Applying for a Rental Unit

Landlords use application fees to cover the costs of checking credit reports and processing the application. Application fees usually range from $25 to $35 per person, but landlords can charge any amount. Applying for a rental unit can add up: If it costs two roommates $50 each time they apply, their total expenses can rise quickly.

An application fee is often required as a fixed cost to compensate the landlord for checking credit reports and processing the application. Typically application fees are $25 to $35 per person, but there is no limit on what a landlord can charge for an application fee. Thus, applying for a rental unit can quickly become expensive if it costs two roommates $50 every time they apply.

Many applications say that if a potential tenant declines the rental after applying, they will lose their application deposit. Typically, there’s no grace period for backing out of the application once it is signed. If the landlord says a tenant can cancel the application and get the deposit back, it must be in writing in the application agreement.

Even without a signed application agreement, the landlord might still keep part or all of the deposit.

If a tenant has signed a lease and paid a security deposit or prepaid rent but does not move in, they usually can receive a full refund only if (1) the tenant finds a replacement tenant approved by the landlord and (2) the substitute tenant moves in by the lease start date.

If the landlord finds a replacement tenant, they can take money from the security deposit or rent prepayment. This can cover any agreed lease cancellation fee or actual costs, including the time spent finding a new tenant.

Ask to see the specific apartment or house that you would actually rent. Do not rely only on a model unit. A model may be in better condition than the unit you will get.

Get any promises from the landlord or leasing agent in writing. The application should include:

• the unit number;

• the rent and security deposit;

• the move-in date and length of the lease;

• the names of everyone who will live there;

• information about pets and pet deposits;

• any utilities the landlord will pay;

• promises to make repairs, paint, clean, or do other work before you move in; and

• other terms that will be included in the lease.

Make sure the application lists the terms you agreed to. If you later refuse to sign a lease because the terms are different, you could lose your application deposit.

Also, get a copy of the application after you sign it.

While the application should say how long it will take to process, ask the landlord, too. Under Texas Property Code 92.352, an application is considered rejected in certain cases if the landlord does not give notice within seven days after accepting the application or application deposit.

The landlord may give notice by phone to the applicant, co-applicant, or someone who lives with either of them. The landlord may also send notice by mail if it is postmarked by the seventh day.

If the application is rejected, the application deposit should be returned.

A landlord may ask for more money or a co-signer if you have poor or limited credit or rental history.

A co-signer, also called a guarantor, agrees to be responsible if you do not follow the lease. For example, the co-signer may have to pay money you owe under the lease.

A guarantor is usually responsible only for the original lease term. However, Texas Property Code 92.021(c) and (d) allows a guarantor to be responsible for a lease renewal in some cases.

Read the lease carefully before agreeing to co-sign for someone.

Before you pay money, ask:

• Which utilities are included in the rent?

• Does the unit have air conditioning and heat?

• Are the appliances gas or electric?

• About how much are utility bills in summer and winter?

• What rules does the property have?

• What are the parking rules?

• How long is the lease?

• When and how do I pay rent?

• How much are the late fees?

Make sure you understand the answers before you apply, sign anything, or pay a deposit.