I had to drive 3.5 hours to another state to get a great idea!

My good and local friend Brandon, who I see EVERY MONDAY on our LL Lunchtime Zoom, attended Convention. As we chatted during a break he gave me a great idea.

We all have this problem - sometimes when an applicant is denied they want their app fee returned. But I already paid a helper to verify the info on their app. There is a real and valid expense to processing an app.

(before some judge too quickly, the app form gives the prospect 7 basic criteria to consider BEFORE submitting and paying for an app. We all knwo they do anyway.)

I have to write a response to PayPal to keep the measly $25 for my helper AND to keep my good reputation/rating with PayPal.

Seriously considering changing the wording to 'Application Processing Fee with verbiage about the labor involved.

Any suggestions?

None refundable application fee. $25

I use a third party service. I send a link, the prospect fills in the data , a copy of the application and a credit report is emailed to me. I have the option of marking up the price, but I do not do so. $19.95 per person is the fee.

I like that I don’t have to do the data entry work.

Back when I had another business and pulled hundreds of credit applications per month, the cost was well under $5.00 .

It seems that the good applicants aren’t put off by application fees; $79. Is the going rate here.

I believe this is my second time meeting Brandon and I am impressed with him. He has his act together.

There are companies out there that charge the tenant for screening services and then email you the results. They load up the data and pay for the screening. All I get is an email. Where my screenings cost about $34.95 for me to do them, they are $42 for the tenant to do the work.

My app is clear: Non-Refundable App Fee. PayPal does not care.

We only have 1 out of 100 that ask for a refund.

AND they are usually kinda pizzy about it so refunding does not gain me any goodwill or stop them from posting negative stuff online.

BRAD

I have been including this information with my initial reply to the prospective tenants:

* All adults (age 18 or up) who will be residents must complete an application and sign the lease if approved.

* Combined household net income (bring home pay) per month must be at least 4 times the rent.  For example if rent is $800, take home pay must be a minimum of $3,200 per month.  Income must be documented by pay stubs, bank statements, etc.  "Under the table" or non-reported income will not be considered.

* Acceptable rental references.**  For first-time renters, an additional deposit or co-signer may be required.

* Acceptable credit history.**  We are not looking for a specific score, and a bad score or no score does not automatically disqualify your application.  We want to see bills being paid on time.

* No evictions.

* Acceptable back ground check.

* Have a bank account (checking or savings) that can be used to auto-pay rent

As you would expect, people took to their keyboards to post about their outrage at my requirements.

There is a rapidly increasing number of people who must be avoided. They are vengeful, and they can’t learn life lessons. Instead they use customer feedback, user ratings, and the courts to punish anyone who they disagree with.

We simply cannot rely on advertising platforms that give consumers a voice to impugn us. The customer is not always right.

Sisco: That's a good bulleted list.

Rather than in the ad, I'm thinking maybe I need to put that on the automated email they get along with the link to the pre-qual questionnaire.

But, the questionnaire is free anyway (so they could become confused)and I have no interaction yet.

Oh, yeah - to answer the original question:

I agree with Gkarl to explore a different application fee payment system, since the problem seems to lie with PayPal.

I used to tell my prospects that I would hold their app for up to six months if they were a good app and didn't get in what I had at the time.

Just started, and have yet to use, charging for applications. Is there a time frame that would be acceptable? Don't want to make it a one and done. If for no other reason than a good applicant could be tough to find.

We use Buildium, who seems to use TransUnion, to host the application and to process the fees. We tell prospects that the fee is non-refundable so don't apply unless they are sure they want it - that WE don't collect the fee, the company who does the work does.

I think that "application processing fee" is a good idea.

My info sheet that they fill out for the credit report and screening is titled Permission To Run Credit Report and it says very clearly that the fee is non-refundable. It also lists all the things I can and might (or might not) do to screen. This is where home inspection is listed, so they not only know, they have agreed and signed for it.

I show my written criteria so they can save their fee if there is anything obvious that would keep them from qualifying. I don't want to waste any more time with the no-hopers. I'm not making any money on the application fee and it is a PITA to do the screening and finding the legal reason to reject. I'd rather that they not apply to begin with.