Application Fees

I own an apartment locating company and have always wondered about application fees at apartment complexes. I was wondering why more communities have not offered to waive this fee to obtain more applicants, and as a result secure more leases? Would this be a big burden on a particular community's budget? If not, then why not take a shot, especially in this market, at getting more people to apply when they visit, take a holding fee (non-refundable if approved), and with more applications there will be more leases?

I think as long as the fees arent outrageous, people will apply if they can feel comfortable with the idea of living there. Waiving an app fee is just icing on the cake but I dont know that it will do a whole to lease up a property.

Waiving application fees can be costly to Apartment Communities in more ways than just sacrificing the income or expense offset for the cost of screening the applicant. Frequently, the waiving of application fees is particularly appealing to individuals who are either unqualified or not as serious about moving, wasting the time of the management team especially when the promotion is ongoing.

I think it's a common practice to waive this fee. There are a number of factors considered prior to doing so but it's a good closing tool. That said, we must remain mindful of Fair Housing when offering to waive it.

Thanks for the post Keith - look forward to more.

M