Before taking a rental application fee, a rental property owner must disclose to the
applicant, in writing, the criteria on which the application will be judged.
b.
Application forms must allow the applicant to choose a method for return of the application
fee as either:
1.
Mailing it to an applicant's chosen address as stated on the application form;
2.
Destroying it; or
3.
Holding for retrieval by the tenant upon one (1) business day's notice.
c.
If the applicant was charged an application fee and the rental property owner rejects
the applicant, then the owner must, within fourteen (14) days, notify the tenant in
writing of the reasons for rejection, including any criteria that the applicant failed
to meet, and the name, address, and phone number of any tenant screening agency or
other credit reporting agency used in considering the application.
d.
The landlord must refund the application fee if a tenant is rejected for any reason
not listed in the written criteria.
e.
Nothing in this section shall prohibit a rental property owner from collecting and
holding an application fee so long as the rental property owner provides a written
receipt for the fee and the fee is not cashed, deposited, or negotiated in any way
until all prior rental applicants either have been screened and rejected for the unit,
or have been offered the unit and have declined to take it. If a prior rental applicant
is offered the unit and accepts it, the rental property owner shall return all application
fees in the manner selected by the applicant, pursuant to section (b).
f.
Violation of this subsection, 244.1910(16), may result in an administrative citation, or may contribute to the denial or
revocation of a rental license.
g.