An Overview of Rental Application Fees in Florida
Rental application fees – they’re just another way that your landlord is trying to get you to give him money, right? That may be true to some extent, but it’s not the whole truth. A rental application fee is meant to help a landlord recoup the costs associated with investigating a potential tenant’s rental history and financial background.
Those of us who’ve been on the market for an apartment in Florida know all too well that finding a place to live can be a real hassle. Do you have enough money saved up? Does your credit score meet the limits? And does your prospective landlord even want to rent to you (a tenant with a pet, a tenant with a bunch of kids, a tenant with a criminal history). It can be hard to keep track of all the requirements!
Whether they’re managed by a professional or an absentee owner, landlords often want to make sure that their tenants are not only financially able to pay the rent (both now and in the foreseeable future), but also have a strong history of paying rent. This means that they need to research the potential tenant’s rental history, review their credit reports, and verify other information as needed to get the tenant approved. Typically, the more research the landlord needs to do in order to verify the potential tenant’s financial qualifications, the more that it’s going to cost them. Therefore, to offset these costs, many landlords will charge a prospective tenant an application fee, which the landlord (or property manager) will use to have a credit report run, obtain court records, verify employment, etc .
The amount of the application fee is not limited by Florida law, meaning that it is up to the landlord whether he wants to charge it, and if so, how much he wants to charge. So, how much is it before it becomes illegal?
The Florida Legislature said that a rental application fee can’t be more than 30% of the monthly rent for the prospective apartment or home. So, if the rent is $1,000 each month, then the rental application fee should be no more than $300. The landlord will usually allow that fee to be paid in cash, certified check or money order.
Most landlords (or property managers, as the case may be) expect credit application fees to be paid immediately, however, if you’re in the midst of applying for several apartments, this can come as a bit of a surprise. To protect yourself (and your bank account), before you waste your money on a credit application fee, take the time to find out whether your prospective landlord (or property manager) charges application fees. If so, find out how much it will be and whether they will allow you to combine with applications with other prospective tenants.
For example, say you’re renting a two-bedroom condo and you have a roommate who also wants to apply. It’s a good idea to pay the rental application fee for both you and your roommate as a single payment, and ask the landlord (or property manager) to split it to cover both applications.
Legal Restrictions on Application Fees in Florida
Unlike many states in the U.S., Florida does not have any state law limits on how much a landlord can charge a tenant for a rental application. Instead, these fees are governed by local ordinance, and vary on the county and municipality levels.
Some South Florida cities, such as Miami Beach, have set their own rental application fee cap. Others, such as Boca Raton, do not allow landlords to charge any rental application fees at all. Certain Florida counties, such as Palm Beach County, have similar restrictions. In general, the rental application processing fee is between $25-$75, although this amount may be higher in some areas of the state where the local ordinance sets no limit.
It is important for tenants to remember that they are allowed to request a written list of all other rental applications submitted by the landlord over the prior year, including the amount of the fee and method of payment. If a rental application is denied, then the landlord or lessor is required to return that fee, minus any nonrefundable processing fee not to exceed the greater of $20.00 or 20% of the application fee. Again, this is only on a state level – some local ordinances allow landlords to keep the entire application fee even if a rental application is denied.
Application Fee Refundability: Key Facts
In some circumstances, Florida law requires that a rental application fee (but not the holding/deposit fee) be refunded to a prospective tenant. If the landlord doesn’t comply with this law, the landlord can be held liable for damages, including attorney’s fees. Section 83.201 of the Florida Residential Landlord and Tenant Act requires: If a landlord violates this section by failing to refund an application fee paid by a prospective tenant for permission to rent a dwelling unit, and the court finds that a rental application fee was requested or received in violation of this section, the landlord shall be liable to the prospective tenant for the actual damages or the amount of the rental application fee, whichever is greater. In any action brought by the prospective tenant for a violation of this section, the tenant shall be entitled to recover reasonable attorney’s fees and court costs in addition to any amount awarded as damages.
In compliance with the law, landlords should: To comply with Florida’s laws regarding the refundability of rental application fees, the landlord cannot simply return a rental application fee to the prospective tenant. It is a condition precedent that the landlord deny the tenant permission to rent the dwelling or provide a list of entitled additional tenants because neither will apply to a tenant who tries to apply for rental housing, but does not get approved before entering into the lease.
Tips for Tenants: How to Avoid High Rental Application Fees
In order to avoid the pitfalls mentioned above, there are a few things that a prospective tenant can do. First, if they are going to pay an application fee, they should request a copy of the screening report which contains the information on which the application fee is based. Second, they should request that the property owner or rental agent provide the screening service with correct information if it is inaccurate . Third, if the screening reports lists inaccurate information, they should ask to be made whole. The law says that in that situation, the applicant’s application fee must be refunded and they have to be given $100 (or 5% of the application fee-whichever is greater), so the applicant should make this demand. If an applicant executes both of these remedies, it will likely prevent them from being charged excessive amounts of application fees in the future.
Disputes over Rental Application Fees: What to Know
Should a dispute arise between the landlord and potential tenant regarding an application fee or any other type of rental fees, Florida Statute 83.80 gives the landlord and tenant a procedure to follow before taking the matter to Court. After giving notice to the other party, a landlord may apply to the Court for an examination under oath of any person where there are allegations made that a fee is improper or disclosure statements are false. Likewise, a tenant may apply to the Court for an examination under oath of a landlord or the person who received the payment from the tenant if the deposit was returned but not within five days as required by Fla. Stat. 719.202(2). No claims for relief may be made in this proceeding. This section is merely a discovery device. If after giving written notice to the landlord or tenant that a claim for the return of a rental application fee is not paid, the person to whom the notice was directed may apply to the Court for an order requiring that claimed refund to be paid. The Court shall issue the order it deems appropriate. Where the full amount of the claimed refund is deposited within five days after the service of the order for immediate payment, the defendant shall be entitled to recover reasonable attorneys’ fees and court costs from the person who was the complainant.
Recent Developments and Trends in Rental Application Fee Laws
Although lawmakers have not passed any major changes affecting rental application fees in Florida in recent years, with the issues frequently appearing in the news it seems likely to be an area of focus at the next legislative session.
Sarasota’s Republican Representative Noelle Lee. An Friendly Landlord Occupant Allowable Rent Control Act, would have required all landlords operating in Sarasota County to cap their rental application fees at no more than $25 for an individual applicant and $45 for a married couple. Lee sponsored the legislation after hearing frustrations from residents about rules limiting how landlords could use application fees for criminal and credit checks . The bill failed to get out of a committee, but likely the issues will be brought up once again in the 2016 legislative session. Orlando businessman Daniel Griggs has started a petition to push lawmakers to limit the fees. His petition asks the state’s regulatory agency to "be the consumer’s watchdog by limiting the amount an application fee on the renter, for all apartments and houses." Orlando is seeing similar complaints from citizens who say the fees are not commensurate with services provided and require tenants to lose money if they seek to apply to multiple apartment complexes. It is widely expected that these issues will continue to come up in the legislature and make it their way into law in the near future.
