AI & Automation

What Can You Charge for a Rental Application?

Read time
5 min
Published
A rental application form on a counter with a small stack of coins beside it and a receipt curling out of the page.

It varies sharply. California caps a screening fee at your actual out-of-pocket cost, with a statutory figure of $30 per applicant written in 1998 and CPI-adjustable since. Washington sets no dollar cap but bars charging anything until you disclose the screening. Ontario and British Columbia both prohibit application fees.

What Does California Let You Charge?

Civil Code 1950.6 is usually quoted as a flat $30 cap. That is half the rule. Subdivision (b) does say the fee shall in no case be greater than thirty dollars per applicant, but the same sentence permits annual CPI adjustment beginning January 1, 1998, and separately caps the fee at your actual out-of-pocket cost, including the screening service and the reasonable value of your time. So $30 is a 1998 figure, not a 2026 ceiling, and out-of-pocket cost is the limit that binds. Three duties surround it: (c)(1) forbids charging when you know no unit is or will soon be available; (c)(2) makes you either consider applications in the order received against written criteria handed over with the form, or refund everyone not selected; (d) requires an itemized receipt. This version took effect January 1, 2026.

What Do Washington and Colorado Require?

Washington has no dollar ceiling but a hard precondition. Under RCW 59.18.257(1)(a), before obtaining any information about a prospective tenant you must notify them in writing or by posting: what will be checked, what can cause a denial, the reporting agency's name and address with the applicant's free-copy and dispute rights, and whether you take a reusable report. Only then may you charge, and in-house screening is capped at actual costs no greater than a local service's customary charge. Subsection (3) caps a violation at $100.

Colorado polices even-handedness. Under C.R.S. 38-12-903 (2024 consolidation, amended by HB 23-1099 in August 2023) the whole fee must cover processing costs, actual or average per applicant; it must be identical for every applicant to that unit or any unit offered at the same time; each applicant gets a disclosure or itemization plus a receipt; unused money returns on a good-faith effort within 20 days. And no fee at all where the applicant supplies a portable screening report under 38-12-904(1.5).

Can You Charge One in Ontario or British Columbia?

No, in both. Section 134(1)(a) of Ontario's Residential Tenancies Act, 2006 bars collecting or attempting to collect "from a tenant, prospective tenant or former tenant of the rental unit a fee, premium, commission, bonus, penalty, key deposit or other like amount of money whether or not the money is refundable." That subsection opens with "Unless otherwise prescribed," and the exceptions sit in O. Reg. 516/06, section 17: keys at direct cost, a refundable key deposit, bank NSF charges, a $20 NSF administration charge, four narrower items. An application fee is not among the nine. Section 135 lets a prospective tenant claim it back.

British Columbia says it plainly. Section 15 of the Residential Tenancy Act: "A landlord must not charge a person anything for (a) accepting an application for a tenancy, (b) processing the application, (c) investigating the applicant's suitability as a tenant, or (d) accepting the person as a tenant."

JurisdictionApplication / screening feeSection read
CaliforniaOut-of-pocket cost; statutory $30 per applicant (1998, CPI-adjustable); itemized receipt; order-of-receipt or refundCiv. Code 1950.6(b), (c), (d)
WashingtonNo dollar cap, but no charge until the screening disclosure is given; up to $100 penaltyRCW 59.18.257(1), (3)
ColoradoProcessing cost only, identical for all; disclosure, receipt, refund in 20 daysC.R.S. 38-12-903
OntarioProhibited; not a prescribed exceptionRTA 134(1)(a); O. Reg. 516/06 s. 17
British ColumbiaProhibited for accepting, processing or investigatingRTA 15

What This Means for Your Application Flow

Two of these five make the fee unlawful; the other three make the paperwork the risk. One flow charging everyone identically will breach at least one. This is information, not legal advice: rules change and vary by municipality. LetHub answers rental inquiries in about 30 seconds and books ID-verified showings, so applications come from people who toured. See how long screening takes, or book a demo.

Frequently Asked Questions

Can you charge a rental application fee in Ontario?

No. Section 134(1)(a) of the Residential Tenancies Act, 2006 bars collecting a fee or other like amount from a prospective tenant unless otherwise prescribed, and the exceptions listed in O. Reg. 516/06, section 17 do not include an application fee. A prospective tenant can seek repayment.

What is the maximum rental application fee in California?

Civil Code 1950.6(b) sets two limits: your actual out-of-pocket cost of gathering the information, and thirty dollars per applicant (a 1998 figure the same subdivision allows to be adjusted annually for CPI increases). Out-of-pocket cost is the binding limit in practice.

Does Washington cap screening fees?

No dollar cap. RCW 59.18.257(1) instead requires written or posted disclosure before you obtain any applicant information: the data accessed, denial criteria, the reporting agency's details, and whether you take a reusable report. Charge without it and subsection (3) caps liability at $100 plus fees.

Can a Colorado landlord charge applicants different fees?

No. C.R.S. 38-12-903(2) requires the same fee for every applicant to that unit, or any unit offered at the same time. The fee must go entirely to processing costs, every applicant gets a disclosure or itemization plus a receipt, and unused amounts return within 20 days.

Keep your leasing team happy and organized

Learn how LetHub can cut down vacancy while maintaining a human touch.
Demo Now

Author
Mark Johnson

Check out related blogs and PM stories

Subscribe to get free access to all content.

A small four-unit apartment building with its shared front entry propped open and a single lockbox visible on one upstairs unit's door down
5 min

Self-Showings in Small Multi-Unit Buildings

A duplex or small building means two doors, not one, plus other tenants' common-area rights. What rental-stock data and the CA and BC statutes say.

Read more arrow pointing
A rotary-style desk phone handset resting on a table, its cord trailing off into a soft blur that dissolves into a faint grid of small
5 min

Do Renters Notice They're Talking to an AI?

No public study measures AI-voice detection on calls. Six things to push on during a test call, and where disclosure law actually requires an answer.

Read more arrow pointing
A phone screen glowing on a nightstand at 2 a.m. showing a missed-call notification, with a small red pipe-leak icon on a sticky note
5 min

Should an AI Voice Agent Take Emergency Calls?

Emergency repair clocks are jurisdiction-specific and all start at notification. What HUD, California and BC require of an after-hours answering setup.

Read more arrow pointing