As a property owner, understanding that application fees come directly from the pockets of prospective tenants can guide you in setting balanced rates. Your choice can play a pivotal role in boosting your rental income.
Fair application fees send a potent message of morality, a quality that increases the attractiveness of your property. Keep reading to become well-versed in this critical aspect of a property management company.
Average Application Fees
If you've seen investment properties in Atlanta, GA, you'll notice that application fees vary. Generally, these fees range from $30 to $200, with the average cost hovering around $40 to $59.
Property management policies and the desirability of the rental property can influence the fee amount. A sought-after location in a booming neighborhood can command higher fees.
What Application Fees Cover
If someone wants to move into your rental property, the property manager facilitates the process. They collect application fees and use them to cover the expenses associated with the vetting process.
These fees should correspond to the actual costs incurred by you or the property management company. Expect to provide a detailed explanation of what your application fee is paying for.
Fair Housing Laws
Bear in mind that any fees associated with renting must adhere to Fair Housing Laws. This means every applicant is entitled to the same treatment and opportunity. If a property management service charges an application fee for one person, they must do this for all applicants.
Compliance with these laws is not optional.
What to Consider as a Landlord in Atlanta
As a landlord in Atlanta, understanding local laws is essential to setting fair application fees. Without an official cap in Georgia, you should base your fees on the real costs of credit and background checks.
Keep prices competitive. If your application fee is much higher than what others in the area are charging, potential tenants might look elsewhere. Your fees should cover costs but not deter prospects.
It's also wise to keep detailed records not only for tax purposes but also in case of legal disputes. Clarify whether there are any circumstances under which the fee might be refunded, such as if an application is withdrawn before the screening process begins.
Addressing Rental Application Fraud
There's a risk for potential renters: application fraud. Sometimes, people pretend to be landlords or agents for homes they don't own. They trick applicants into paying application fees, then disappear.
Protect your reputation and your rental income. Regularly search online for mentions of your business. Clear the air if you find any false claims about your application fees or processes.
Rental Application Tips from a Property Management Company
In Atlanta, application fees can differ greatly, but they always serve a purpose. A property management company will use these fees to verify each rental application.
It's important to keep fees consistent and fair to comply with the law. Clearly outline your refund policy as well, so applicants understand the process.
If you're navigating the rental market and need guidance, PMI Atlanta OTP can help. We have over 20 years of experience assisting landlords. Contact us today so we can support you every step of the way.
