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Collecting Prospective Tenants' Application Fees

By
Real Estate Broker/Owner with Jeff Lund-Income Property Specialist- Bellabay Realty LLC

Hello Everyone,

I just got an idea on collecting larger amounts of application fees... and making it easier.

Several times prospective tenants ask if there is an app fee, and I often waive the charge, in hopes to get more appicants to choose from.  I have found that requiring a large fee upfront will sometimes cause an otherwise good tenant to not want to even show up.

When a tenant views a property, I tell them that there is a $20 application fee, to be collected when the lease is signed.  This way I still get a fee charged, and I don't scare them away in the beginning.

Different areas do different things, so I would be curious as to how others charged, and how much.

Jeff Lund

Five Star Real Estate

Investment Property Specialist

jefflund@grar.com 

 

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