Laws for application fees in Maryland are specific on what constitutes such a fee, when they are allowed, when they are required, and how much than they can be.
According to the statutes, an application fee is any fee other than a security deposit paid to a landlord before a lease is signed.
If a landlord rents more than four (4) units at one (1) location, the lease application must explain what the tenant's obligations and rights are if an application fee is taken. Landlords use application fees to cover the costs of processing applications, such as running credit checks.
Application Fee Refunds
A landlord is entitled to keep an application fee of $25 or less. If the fee is more than $25, the landlord must refund any amount that was not actually used to process the application. The excess amount must be returned to the applicant within 15 days after move-in or after the landlord or tenant has given written notice that the application has been rejected.
For more information on application fee laws in Maryland, please contact Baltimore landlord-tenant attorney Edward J. Maher, P.C. for a free consultation.