A rental application fee is a nonrefundable, per-applicant charge that covers the cost of screening a prospective tenant — credit checks, criminal background searches, income verification, and eviction history. Fees nationally run $25 to $75, averaging around $50. Virginia law caps the fee at $50 per applicant, exclusive of actual third-party screening costs a landlord can document.
What does a rental application fee actually pay for?
An application fee isn't just a gatekeeping charge — it's meant to cover the real cost of vetting a prospective tenant before handing over keys to a home. A thorough screening typically checks:
- Credit history and score
- Criminal background records
- Income verification, usually confirming gross income of at least three times the monthly rent
- Employment verification
- Landlord and personal references
- Eviction history in prior counties or states
Running all of that through a credit bureau or tenant-screening service costs money, and the fee is how landlords recover it without eating the expense on every applicant who doesn't end up renting the unit. A property manager processing dozens of applications a month depends on this fee to keep screening consistent and thorough rather than cutting corners.
What's the maximum application fee in Virginia?
Under the Virginia Residential Landlord and Tenant Act, Va. Code § 55.1-1203, an application fee cannot exceed $50 per applicant. That cap is exclusive of any actual out-of-pocket expenses a landlord pays to a third party to run background, credit, or other pre-occupancy checks — meaning a landlord can charge more than $50 only if they can document that the extra amount reflects real third-party screening costs, not padded profit. For units that are public housing or otherwise regulated by the U.S. Department of Housing and Urban Development, the cap drops to $32.
It's worth noting that Virginia's July 1, 2026 landlord-tenant law changes — new rent and deposit payment-method requirements, a cap on payment processing fees, and the extension of the nonpayment eviction notice from 5 to 14 days — did not touch the application fee cap itself. A separate amendment to § 55.1-1203 adding new upfront disclosure requirements (fee and deposit amounts, tenant selection criteria, and consumer reporting rights) is on the books but does not take effect until July 1, 2027, so it isn't the current law yet.
Application fee vs. application deposit: what's the difference?
These two terms get used interchangeably, but Virginia law treats them as distinct charges with different rules:
- An application fee is nonrefundable. It compensates the landlord for the cost and labor of screening, whether or not the applicant is approved.
- An application deposit is refundable. It's money paid to reserve consideration for the unit, and a landlord can require both a fee and a deposit at the same time.
A landlord who collects only a fee never owes a refund, provided the fee is spent doing what it's supposed to do — actual screening. A landlord who also collects a deposit owes that money back, minus documented costs, if the applicant doesn't end up renting the unit.
| Application fee | Application deposit | Security deposit | |
|---|---|---|---|
| What it's for | Covers screening costs (credit, criminal, income, employment, references, eviction history) | Reserves consideration for the unit while the application is pending | Covers unpaid rent or damage beyond normal wear once a tenant moves in |
| Typical amount | $25-$75 nationally; capped at $50 in Virginia | Varies by landlord; often equal to part of one month's rent | Commonly one month's rent |
| Refundable? | No | Yes, minus documented expenses and damages | Yes, minus documented deductions, at move-out |
| When it's paid | At the time of application | At the time of application, alongside the fee | At lease signing, before move-in |
Are application fees refundable in Virginia?
Generally, no. The application fee itself is designed to be nonrefundable because it pays for work the landlord has already done — running the credit report, checking criminal records, verifying income and employment — regardless of whether the applicant ultimately signs a lease.
The application deposit is a different story. If an applicant doesn't end up renting the unit, whether because they withdraw or the landlord rejects the application, Virginia law requires the landlord to refund all deposit funds in excess of actual expenses and damages, along with an itemized breakdown. That refund is due:
- Within 20 days of the failure to rent or the landlord's rejection, in most cases
- Within 10 days if the deposit was paid by cash, certified check, cashier's check, or postal money order, and the reason for not renting was the landlord's rejection of the application
If a landlord collects a fee but never actually runs the screening, that money generally should be returned, since the fee only covers costs actually incurred.
What should landlords charge for a rental application fee?
For landlords and property managers, staying inside the $50 cap (or documenting real third-party costs above it) isn't just a compliance matter — it's also the simplest way to run a fair, consistent screening process. A flat, disclosed fee applied the same way to every applicant reduces the risk of fair housing disputes and keeps the process predictable for renters comparing properties.
Century 21 Accent Homes, which has managed Northern Virginia rental properties as a family-owned business since 1972, charges a flat $50 application fee per applicant that covers the full screening package — credit, criminal, income verification at three times rent, employment, references, and eviction history — rather than layering on separate charges for each screening component.
Red flags renters should watch for
Not every fee request is legitimate. Renters in Virginia should be cautious if:
- The fee exceeds $50 with no explanation of third-party costs justifying the difference
- The landlord demands cash only, with no receipt
- A fee is requested before the renter has even seen the unit or a written listing
- The same landlord charges a fresh full application fee for every unit in the same building without disclosing that upfront
- A landlord refuses to explain what an application deposit covers or won't commit to a refund timeline
- There's no written tenant selection criteria or lease terms available before payment is collected
Paying an application fee is a normal part of renting in Virginia, but renters aren't obligated to hand over money to a landlord who won't answer basic questions about the amount, what it covers, or how a deposit would be handled.
Frequently asked questions
Can a landlord charge more than $50 for a rental application in Virginia?
Only if the extra amount reflects actual out-of-pocket costs paid to a third party for background, credit, or similar checks, and the landlord can document those costs. Without that documentation, $50 per applicant is the ceiling under Virginia law, or $32 for HUD-regulated units.
Do I get my application fee back if I don't get approved?
No, not for the application fee itself — it's nonrefundable because it pays for screening work already performed. If you also paid a separate application deposit, that money is refundable and must be returned, minus documented expenses, within 20 days (or 10 days in certain cases).
Can a landlord charge an application fee and a security deposit at the same time?
Yes, but they serve different purposes at different points in the process. The application fee and any application deposit are collected when you apply, before you're approved. The security deposit is a separate charge, typically equal to one month's rent, collected at lease signing after you've been accepted as a tenant.
*This article is general information, not legal advice.*
Family-owned property management company serving Northern Virginia since 1972. NARPM member, NVAR member, and National Association of Realtors® member with over 50 years of experience managing residential rental properties.
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