In 1774, Lord Mansfield said "Possession is nine points of the law". Our practice handles disputes over a very important possession -- land, be it landlord/tenant, lease disputes or homeowner-contractor litigation. This blog will explore substantive issues as well as those nine points of law to which Lord Mansfield refers.
Thursday, June 14, 2012
Can a Landlord charge an Application Fee?
We had a full house for our seminar for residential landlords last night. One of the people attending asked me if she could charge an application fee. My instinct said no, but I promised her I'd look into it.
And so I did and I stand by my initial statement. A landlord cannot collect a fee for an application or a credit check. Section 15B of Chapter 186 provides that a landlord can only collect the first and last months' rent, a security deposit and a fee to change the lock. No other fees are permissible.
You cannot disguise the fee by calling it a credit fee or anything else. When you need to rent a unit, make sure you factor in the cost to find tenants as you set the rent.
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