Conditional Apartment Approval With a Risk Fee

Conditional approval still has conditions

A conditional approval isn’t a signed lease, and it isn’t a promise that a unit is held for you. Read the written notice to see what’s still left to do, the deadline and who can confirm you’ve done it.

A risk fee may be one condition. That’s an extra fee a community charges to approve an application it sees as riskier. From what we see, risk fees run anywhere from $200 or $300 up to one month’s rent. Plan around that range until you have the written amount. Don’t guess whether a higher deposit or a stricter income rule comes with it. Ask the leasing office to list each charge and each document they need, one by one.

Make a payment schedule

• List each charge by the name they give it and what it’s for.
• Keep application and property fees, deposits, rent and any guarantor company payments apart.
• Write down the amount and due date for each payment.
• Ask about cancellation and refund terms before you send any money.
• Call the office yourself to confirm how to pay.

Look at the whole lease

A smaller move in payment may mean you pay installments later. A bigger deposit isn’t the same as a fee you don’t get back. Compare the written agreements, not just what’s due today.

Here’s a made up example. A $1,000 deposit plus a $500 fee means $1,500 upfront before other charges. A $1,500 deposit takes the same cash, but the refund terms are different. You can’t judge either one by the upfront total alone.

Get your questions answered before you move ahead

Ask what happens if the unit is no longer available, screening needs more information or a guarantor company says no. Keep receipts and written answers. Did a screening or credit report lead to worse terms? The landlord has to tell you, and that notice (an adverse action notice) can be written, spoken or electronic. Then ask for your copy of that report.

Sources and further help

• FTC: what a landlord’s adverse action notice must include