I am asking for $40, un refundable to cover the cost of checking their credit rating. Is this legally or allowable in California?
I asked this from a person who gave me a signed application and they informed me it was illegal to ask for such a deposit.
Thanks for your help. Jane
3:51 pm January 5, 2009
shawndra
Member
posts 39
2
Jane,
It sounds like they just don't want to pay it. The price you are asking is quite a bit lower than most application/ processing fees. The going rate is $50. Background and credit reports are common practice for landlords now. Especially with the liability associated with renting to a known criminal. Allowing someone to live in your property is very much like a lending situation. Any lender would require a credit report to guarantee the applicant can pay each month.
We've also found that the application/ processing fee helps keep the applicant from “shopping around” and thus wasting your time and money.
I hope this helps. Please let me know if there is anything else I can help with.
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