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Valley renter frustrated by application fees during apartment hunt

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PHOENIX — Arizona's rental market is competitive and many Arizonans are facing higher rent costs forcing them to move.

When an available and affordable unit comes on the market - it's snatched up relatively quickly.

That's why when Chris found an apartment listed with Ultimate Properties he was excited.

"The price was really good and the location and [it] had an attached garage and everything," Chris said as he remembered the listing.

Chris found the listing on his phone, applied right away, and paid his fees - including an application fee.

An application fee is meant to reimburse landlords for time or money spent screening prospective tenants.

It's reimbursement for things like running credit or background checks. Application fees typically cost between $30 - $60.

After applying, Chris checked the rental listing on his desktop and noticed it read 'Application Pending'. He says that his status was not visible when he looked and applied on his phone.

"I found out that I was third in line. Then, the following days I found out that someone else had been approved," he said.

Chris was disappointed, but that turned to frustration when he says the listing was still visible online for several days after he'd been told someone approved it. He says it's not about the money he paid for the application fee.

The Ultimate Properties website says fees are non-refundable. Chris understands that but says he's frustrated about the fact other people may have also applied - and paid fees - not realizing the status of the property.

"There could have been dozens of people applying for that... it's like $50 each person to apply. And so they're potentially making quite a bit of money for something that's already been rented out."

The Let Joe Know team asked attorneys with Community Legal Services about laws regarding Arizona rental applications.

They found Arizona does not have a law specifically capping how many rental applications landlords can accept - even with viable potential tenants. Landlords can potentially keep taking applications and fees as long as they are not making misrepresentations to consumers in the process.

We checked out the Ultimate Properties website.

The desktop version does indicate if applications are pending for some of the rental listings, although the wording and display may be harder to decipher on the mobile site, which is how Chris viewed the listings initially.

Let Joe Know asked the property management several questions, including:

How long do listings stay open, even after an applicant is approved? And is there a limit to how many applications and fees they accept after a prospective tenant has accepted a rental?

A representative with Ultimate Properties responded by emailing their application requirements and general application notes.

They stated applicants are processed on a first-come, first-served basis, and the process may take 2-4 business days.

Their rules also mention applying after calling to check on a property's status.

Chris says Ultimate Properties did offer him the chance to transfer his application and subsequent fees to another property, but there wasn't one he found in his zip code.

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