Unreasonable To Ask For App Fee?
When screening tenant/buyers for a lease option deal, is it unreasonable to ask for say a $25 to $35 application fee? I figure, why not make a few extra bucks, especially if I can get that phone ringin'. But I certainly don't want to get greedy. Am I being unreasonable? And if not, what does the average application fee go for? Is my pricing even in the ball-park? Thanks in advance for the help. :wow: [addsig]
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I would get an application fee and use it to get a credit check. I do it for my rentals, why not get an idea of the credit worthyness of a L/O buyer?
I charge $25/adult
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Thanks Swetback.
So, if 2 adults are applying (say a husband and wife) would that be a $50.00 fee?
Thanks again! Good advice!
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Most apt complexes will charge an app fee of at least $25, so you are not out of the norm at all. Most folks should expect it.
Best,
Ryno
It is common practice in my area for all single family residence rentals.
It also shows serious tennants. No one is going to pay 25 bucks just to check the place out. Great Idea.
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My application charge is the actual cost of a credit report and criminal investigation charge. I don't make a profit on these charges.. I do make a profit on the lease/option.