BOISE, Idaho — The City of Boise is working to put a cap on rental application fees.
"This is taking advantage of a difficult situation and it’s not the Boise way," said Boise city councilwoman Lisa Sanchez.
It's a concern Sanchez has been hearing from constituents over the past few months.
"The tipping point came for me in hearing from a constituent who has rented an apartment in a complex and then after a period of time of living there, a short amount of time, the rent was raised because the complex was purchased from an out-of-state developer," Sanchez said. "She tried to move into a smaller unit and then they wanted to charge her another $100 for an application when she already lived in the complex."
Sanchez is drafting an ordinance that would prohibit property managers from charging an additional application fee if the tenant already lives in the complex.
Her proposal would also cap fees at $30.
"We know here at the city the amount that we are charged for a background check is about $27," Sanchez said. "So, basically the rest of the money beyond that seems to be going into the pocket of the property managers."
Rental application fees are supposed to go toward a background and credit check, according to the Idaho Apartment Association.
"If you have to send out 10 applications at $50 apiece, before you finally get a place that is $500," said Rep. John Gannon, D-Boise.
Gannon is an attorney that deals with landlord/ tenant law.
He says teachers and volunteers with the Idaho Department of Education pay between $26 and $28 for a background check and thinks the cost of a rental application fee should be similar.
"It certainly would seem to be comparable in cost, fingerprinting and all that," Gannon said.
Sanchez' proposed ordinance would also crack down on property managers collecting application fees for units that aren't available.
"They are going to have to provide receipts to show where this money is going and they are going to have to give people their money back if they are not given a unit," Sanchez said.
And Sanchez says property managers who break the rules would be penalized.
"For folks that violate the ordinance it’s a $100 fine and beyond that it would be a misdemeanor," Sanchez said.
Sanchez says her draft will be brought in front of city leaders Wednesday for discussion.
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