In ancient times, I was a small time landlord. On a couple of occasions I asked for an application fee. I followed these rules, which I explained to the applicant:

The application fee was refunded if I turned down the applicant, provided the background check did not disclose a lie on the application.
The application fee was applied to the security deposit if I granted the rental.
The application fee was not refunded if the background check found a lie on the application, or if I granted the rental and the applicant changed their mind and declined to rent.

It costs money to do background checks. I wasn't going to be out of pocket if an applicant was dishonest with me.

[–] StarvingMartist@sh.itjust.works 8 points 1 week ago (1 children)

I think you're misunderstanding, the OP here had no intention of renting anything out, they're just taking application fees

[–] Demonmariner@lemmy.world 1 points 5 days ago

Of course, it's often a scam. But application fees can be legit. The key is how they are administered.

The fee should not be non refundable, just not refunded under certain specific circumstances.