For applicants
Why the Application Fee Is Non-Refundable
The application fee is non-refundable because it directly covers the actual, immediate out-of-pocket costs and administrative labor required to process an application.
Reviewed by Wolfgang Croskey, Broker of Record, California DRE #01708438 | Last reviewed: August 2026
1. Hard Costs from Third-Party Screening Services
The moment an application is processed, third-party screening providers and credit bureaus (e.g., AppFolio Screening) charge a direct, non-reimbursable fee to generate the applicant’s credit report, eviction history, and identity verification.
2. Staff Time & Verification Labor
Under California Civil Code § 1950.6, application screening fees are legally established to compensate property managers for:
- The actual out-of-pocket cost of obtaining consumer credit reports.
- The reasonable value of time spent by staff reviewing documents, verifying employment and income (pay stubs, tax returns, bank records), and contacting current/previous landlords.
Once a coordinator begins reviewing the file and pulls reports, those financial and labor expenses have already been incurred, regardless of whether the application is ultimately approved, conditionally approved, or denied.
3. The One Exception Under California Law
Under California law, the only circumstance where an application fee must be refunded is if the application is never processed, for example, if a prior applicant is approved and signs a lease before your application is opened or your screening report is run. If no expenses or labor were incurred on the file, the fee is returned.
Frequently Asked Questions
Why is the application fee non-refundable?
The $35 application fee covers direct, out-of-pocket costs charged by credit bureaus and screening services, as well as the administrative time spent verifying your documents, employment, and rental history. Once processing begins, these costs are immediately incurred and cannot be refunded. (If your application is received but never processed because a prior applicant was approved first, your fee will be refunded in accordance with California law).
Ready to Apply?
See the full screening criteria, or start your application. Questions? Contact our Leasing Team at info@croskeyrealestate.com or call (925) 336-3282.