Grand Rapids — Ch. 174 Residential Rental Application Fees § 9.925

The Grand Rapids City Commission finds that rental application fees should be regulated to protect applicants from the unnecessary and predatory collection of fees. The purpose and intent of this Chapter is to establish rules and regulations for the collection and return of rental application fees in the city.
Rental application fee: A fee paid by the applicant (prospective tenant) to a rental property owner or his or her representative (hereinafter "rental property owner"), in order that the owner can screen the background of the applicant before signing the lease and before any contractual relationship is created. For purposes of this ordinance, applicants subject to screening are those individuals who sign or intend to sign a lease or other contractual agreement in relation to the rental unit. (1)
Before taking a rental application fee, a rental property owner must disclose to the applicant, in writing, the criteria on which the application will be judged. Additionally, the amount of the application fee that will be charged must be disclosed on any advertisement or posting related to the rental and the amount disclosed shall not be exceeded.
(2) Rental property owners shall only advertise rental units, receive applications, screen applicants, and accept application fees for rental properties when such rental properties are actually available and ready for occupancy, unless applicants consent in writing to being added to a waiting list. For purposes of this ordinance, a rental unit is no longer considered available if a different applicant has been screened by the rental property owner, has been offered the rental unit and accepted, and has placed a deposit on the rental unit. For purposes of this ordinance, a rental unit may be considered available if a tenant of a unit has declared they will not be renewing a lease. Rental property owners shall document the date and time that deposits are placed on rental units.
(3) A rental property owner shall provide an applicant with a disclosure statement at the time each application is made. Such disclosure statement shall (a) clearly state the criteria on which the application will be judged, (b) shall contain a description of the screening process utilized and the name and contact information of the person or screening agency or third party used, if any, in the screening process, (c) shall contain the amount of the fee that will be charged with the application, and (d) shall contain an itemized explanation for the disposition and use of the application fee. A rental property owner shall also provide the applicant with any paperwork or copies of electronic correspondence generated as a result of the screening process, to the extent permitted by State and Federal law. The disclosure statement shall also include the following statement: Within thirty (30) days of receipt of a denial, the applicant may, if he or she believes this ordinance has been violated, file a written complaint with the City Manager or the City Manager's Designee, addressed to City Manager, City of Grand Rapids, 300 Monroe Ave. NW, Grand Rapids, Michigan 49503, 6 th Floor, Attention: Rental Application Fee Ordinance Complaint.
(4) Application fees for rental properties shall not exceed the actual cost of the screening process, which may include national, state and/or local criminal background checks, credit reports, rental history record and/or reference checks, eviction records and/or employment verification. Application fees shall not include administrative fees, with the exception of actual reasonable costs necessarily incurred to check rental history and employment verification which are considered valid charges. Rental property owners must provide applicants an itemized explanation for the disposition and use of the application fee. A rental property owner shall also provide the applicant with any paperwork or copies of electronic correspondence generated as a result of the screening process, to the extent permitted by State and Federal law.