You paid an apartment application fee, but you did not get the apartment. Is the landlord required to return your money?
Sometimes—but not always.
There is no single nationwide rule making every apartment application fee refundable or nonrefundable. Your right to a refund may depend on state or local law, the terms shown before you paid, what the payment was called, what it was supposed to cover, and whether the landlord actually processed your application.
Being denied does not automatically create a federal right to an application-fee refund. However, you may have a reasonable basis to request your money back if the landlord did not perform the promised screening, charged more than local law allows, failed to follow required procedures, misrepresented the fee, or collected money for a rental that was not legitimately available.
What Is an Apartment Application Fee?
An apartment application fee is money a landlord or property manager may charge to accept and process a rental application.
Depending on the landlord and the terms of the application, the fee may help cover:
A credit report
A criminal-background search
Eviction or rental-history records
Income or employment verification
References from previous landlords
Administrative processing
Not every landlord performs the same checks, and not every application fee pays for identical services. Before paying, ask what the fee covers, whether it is refundable, what screening criteria will be used, and whether the unit is still available.
Keep a copy of the application, fee disclosure, advertisement, and receipt.
Is an Apartment Application Fee Refundable?
An apartment application fee may be refundable in some situations, but many legitimate screening fees are described as nonrefundable.
The answer may depend on:
State and local rental laws
The written application or fee agreement
How the payment was represented
Whether the landlord considered the application
Whether a screening report or other processing was completed
Whether any part of the fee went unused
Whether the landlord followed required disclosures, limits, and procedures
A statement saying “nonrefundable” is important, but it may not override a law that requires a refund in a particular situation. On the other hand, the fact that an applicant did not receive the apartment does not necessarily mean the landlord must refund a properly disclosed and lawfully used screening fee.
Do You Get the Application Fee Back If You Are Denied?
Usually, denial alone does not guarantee an apartment application fee refund.
A landlord may have already paid for a tenant-screening report and spent time reviewing your income, rental history, references, or other information. If the fee was properly disclosed, permitted by applicable law, and used for its stated purpose, it may remain nonrefundable even when the application is denied.
Before accepting that answer, check:
Did the application clearly say the fee was nonrefundable?
Was the payment actually an application or screening fee?
Did the landlord process or consider your application?
Did the landlord obtain a credit or tenant-screening report?
Was the unit genuinely available when the fee was collected?
Does state or local law limit the fee or require unused money to be returned?
Did the landlord provide any required receipt, disclosure, or report?
Ask the landlord to explain the denial and confirm what processing occurred. Keep in mind that some landlords may not be legally required to give every detail behind their decision. Different rules apply when a consumer report contributed to the denial.
What If You Change Your Mind?
If you voluntarily withdraw your application, obtaining a refund may be more difficult—especially if the application clearly described the fee as nonrefundable and the landlord already began processing it.
However, the outcome can still depend on the agreement and applicable law. Relevant questions include:
Did you withdraw before the screening began?
Had the landlord incurred any actual screening or processing costs?
Did the written terms explain what would happen if you withdrew?
Was the payment actually a holding deposit rather than an application fee?
Does local law require unused screening money to be returned?
Requesting a refund promptly may help, but it does not guarantee one. Explain in writing when you withdrew and ask whether any part of the fee remains unused.
What If the Landlord Never Ran the Screening?
If you paid for screening but believe no credit check, background check, reference check, or meaningful processing occurred, ask the landlord for written confirmation of what was completed.
You can reasonably request:
An itemized receipt, if required or available
The name of the tenant-screening company
Confirmation that a report was ordered
The date your application was reviewed
An explanation of what the fee covered
A refund of any unused amount when supported by the agreement or applicable law
A landlord’s inability or refusal to provide these items does not automatically prove that no work occurred. Requirements vary by jurisdiction. Still, documentation can help you determine whether the charge matched what was promised and whether state or local law gives you a refund right.
