In most of the United States, the tenant pays for a rental background check. No federal law assigns the cost to either side, so the answer depends on the state where the property sits. Most states let landlords charge applicants a screening fee, typically $25 to $75. About a dozen states cap that amount, a few require landlords to waive it in specific situations, and Vermont bars application fees entirely.
Why the Tenant Usually Pays
The default across most states is simple. Landlords may charge applicants a fee to cover the cost of pulling a credit report and a criminal-history search, and the applicant either pays or moves on to the next listing. Absorbing those costs for every applicant on a single vacancy adds up quickly, so landlords build the expense into the application process.
Some landlords in competitive markets choose to cover the cost themselves to attract more applicants. That’s a business decision, not a legal requirement. Where state law is silent, the landlord sets the fee.
States That Cap or Restrict Screening Fees
Roughly a dozen states and the District of Columbia limit what landlords can charge for screening, and the caps vary widely. A few states hold the line at $20. Others allow up to $50. California ties its cap to the Consumer Price Index and adjusts it each year; for 2026, the maximum there is $65.86. Several states take a different approach and require that the fee not exceed the landlord’s actual out-of-pocket cost for the report, with no fixed dollar ceiling.
Two states stand out. Vermont prohibits landlords from charging any application fee, though landlords there can still pass along the direct cost of a credit check. New York caps background and credit check fees at twenty dollars or the actual cost, whichever is less, and requires landlords to waive the fee entirely if the applicant provides a recent report of their own.
Some states also require landlords to disclose certain information before collecting a fee, such as the screening criteria they’ll use and which consumer reporting agency will run the report. Where caps apply, the point is to keep screening fees from becoming a profit center. If you’re unsure about your state’s rule, check with your state attorney general’s office or a tenant-rights agency before paying.
Portable Screening Reports Can Save You the Fee
Six states have enacted some form of portable tenant screening report legislation. The idea is that you pay once for a background and credit check, then share that report with multiple landlords during your housing search instead of paying a new fee at every property.
The details differ by state. Colorado requires landlords to accept a reusable report pulled within the last 30 days. New York requires landlords to waive their screening fee if a tenant supplies a recent report. Other states make acceptance optional or set up the framework without requiring landlords to participate. If you’re applying to several units in a short stretch, a portable report through a third-party screening platform can cut your out-of-pocket costs significantly.
When You’re Owed a Refund
If a landlord collects a screening fee but never actually runs the report, you’re entitled to your money back. The most common scenario is that the landlord fills the unit before getting to your application. The fee was collected for a specific service that was never performed, so the landlord can’t keep it. Several states say this explicitly, and even where the statute is silent, holding payment for a service that was never delivered invites a consumer-protection complaint.
Landlords also can’t collect a fee when they know the unit isn’t available. Taking application money on a unit that’s already rented or off the market is exactly what state consumer-protection laws target. If you suspect the unit was never genuinely available, request a refund in writing and keep a copy. Documentation is what separates a complaint that goes somewhere from one that doesn’t.
Your Rights After You Pay
Paying for the check doesn’t end your protections. The federal Fair Credit Reporting Act covers every tenant who goes through a background check, no matter which state you live in.
If You’re Denied
When a landlord denies your application based in whole or in part on information in a consumer report, federal law requires them to send you an adverse action notice.1Office of the Law Revision Counsel. 15 U.S. Code 1681m – Requirements on Users of Consumer Reports That notice must identify the screening company that produced the report, state that the screening company did not make the housing decision, and tell you that you can get a free copy of the report within 60 days and dispute anything inaccurate.2Consumer Financial Protection Bureau. What Should I Do if My Rental Application Is Denied Because of a Tenant Screening Report? If a credit score factored in, the notice must include the score, the range of possible scores, and the key factors that hurt yours.
A landlord who skips this step faces statutory damages of $100 to $1,000 per willful violation, plus potential punitive damages and your attorney’s fees.3Office of the Law Revision Counsel. 15 U.S. Code 1681n – Civil Liability for Willful Noncompliance
If the Report Has Errors
Tenant screening reports are often inaccurate. Mixed files, outdated criminal records, and debts that belong to someone else turn up more often than most landlords realize. You can dispute an error directly with the screening company that produced the report by describing the problem in writing and including supporting documents.4Federal Trade Commission. Disputing Errors on Your Tenant Background Check Report The company then has 30 days to investigate, though the deadline can stretch to 45 days. If the information is inaccurate or can’t be verified, it must be corrected or deleted. Once that happens, get a copy of the corrected report and send it to the landlord yourself.
A Possible Federal Rule on Rental Fees
The FTC published an advance notice of proposed rulemaking in March 2026 on unfair and deceptive rental housing fee practices, including screening fees.5Federal Register. Rule on Unfair or Deceptive Rental Housing Fee Practices The Commission is weighing whether landlords should have to include all mandatory fees, including application and screening charges, in the total advertised rent, and whether landlords should have to itemize and disclose fees before collecting any application payment.
No final rule exists yet, and the proposal could change substantially before anything takes effect. If a federal rule does land, it would set a nationwide floor regardless of what your state does with its own fee caps.