includes one form asking their permission for a background/credit check. I have a website that charges 20 per month plus 25 cents for each credit check pulled. I will be doing a credit check on each application and will be sending a copy to each potential tenant. I am familiar with Housing Laws just to note. So my question is What is the most/decent price for me to charge them for this fee? The money will be going towards the Classified Advertising along with Gas/2 hours travel time to head out to the city where my first home is held. Also I am from California and the home is located in city/location where it will be easy to rent out. The home is a 2B/1B 1,000SQF with everything in excellent condition. I was thinking around $15.00

Public Comments

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Usually around $30.00. That is what the apartment I live in charges.
nothing, if you're serious about the tenant
i say 40-50 dollars is a decent price with wat ur offering
I Think 25 -$30.00 is fair.
I actually thing $20 - 25 is a fair price. It covers the time you spend processing the information and doing a credit check. I paid $40 for my last rent application processing fee. Just make sure not to under charge as you will be doing a lot of work.
Seriously? Nothing. I know it's not a lot of money, but if someone is looking for a place to live, and they are exactly the same, and one charges an application fee while the other doesn't, they're going to pick the place that doesn't charge a fee!
$30-$50 average in my area (Milwaukee area) But you should call a couple management companies in your to see the going rate
We have rentals but don't charge an application fee. But, there are city ordinances that regulate it. You might want to check if your area has any laws regarding application fees. I have always considered $25 fair.
$20-25 is fair. I don't know about you, but I wouldn't apply somewhere with a $45-50 application fee. That is just a rip off!
Your name says it all. Any rental that charged a fee to let me know if I'm a worthy tenant would get passed over on my list. Makes me glad I own my home. If you're being charged for a credit check, simply pass along the fee without adding your own rake to the transaction. Otherwise, it's unethical IMO. The rent is what's supposed to pay for that. Run your numbers more efficiently and you won't need to charge for the gas OR the advertising.
I recommend $20. Keeping it low will guarantee the following: -Several people will be interested enough to complete applications. -It won't take good potential renters out of the picture. -It will keep people from wasting your time if they aren't really interested. -It will open people up to trusting you to not take them for a cleaning when it comes to rent. I'm guessing you'll have at least 5 applicants giving you $100 or more. That pays for your 1 month website fee + 5 credit checks + leave you with about $80 for your gas, advertising, and time (unless of course you get more applicants). Good luck with your decision and finding a great renter for your property.
Absorb the cost at the outset. These are trivial things that lead potential and qualified leasees to be mistrustful of landlords. If you portray yourself as someone who will charge niggly fees from the get-go, potential renters will wonder what other fees you might be willing to pass on to them. You're the owner; some costs must be considered business costs. I had been a tenant for two years before buying my home, and was never once asked to pay a fee upfront by any of the six places I inquired about renting. I have only ever heard of paying an application fee in situations where the apartment is in a board/building society controlled, and usually luxury, or very high rent/high demand areas like NYC, where you typically see registration/application fees in the hundreds. From how you've described your rental property, it doesn't seem to meet any of those pre-conditions. Lastly, YOU are the one electing to do a background and credit check, not the renter. If you were specifically looking for an answer to "how much," I'm sorry; however, I believe there are some fees you just have to swallow, as the cost of doing business.
In Florida, the average application fee is $25.00. Call your local realtor's office and ask what they charge, that should be your starting place. Stay in the market. It's amazing what small thing can turn a renter off. If everyone is charging pretty much the same, it levels the playing field.
When I was a landlord a couple years ago, I charged $25, but when I rented the condo, I credited it back to the renter on the first month's rent. Back then, it brought only serious renters. In today's market, I would take an application free and eat the cost. It will save you in the long run.
$15 is probably really fair I know last years 2007 edition of the tenants rights book for CA stated under the Application Screening Fee you could charge up to $37.57 it stated the application fee cannot be legally more than your actual out-of-pocket costs and you have to supply them with a itemized deduction as well. Do you happen to have one of these books I know it has came in pretty handy for myself. www.dca.ca.gov Do you mind sharing your site that you check their credit at? if so can you email it to me fort_bragg_girl@yahoo.com
I have a friend that is a landlord, the charge is $20 for application fee. That weeds out the tire kickers, and leaves the people that really want the place.