Tenant Screening Fees: Who Pays and How Much
May 24, 2024Screening fees cover the actual cost of pulling a credit and background report — they're not meant to be a profit center, and a number of states regulate them specifically for that reason.
Who typically pays
In most cases, the applicant pays the screening fee directly to the landlord or the screening company, since they're the one requesting to be evaluated. LeasePilot HQ's screening flow charges the fee directly to the applicant on the screening provider's secure page — the landlord's cost to run a screening is $0.
State limits on screening fees
Many states cap what an applicant can be charged for screening, and some require the fee be refunded or waived if you already have a report on file (e.g., through a portable tenant screening program) or if you don't actually run the check. Check your specific state's limit before setting a fee.
What the fee actually covers
A typical screening fee is built from:
- • The credit report pull
- • The criminal background search
- • In some cases, eviction history and identity verification
- • The screening company's processing cost — this is why the fee generally cannot legally exceed the landlord's actual cost in states that regulate it
Frequently Asked Questions
Can I profit from tenant screening fees?
Many states specifically prohibit charging more than the actual cost of screening — check your state's limit before setting a fee above what the screening actually costs.
What if two applicants split one unit — do both pay a screening fee?
Typically yes, since each adult applicant on the lease should be screened individually and the fee corresponds to each individual report.
Do I have to refund the screening fee if I deny the applicant?
Generally no, since the fee covers the cost of running the screening regardless of outcome — but always check your specific state's rules, since a few have refund requirements in specific circumstances.