Refund rental application fee

2025 Regular Session

If enacted, landlords would be required to refund rental application fees under defined conditions, increasing transparency and refunds for applicants.

(LC) Draft Died in Process

#landlordandtenant

Overview

LC 526 is a draft bill titled “Refund rental application fee” in the Landlord and Tenant subject area. The bill was introduced on October 8, 2024. Its status is Draft Died in Process, with the most recent action on May 22, 2025 indicating the draft died in the process. The drafter was assigned on introduction.

Purpose and intent

The title suggests the bill aimed to address refunds of rental application fees charged to prospective tenants.

While the full text is not provided here, such a bill typically seeks to protect applicants by ensuring they can recover all or part of an application fee under specified conditions (for example, if the landlord decides not to process the application, the property is no longer available, or the landlord does not complete the screening within a defined period).

Key provisions (text not available)

The exact statutory language is not provided in the information available. If enacted, potential provisions commonly seen in similar bills might include:

Requirements for landlords/property managers to disclose the amount of the rental application fee and the refund policy up front.
Criteria for when an application fee must be refunded (e.g., if the landlord rejects the application, the property is no longer offered, or processing times exceed a specified deadline).
Caps or limitations on application fees or schedules for refunds.
Procedures for requesting a refund (timelines, documentation, and form(s) required).
Penalties or enforcement mechanisms for noncompliance, including potential fines or restitution.
Clarifications on what constitutes a “fee” versus other charges, and any exemptions (e.g., for public housing, certain income-based programs, or waivers).

Affected parties

Primary: Renters/tenants who apply to rent a property and pay an application fee.

Secondary: Landlords, property managers, and landlords’ associations who administer rental applications.

The policy could influence how rental markets handle application screening costs and administrative practices.

Procedural/timeline aspects

Introduction date: October 8, 2024.

Drafter assigned: October 8, 2024.

Legislative action: Draft Died in Process on May 22, 2025, indicating the bill did not advance and is not likely to become law in its current form.

Status note: “Draft Died in Process” means the bill did not move beyond the drafting stage or reach a committee vote, and there is no current path to enactment unless reintroduced in the future.

Potential impact and considerations

If enacted, the bill could reduce financial barriers for applicants by ensuring refunds are available under defined circumstances, potentially increasing transparency in application practices.

Landlords might face new administrative requirements and potential costs related to processing refunds and maintaining documentation.

Enforcement would determine how effectively refunds are provided and how disputes are resolved.

Next steps for readers

Monitor for any reintroduction or related proposals in the same subject area.

Review the full text if it becomes available to understand exact refund criteria, procedures, and enforcement mechanisms.

For stakeholders (tenants or landlords), consider how existing application fee practices align with common protections in similar jurisdictions and what changes would be needed if such a bill were reintroduced.

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