If a consumer report contributed to a negative decision, federal law gives you additional rights described below.
Application Fee vs. Deposit
The name and purpose of the payment matter. An apartment application fee is not necessarily the same as an application deposit, holding deposit, or security deposit.
| Payment | Common purpose | Typical timing | Possible refund treatment |
|---|---|---|---|
| Application or screening fee | Processing an application or obtaining screening information | Before approval | May be nonrefundable, refundable, limited, or partly refundable depending on law and terms |
| Application deposit | Showing interest or providing funds toward a future lease | During the application process | Depends heavily on written terms and state or local law |
| Holding deposit or holding fee | Asking the landlord to hold a unit and stop offering it to others | Before the lease is signed or move-in | Refund may depend on who cancels, stated conditions, and local law |
| Security deposit | Securing the tenant’s obligations under a lease | At approval, signing, or move-in | Generally governed by separate deposit laws and lease terms |
Landlords and jurisdictions may use these terms differently. Look beyond the label and determine what the payment was actually intended to do.
For guidance on other payments, screening, and documents required before signing a lease, see “Renting Your First Apartment in the U.S.: What You Need to Know.”
Examples of How State Rules Can Differ
The following examples show why renters should not rely on a single nationwide answer.
California
California Civil Code Section 1950.6 regulates residential application-screening fees. Current law provides different permitted screening processes and includes circumstances in which fees must be returned. For example, under one permitted process, applicants generally cannot be charged unless their application is actually considered, and a fee inadvertently collected for an application that is not considered must be refunded within the statutory period.
California law also requires the return of screening-fee amounts not used for authorized purposes when specified screening activities are not performed. At the same time, an applicant whose application was considered and denied for failing to meet established criteria is not necessarily entitled to a refund under that process.
These are California rules, not nationwide requirements.
New York
New York Real Property Law Section 238-a generally restricts residential application-processing charges and permits charges for background and credit checks subject to statutory conditions. In many covered rentals, the combined charge cannot exceed the actual cost or $20, whichever is less.
The landlord must waive the applicable fee or fees if the prospective tenant provides a copy of a background check or credit check conducted within the previous 30 days. Before collecting a permissible fee, the landlord must also provide the prospective tenant with a copy of the background or credit check and the receipt or invoice from the company that conducted it.
The statute includes exceptions and qualifications for certain cooperative housing corporations and other covered housing arrangements. Its limits should not be applied to properties outside New York.
Cities and counties may provide renters with additional protections, so check both state and local rules.
What If a Tenant-Screening Report Caused the Denial?
The federal Fair Credit Reporting Act provides protections when a landlord takes an adverse action based wholly or partly on information in a consumer report.
Adverse action can include:
Denying the rental application
Requiring a co-signer
Charging higher rent
Requiring a larger security deposit
Imposing less favorable rental terms
The landlord—not the tenant-screening company—makes the rental decision.
If information in a consumer report contributed to the decision, the landlord must provide an adverse-action notice. The notice may be written, electronic, or oral and must provide:
The name, address, and telephone number of the consumer reporting company that supplied the report
A statement that the reporting company did not make the decision and cannot explain the specific reason for it
Notice of your right to dispute inaccurate or incomplete information in the report
Notice of your right to obtain a free copy of the report from the reporting company if you request it within 60 days
Request the report directly from the screening company within that 60-day period. Review names, addresses, credit accounts, eviction records, criminal records, and the status or outcome of court cases.
If information is inaccurate or incomplete, submit a dispute to the reporting company and include supporting documents. Also tell the landlord that you are disputing the report. Correcting an error does not automatically require the landlord to approve your original application, but you may ask the landlord to reconsider.
These FCRA rights relate to the report and adverse decision. They do not, by themselves, create a general right to an application-fee refund.
What If the Listing or Fee Was a Scam?
Scammers may copy real rental listings, advertise properties they do not own, and collect supposed application fees or deposits.
