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yes.. if you didn't break any local laws and make sure you pay taxes on that. Oh.. make sure you are ready for lawsuit if you plan to do make money this way.
On what basis? Only problem I can see is some clever prosecutor charges you with running an illegal lottery...
An note that a percentage of LLs are an ugly breed. Read the renting list for a while. Tenants can be less than charming as well but their is clearly a set of LLs who will do anything to make a buck.
On what basis? Only problem I can see is some clever prosecutor charges you with running an illegal lottery...
An note that a percentage of LLs are an ugly breed. Read the renting list for a while. Tenants can be less than charming as well but their is clearly a set of LLs who will do anything to make a buck.
If it's not costing you $200 to screen a tenant and simply collect $200 as a way to collect profit, it's illegal.
If you are going to collect 1500 applications and run a screening for all of them, you better have all the paper work/records of them or you will be most likely charge for fraud.
Does this stuff goes on.. I am sure and probably in smaller amount like $35-$50 application fees in smaller volume.. but for $200/app and 1500 applications..
If it's not costing you $200 to screen a tenant and simply collect $200 as a way to collect profit, it's illegal.
If you are going to collect 1500 applications and run a screening for all of them, you better have all the paper work/records of them or you will be most likely charge for fraud.
Does this stuff goes on.. I am sure and probably in smaller amount like $35-$50 application fees in smaller volume.. but for $200/app and 1500 applications..
The statue that you are using application fee for profit. Like I said. You may have collected 1500 applications along with $200 per application and have records of all your expense (report of each application). It may have cost you close to $200 to do the report. The key is did you actually process all those application? If you did, no problem. Otherwise, what you are doing is similar to other rental fraud that will be reported to FTC.
The statue that you are using application fee for profit. Like I said. You may have collected 1500 applications along with $200 per application and have records of all your expense (report of each application). It may have cost you close to $200 to do the report. The key is did you actually process all those application? If you did, no problem. Otherwise, what you are doing is similar to other rental fraud that will be reported to FTC.
What statue are you looking for? Something that tells you it's illegal to collected application fee as a way to make profit? Look up New York Landlord's Law Book. Like I said, there is no problem if you can show that you process the 1500 applications and show justification for the cost.
Do a search for "fraud" to find the statute. The landlord is collecting the application fees under false pretenses. Pretending they're needed for the background checks. But actually using them for self enrichment. Obtaining money under false pretenses is fraud.
Do a search for "fraud" to find the statute. The landlord is collecting the application fees under false pretenses. Pretending they're needed for the background checks. But actually using them for self enrichment. Obtaining money under false pretenses is fraud.
Nope. There is no commitment by the LL to do anything. There may be a specific law in some states or city that cover it but I don't know of one and I am pretty certain that there is none in NV.
The LL does not commit fraud. He collects a fee to consider an application. If he commits to do any specific task he may have a problem but there is no reason for him to do so. And it would be tricky to write a law that covers it. Perhaps one that requires considering only one tenant at a time and in the order received. But that law does not exist in most states.
I would suspect some version of this has occurred more than once. Anybody know of an example.
A landlord can simply state that the fee is used for processing the application. Many landlords also charge administrative fees...which is also very legal
I have been told that - in my state at least - landlords are supposed to process each application sequentially, not in batch......-
You are in Oregon, so whoever told you that was misinformed. Applications do not have to be processed in order, and the first to qualify does not have to be selected. Landlord can accept the best qualified applicant.
The only trick is that whatever criteria the landlord uses to determine "best" had better not be illegal. Best credit score is OK but thinking a family with no children is better than a family with two kids can get you into trouble.
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