I am a renter, and I have been renting here for several years now.  Today,
given that this is a renter's market, the issue of application fees isn't as
great, but it is still there, and it will come back when the market changes.

Whenever I have tried to find a new apartment, I have almost always had to
pay a fee, usually $50.  The fee was paid before I signed a lease, so if I
didn't get the apartment, I was out that money.  No landlord ever credited
that towards rent, either, which is something I read that others do.  Many
of my friends who applied for several apartments four or five years ago when
the rental market was tight were out lots of application fees without seeing
any benefit.

It was pretty common knowledge that landlords were profitting from this,
too.  Is it really likely that the cost of a background check is exactly
$50?  Probably not.  I was a student at the U of M at the time, and the area
around the university perhaps has a few more shady landlords, since they
know that students without cars don't have many options.

>From what I understand, many landlords don't conduct background checks
themselves, but use other businesses that provide this service for them.  In
that case, isn't it just as easy to provide a potential renter with a report
as a landlord?  A report could be bought by people, with an expiration date
of 30 or 45 days, and used by the prospective tenant when applying for
apartments.  The information would be the same information that the
landlords would receive anyway, so there is no "fox in the henhouse"
problem, and the expiration date would ensure that the data was timely.

>From the tenant side of things, I see lots of problems with using credit
reports and criminal records to screen applicants, but those problems are
larger than this discussion.  I do think that the idea I put forward does
address the problem of too many application fees, though, and it would be
nice to see.

===
Nathan Hunstad
CARAG
Minneapolis, MN
PGP DH/DSS public key -- http://www.angelfire.com/mn/freakpower/nhpubkey.txt
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