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What Are Typical Application Fees in Boise, ID?

What Are Typical Application Fees in Boise, ID?

The latest Boise real estate report shows that now is a great time to invest in rental properties in the city. The city's population is on the rise, and the supply of rental properties is keeping pace, preventing any major market upsets.

Purchasing an investment property during a time of high demand isn't all there is to earning rental income. You'll also need to find the right tenants through a reasonable application process.

What are the typical fees associated with Boise rental applications? Read on to find out from a top Boise property management company.

What Are Application Fees For?

Thorough tenant screening will reveal useful information about an applicant's financial standing and renter history. Application fees are used to cover the hard costs associated with this process. For example, a landlord may use the fee to cover the cost of a credit or background check.

You're not required to charge an application fee, but it's common practice to do so. Without one, you'll need to cover these costs out of pocket.

When Do Applicants Pay Application Fees?

As you might expect, landlords collect application fees when they collect applications. You shouldn't collect applications or fees for rental units until you know when they'll be available. In other words, don't start taking applications until you know current renters do not intend to renew their lease.

What if multiple people are applying to live together? Some landlords will only charge an application fee for the "primary renter," who will be held responsible for things like late rent payments. Others charge application fees for everyone over 18 on the application.

Do Laws Limit Application Fee Amounts?

Idaho state laws do not limit application fees, but our local laws do. If your rental property is located in Boise, you can't charge more than $30 per application fee.

Some applicants may come in with their credit history available for viewing. You can choose to wave the fee and look at the applicant-provided report, but you don't have to.

Do You Need to Provide Receipts?

Local law also dictates that you must provide applicants receipts detailing the use of their application fee. Don't collect fees if you don't intend to use them.

Can you claim that the application fee covers the cost of showing the rental unit? While some landlords will use application fees to pay for administrative labor, you're better off sticking to credit reports and background checks. Without the help of a property manager, it's easy to get into murky legal territory.

Need Help With Tenant Screening? Hire a Boise Property Management Company

If you're not screening your tenants, you're not making the most of Boise's thriving rental market. If you're not charging typical application fees, you may be taking on costs you don't need to cover out of pocket.

Staying on top of state and local landlord laws while taking care of your property and your tenants is a tall order. Next Step Realty Management is a top-rated Boise property management company with over 20 years of experience. Contact us to partner with local real estate experts who stay up to date on all the latest property management trends.