Warning signs include:
A price far below comparable rentals
Pressure to pay immediately
Refusal to let you see the property
Different owner names appearing in ads for the same address
Requests for gift cards, cryptocurrency, wire transfers, or cash
An alleged landlord who claims to be unavailable for every in-person interaction
Requests for sensitive personal information before you can verify the listing
Search the property address and the owner or management company’s name. Check whether the listing appears on the company’s official website and whether other advertisements show conflicting contact information.
The FTC advises renters to be especially cautious when someone demands payment before the renter can reasonably inspect or verify the property. If you suspect fraud, preserve the advertisement, messages, payment records, and contact information, then report the incident to the FTC and appropriate local authorities.
What to Do If You Want Your Application Fee Back
1. Review the application and payment terms
Find the language describing the fee, its purpose, and whether it was represented as refundable or nonrefundable. Review any cancellation, withdrawal, or denial terms.
2. Identify exactly what you paid
Determine whether the payment was an application fee, screening fee, application deposit, holding deposit, security deposit, or a combination of charges. Save the receipt and payment record.
3. Ask why the rental did not proceed
Request a written explanation when possible. If you were denied, ask whether a tenant-screening report contributed to the decision.
4. Determine whether processing occurred
Ask what screening or administrative work was performed, whether a report was ordered, and whether any part of the payment went unused.
5. Preserve your documentation
Save the application, receipt, advertisement, fee disclosure, screening criteria, emails, texts, denial notice, and notes from phone conversations.
6. Check state and local law
Use official state statutes, attorney general resources, housing agencies, or local tenant-protection offices. A local legal-aid organization may help explain which rule applies.
7. Request the refund in writing
State the amount paid, payment date, property address, reason you believe a refund is due, and the law or written term supporting your request. Attach copies rather than original documents and request a response by a reasonable date.
8. Consider further remedies if necessary
Depending on the circumstances, options may include contacting a state or local consumer-protection office, filing a complaint with the FTC, consulting legal aid, or using an available small-claims process.
A card or bank dispute may be appropriate when a charge was unauthorized, duplicated, fraudulent, or materially different from what was promised. A payment dispute does not guarantee reimbursement and should not be used merely because a valid, properly disclosed fee produced an unfavorable result.
Frequently Asked Questions
Are apartment application fees refundable?
Sometimes. Refundability depends on state and local law, the payment terms, what the fee covered, and whether the landlord actually performed the promised screening or processing.
Do I get my application fee back if I’m denied?
Not automatically. There is no nationwide rule requiring a refund solely because an application was denied. Check the written terms and applicable state and local law.
Can a landlord keep my application fee?
A landlord may be allowed to keep a properly disclosed and legally charged fee used for its stated purpose. A refund may be required if the fee violated local law, was not used as promised, or was actually a different type of payment subject to separate rules.
What if I paid an application fee but the landlord never ran my screening?
Ask what processing occurred and request supporting documentation. You may have a basis for a full or partial refund depending on the agreement and state or local law.
Is an application fee the same as a security deposit?
No. An application fee generally concerns screening or processing before approval. A security deposit generally secures obligations under a rental agreement. Different laws and refund rules commonly apply.
What should I do if my application was denied because of a tenant-screening report?
Obtain the adverse-action notice and request a free copy of the report from the reporting company within 60 days. Review it carefully and dispute any inaccurate or incomplete information. Remember that the screening company supplied information; the landlord made the rental decision.
The Bottom Line
Not getting the apartment does not automatically mean you are entitled to an application-fee refund. It also does not mean the landlord can always keep the money.
Start by identifying what the payment was for, reviewing the written terms, confirming whether screening occurred, and checking the law where the property is located. If the fee was unused, misrepresented, unlawfully charged, or connected to a suspicious listing, request repayment in writing and preserve your evidence.
This article provides general consumer information and is not individualized legal advice.