Non-refundable application fees (apartment, rental, credit report, owner)

[snowmountains]

So we saw an apartment which we like. The problem is it is a coop and requires a non-refundable application fee. That is fine if we get the apt eventually. However, there is already a long list of names of people who, just like us, have seen the place and presumably applied. Naturally our concern is, after handing in the $$$ fee, be told that someone else has been approved before us (we are sure we would qualify). Any insight on this? There is no way to know whether the coop board is still considering more applicants or already has some winner in mind. The application fee is free money, the more applicants, the better, isn't it?

[Lacerta]

Originally Posted by ssww

So we saw an apartment which we like. The problem is it is a coop and requires a non-refundable application fee. That is fine if we get the apt eventually. However, there is already a long list of names of people who, just like us, have seen the place and presumably applied. Naturally our concern is, after handing in the $$$ fee, be told that someone else has been approved before us (we are sure we would qualify). Any insight on this? There is no way to know whether the coop board is still considering more applicants or already has some winner in mind. The application fee is free money, the more applicants, the better, isn't it?

Not necessarily. Yes, if someone has been approved before you even turn in paperwork, they shouldn't take your money. But if 15 people apply, they have to do rental history checks and pull credit reports, etc on all those people. That means they have the expense of the credit report itself, plus someone's time to make all the calls and whatnot. At our office, we charge $15 if you provide your own credit report from AnnualCreditReport.com or $30 if we have to pull the credit report, and it is nonrefundable, no matter how many apply, because I have time into researching which person we want to take.

Oh, and Experian just raised their rates. It now is $100 a month just to be a member (used to be $25) and have access to pull credit reports, plus the cost of each report. The application fees help cover expenses like that.

[snowmountains]

It is not only credit check but registration fee, coming to $350ish.

[Lacerta]

Ok, well $350 non refundable is rediculous, to me. There is no reason for that.

[Ultrarunner]

Must not be in CA... there is no such thing as a non-refundable fee here... except for amount regulated by law for application check... something around $40 last I checked.

[snowmountains]

Sure enough it's not in CA--it's in NYC Wish to be in CA

[lolivang]

I recently paid $120 to have a credit check done to qualify for a home for rent. After 7 days, the owner emailed me to say that they decided to take the home off the market. Just a I'm sorry. Do I have the right to ask for my fee back?

[Rabrrita]

Originally Posted by lolivang

I recently paid $120 to have a credit check done to qualify for a home for rent. After 7 days, the owner emailed me to say that they decided to take the home off the market. Just a I'm sorry. Do I have the right to ask for my fee back?

The laws concerning application fees are state specific. What state are you in?

[NoMoreSnowForMe]

Originally Posted by lolivang

I recently paid $120 to have a credit check done to qualify for a home for rent. After 7 days, the owner emailed me to say that they decided to take the home off the market. Just a I'm sorry. Do I have the right to ask for my fee back?

I'd ask for it back. You weren't denied, he took the rental off the market.

Regardless of what any application fees are allowed where you live, in this case, I'd demand my money back.

[Ohky0815]

There are places around here that are non refundable but their fees arent high. i would go ahead and apply. You never know what might happen.