i got a kick out of this. I received this response from a prospect when I provided her information about viewing and applying for a unit:

“Never mind, I don’t want to spend a $60 gamble on an application fee. Trying to find a private party that doesn’t make us do these ridiculous applications with ridiculous fees.”

To be fair, I'd get that same response around here. My fee is $15 and it covers the credit check (through this site). If I tried to get $60 in my area, I'd get zero applicants.

I can see somewhere in the middle depending on the area -- but $60 does seem high to me. What are your costs for the checks that you're doing? Does it really cost you $60 to get what you need? (Just curious -- not saying you're wrong or anything! This varies greatly by state and area.)

- John...

I have my applicants pay for their own background and credit checks, and then I deduct that from first month's rent if they are accepted.

You know the credit report is likely going to be bad when tenants have difficulty coming up with the $30 ($15 for each adult) to pay for this. Had a couple have to "go to the bank" to get this money. They likely meant the local Kroger (literally) around the corner. They were gone for 45 minutes.

I do tell people if they know their credit is going to be bad (lots of collections, a history of evictions) to just save their money and don't bother filling out an application.

I charge $20 a head and spend around $26, a loss of six bucks. So I'm the one taking a gamble. I get full reports, not just credit but eviction, criminal, Telecheck, Social Security Trace and more.

Once in a while people who think the have bad credit and won't reach a 680 FICO score and discouraged from turning an application unless they have:

a) a solid job with extra income

b) real money in the bank

c) little debt

Ok so far Oregon is the 'odd man out'

They have always allowed a fee to apply and it's governed by statute...

The companies/bureaus charge on a sliding scale, more detail more cost..

Oregon also gives control to the tenant for the property.. so there is the biggest risk..

$20 per applicant. I LOSE money on applicants: the $20 drives away tire kickers.

The key phrase is "gamble on an application fee".... right there you know she her references are most likely bad.

We charge $50/applicant and every person over 18, applicant or occupant, must complete an application. Our fees are on par with the market except for multi family that range between $100-150.

The application fee includes OOP costs but it also covers time. Besides the regular reports we do rental verifications as far as 7 years back and in many instances that is several LL's. We also have to complete the Fair Credit letter both accepted rejected applicants along with a copy of the reports.

And these fees do not include the cost of income verification since most of the larger employers in this area only provide electronic verification which costs $30-50 (applicants expense).

The big management agency in my town charges $75 per adult now.

Those who don't want to pay the fee know there is a good chance they won't be accepted.

In Oregon, I had to give the applicant a copy of my written criteria, which discouraged a bunch of optimistic losers, but I'd still get 30-40 applicants. There is no way I could do screening without the applicant paying the fee. I'd have 150 people interested and 120 of them would decide to not apply after they heard my criteria. But if they weren't going to lose an application fee, they would all give it a try.

I never have this problem because I never charge for the application--or--require an app first before showing the unit. To everyone who responds to my advertising,I send a list of times the unit will be shown. My timings are varied (a weekday morn, a workday night, a weekend day(Sat or Sun). That way everyone's schedule has a convenient time. At the house, my apps are free and pens are avail. By the time I get filled-in apps, the applicants have seen the house and I have seen them(which is just imp).

Many don't have the full name and ph# of the former LL with them,and that's OK. I let them take the app home to fill out fully. Yes, most don't come back and that's OK. The serious ones have the necessary info and fill the app right there if they are really interested. Shows me they are competent, organized, and serious about applying. I will take a check($25) for the background screening that costs me $30 but I eat it. That check gives me corroboration of their name, and bank info for further due diligence.

By the time my showings are finished I usually have 2 good apps from people who:

- understood directions, dates, and times of the showings

- came prepared to fill out apps with the correct info

- have bank accts with money in them (I check before depositing)

I'm cheap. I don't know that I would pay any app fee.

Ours are free because I wants LOTS flowing in. We do a lot of cross selling (they apply for one home but we talk to them about the lower priced home they CAN afford.)

Takes MOMENTS to preview an app. Most die in the first few minutes.

BRAD

When I used to cover the cost of screening I spent a lot on applicants who were not approved.

When I charged $20 and covered the rest I still got losers.

Once I started charging exactly what I was charged, $40 per person, or $50 per married couple (my cost), I almost always approved the applicant.

I explain exactly what will and will not be approved so if they think they won't be they might not want to waste their money. Now some still pay who lie profusely but it has cut way down on that.