Rental application fees are a common part of the leasing process, but they’re increasingly regulated at both state and city level. This guide covers how much you can charge, when fees must be refunded, what disclosures are required, and how to avoid legal pitfalls in Oregon, California, and beyond.
Key takeaways
- Oregon: Actual screening cost only; must disclose criteria and provide refund if unit not available.
- California: 2025 cap is ~$63.70 per applicant, adjusted by CPI; receipts and partial refunds required by law.
- Local overlays (Eugene, Portland, San Francisco, etc.) may add lower caps or ban fees altogether.
- National trend: regulators scrutinizing “junk fees”—always keep your process and records clear.
Oregon: Application Fee Rules
Under ORS 90.295, Oregon landlords may only charge a screening fee reflecting the actual cost to process an application (background/credit check, admin time). There’s no state-set dollar cap, but the fee can never exceed the actual out-of-pocket cost or the market norm. If no units are available, it is illegal to collect a fee.[1]
- Before accepting the fee, landlords must provide written screening criteria, nondiscrimination policy, and information about available units.
- Disclose fee amount and screening method in writing before collecting payment.
- If the application isn’t processed, or if the unit is unavailable, refund the fee within a reasonable time.
- Some cities (like Eugene) cap fees lower (e.g., $10)—always check your local ordinances.[2]
California: Application Fee Rules
California Civil Code §1950.6 limits 2025 application fees to approximately $63.70 per applicant (CPI adjusted). The fee must reflect actual screening and processing costs—no profit allowed. If the cost is less than the cap, charge only the actual cost.[3]
- Provide a written receipt or itemized invoice for the fee.
- If the applicant is not selected or the full fee is not used, refund the unused portion within 7 days of notice or 30 days of application (whichever is sooner).
- Do not collect a fee if no unit is available, unless the applicant agrees in writing.
- Local laws (San Francisco, LA, etc.) may add stricter rules or require interest/refund on deposits.
Other States & National Trends
- Most states require that fees reflect actual screening costs, and may require full refund if no screening is performed.
- Local ordinances (e.g., NYC, Chicago, Seattle) may cap or prohibit fees—always check your city’s regulations.
- The Federal Trade Commission and Consumer Financial Protection Bureau have begun scrutinizing “junk fees” in housing. Staying transparent and consistent is your best defense.[4]
Fee Limits by State (2025)
| State/City | Max Fee (2025) | Refund/Disclosure Required? | Source/Notes |
|---|---|---|---|
| Oregon | Actual cost only | Yes (required by ORS 90.295) | Local caps in some cities (Eugene: $10) |
| California | ~$63.70 | Yes (written receipt, refund unused portion) | Adjusted annually for CPI |
| New York City | $20 (screening only) | Yes | NYC Admin Code §26-802 |
| Eugene, OR | $10 | Yes | Eugene City Code 8.425 |
| Most States | Actual cost | Often | Always check state/local law |
Best Practices & Compliance Checklist
- Always provide written screening/admission criteria before accepting a fee (Oregon & best practice everywhere).
- Give a receipt showing the fee amount and what it covers (California and elsewhere).
- Never charge if no unit is available—unless the applicant agrees in writing.
- Keep documentation of your actual screening costs for at least 2 years.
- In cities with local caps or bans, follow local rules even if less restrictive than state law.
- Refund any unused portion of the fee as required by law (especially in California).
- Apply your process and criteria consistently to all applicants to avoid discrimination claims.