An application fee is a non-refundable payment that rental applicants typically must submit when applying for a rental property. This fee covers the costs associated with processing the application, such as conducting background and credit checks on the applicant. Property managers require application fees to offset the administrative burden of evaluating potential renters.

Application fees are standard practice, but the specific amount can vary depending on the location and property. Renters should be aware that paying an application fee does not guarantee approval for the rental unit. Some states and municipalities also have laws regulating application fee amounts or what they can cover.

To avoid misunderstandings, renters are encouraged to request a receipt and clarification from the property manager about what services the application fee covers. Renters should also familiarize themselves with any local regulations surrounding application fees.