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Landlord rented to someone else's and kept my application fee?


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2014 May 12, 3:10pm   9,419 views  17 comments

by BayArea   ➕follow (1)   💰tip   ignore  

Hi guys, hoping to get some advice from all of you.

I've been applying for a rental home here in San Mateo/Burlingame.

I submit an application this weekend and send in $30x2 credit check for my significant other and I.

The landlord contacts me today and says he has selected another party to rent the place. I tell him no problem and to return the application fees.

He says he ran the credit report and the fee is non refundable. In all my years of renting and as a landlord myself, that application fee has always been returned to any parties that aren't offered the property. I mean on the application it even specifies a return address for the application fee to be returned.

What are the laws and/or etiquette on this?

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1   FuckTheMainstreamMedia   2014 May 12, 3:14pm  

Isn't $60 like 1/100,000,000 of monthly rent in the Bay Area?

2   swebb   2014 May 12, 4:07pm  

Can't say I know about laws, particularly in CA...but my brother and my father both charge a nominal fee (probably about the same as what you paid) for an application, and I don't think they ever refund it if the tenant isn't approved or otherwise doesn't rent the place.

There usually isn't a whole lot of time that elapses between getting the fee and signing the lease, though...so I think it's not that common that they are "tenant shopping" (though when they do have multiple parties interested, they definitely cherry pick the best one)...more common is that the first guy in the door gets the place assuming their background/credit is fairly good...it's also somewhat common for them to reject a tenant due to bad credit even if they don't have another interested party.

Etiquette? I think being upfront about what the fee is for and what it does / doesn't mean is probably a good thing to do.

From their perspective running the credit check is just a way to protect themselves from deadbeat tenants...they aren't committing to that person even if they do pass with flying colors -- just as the tenant isn't committing to renting the place if they are accepted. The only way the prospective tenant gets some "first in line" consideration is if they submit their deposit and signed lease along with the application...that way if they pass the credit check, it's a done deal...no backing out. It's still a bit lopsided in favor of the landlord, as they make the final call..but the reality is that a decent credit history + a deposit in hand pretty well seals the deal.

3   thomaswong.1986   2014 May 12, 4:28pm  

BayArea says

He says he ran the credit report and the fee is non refundable.

And so it is... a fee for services is different from a refundable deposit.

4   clambo   2014 May 12, 5:44pm  

I think the fee is non-refundable because the landlord paid it to get the credit reports.

Too bad because this is a lot of money to throw down the drain for you.

I think credit agencies are a giant ripoff but they've got a near monopoly.

Perhaps you can get one for yourself for free and keep it on hand to show to potential landlords.

5   New Renter   2014 May 12, 10:35pm  

Check your credit report to see if the landlord did indeed do as he said. If not he probably took all the applicants money as a nice little tax free bonus. Not much you can do about it other than find out where he lives and leave a flaming bag of poop on his porch.

6   Facebooksux   2014 May 13, 1:23am  

I think the big picture question is:

Why are you such a loser since you have to rent?

You've been priced out FOREVER.

7   donjumpsuit   2014 May 13, 1:39am  

I typically don't apply to places that require a fee to run credit reports.

I have my own report that I can provide to them. If they don't believe it's current, or real, they can check it themselves, or lose a great tenant.

If I REALLY want the place, I make them verbally commit to me as a tenant prior to the fee being paid, and only a negative result would break this agreement. Since my report is of high quality, this is obviously just a routine procedure.

In fact, if I even detect they are collecting fees from many applicants, or immediately dismiss me bringing my own report, I see that as the beginning of a landlord/tenant relationship that I DON'T want to have and look elsewhere.

There is no shortage of homes for rent in the bay area. This much is guaranteed.

8   donjumpsuit   2014 May 13, 1:40am  

Also,

Ask for a copy of both those reports. You are entitled, and if he does not provide them, then you can rattle his cage by suggesting some sort of lawsuit in small claims court.

9   Shaman   2014 May 13, 1:43am  

APOCALYPSEFUCKisShostikovitch says

Drive up to the landlord's house and let go of a few minutes of Gatling gun fire into the sky. When he comes out, ask for your $60.

I don't think you understand how expensive ammunition actually is. .50 caliber bullets are approximately $5 each, and assuming a fire rate of 500 rounds per minute with a standard full auto BAR or similar for two minutes, that's $5,000 in hot lead to get $60.

I'd still go with the flaming poo, it's cheap.

10   zzyzzx   2014 May 13, 1:49am  

Obligatory:

11   FortWayne   2014 May 13, 2:07am  

donjumpsuit says

Also,

Ask for a copy of both those reports. You are entitled, and if he does not provide them, then you can rattle his cage by suggesting some sort of lawsuit in small claims court.

12   BayArea   2014 May 13, 2:10am  

Thanks for the reply guys.

As someone who has rented out several properties over the years and is himself a landlord, this is the first time I've experienced this on either side of the fence.

With the rental application, you have a lot of information to prescreen off of. I've always performed this prescreen, proceeded with a credit check of just that applicant, and returned everyone's money who is not being offered the property.

I understand that some landlords want the whole story and want all applicants credit reports, but I think the way he went about it is sort of over the top/sleezy.

I will go ahead and ask for the credit reports and go from there.

Thanks.

13   BayArea   2014 May 13, 2:22am  

donjumpsuit says

There is no shortage of homes for rent in the bay area. This much is guaranteed.

Have you heard of the Peninsula? ;-)

14   corntrollio   2014 May 13, 8:34am  

BayArea says

I submit an application this weekend and send in $30x2 credit check for my significant other and I.

The landlord contacts me today and says he has selected another party to rent the place. I tell him no problem and to return the application fees.

He says he ran the credit report and the fee is non refundable.

This is not prohibited by law, AFAIK, but it is bad form. A more legit person would do what you said -- figured out who the top choice is, get that person's credit report, and return everyone else's money. Assuming that you didn't get rejected solely because of bad credit, this guy is a douchebag.

Agree that I would ask for the credit report and then move on.

15   BayArea   2014 May 13, 10:02am  

corntrollio says

BayArea says



I submit an application this weekend and send in $30x2 credit check for my significant other and I.


The landlord contacts me today and says he has selected another party to rent the place. I tell him no problem and to return the application fees.


He says he ran the credit report and the fee is non refundable.


This is not prohibited by law, AFAIK, but it is bad form. A more legit person would do what you said -- figured out who the top choice is, get that person's credit report, and return everyone else's money. Assuming that you didn't get rejected solely because of bad credit, this guy is a douchebag.


Agree that I would ask for the credit report and then move on.

That's my sentiment as well, both as a renter and a landlord.

And I was told that my application was very attractive and met his requirements but he decided to go with someone else.

Not returning the money is indeed in very bad form.

17   New Renter   2014 May 13, 1:15pm  

BayArea says

Thanks for the reply guys.

As someone who has rented out several properties over the years and is himself a landlord, this is the first time I've experienced this on either side of the fence.

With the rental application, you have a lot of information to prescreen off of. I've always performed this prescreen, proceeded with a credit check of just that applicant, and returned everyone's money who is not being offered the property.

I understand that some landlords want the whole story and want all applicants credit reports, but I think the way he went about it is sort of over the top/sleezy.

I will go ahead and ask for the credit reports and go from there.

Thanks.

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