Tell them up front you will take the most qualified applicant. Then make sure you screen them that way and don’t violate any Fair Housing laws. Also let them know up front whether any part of the $25 is refundable or not.
Does anyone have a suggestion on handling tenant application turn downs? Meaning if you have several tenants applying for the home and the fee is $25; how do you tell the rest they are not approved? We are doing this piece meal and are not in the application business. We appreciate your thoughts. Thanks.
Treat rejected tenants with respect. Most (but not all) will understand and appreciate a rejection letter which stresses that they had a satisfactory application but that there was great demand for the unit and that as much as you would like to satisfy all applicants, only one and only the most qualified applicant can be selected.
I don’t think you can collect fees unless you have a specific cost associated with them. For example, if you run a credit check and that costs $20, then you can collect for that. But I don’t think you can charge $10 for your time.
I agree with Dew that you need to inform applicants if the fee is not refundable. Again, if you collect a fee for a credit check, but don’t run it, I think you have to refund the money.