What Are Typical Application Fees in Tampa, FL?
Last year, out-of-state movers to Florida hit the highest level in nearly two decades. With so many people moving to the state, rental property owners have a lot of opportunities to find tenants.
To ensure you are filling vacancies with quality residents, you need tenant screening. Running background checks in Tampa, Florida, can cost you a lot of money, especially if you have a lot of applicants.
Charging application fees means less money coming out of your pockets. Keep reading to learn how a property management company can help.
Typical Rental Application Fees
Rental application fees are collected by landlords when a prospective tenant submits their application. The funds go towards the hard cost of processing the rental application.
The law in Florida doesn't require landlords to charge rental application fees. Without one, landlords will have to use their own funds to conduct standard background and credit checks on potential tenants.
These checks are essential to finding great tenants to fill vacancies. You should never skip them. The fee gives you insights into:
- Eviction history
- Credit checks
- Income verification
- Criminal history
A property management company can collect applications and fees, schedule screening, and review documents.
Florida doesn't require you to provide an itemized list to applicants of how you spend their fees. It's good practice to provide them with this information anyway.
Who Pays Rental Application Fees?
Because these fees are used to run background checks on rental applicants, every person on the lease must pay the fee. Background checks are completed individually so the costs are individual.
When a prospective renter submits their rental application, the fee should be paid along with it. Landlords should include a deadline for paying the fee.
Application fees are non-refundable even for a denied applicant. Make sure this is on the application to avoid any conflicts with applicants.
By asking for this fee, you discourage applicants who aren't sure about renting your available units.
How Much Can You Charge?
The amount you choose to charge might depend on the types of properties you are filling. In a desirable area with high rent, you might be encouraged to charge more.
The most common fee landlords charge is $30 per applicant. You can obtain criminal history information through Florida's legislature for $24.
In Florida, you can adopt the idea of market-based fees because the state doesn't limit the amount you can charge.
Some property owners have gotten away with charging $50-$200 per applicant. You might choose to charge closer to the average to keep prospective tenants happy from the start of their rental journey.
Hiring a Property Management Company
To better understand typical application fees, hire a property management company in Tampa, Florida. Florida is lenient when it comes to what you can charge, but you should still thoroughly understand the laws.
At PMI MetroBay, our property managers have been working in the local area for decades combined. Our full-service property management services can take on administration tasks involving applications and more.
We use state-of-the-art technology to inform you of your investments in real-time. We also keep tenants happy while renting a property by keeping them in the loop.
Contact us today to outsource your property management.
