Nevada has historically provided landlords with considerable flexibility regarding application fees. There is no imposed statewide cap, no mandated formula for setting these fees, and no strict upper limit directly tied to the actual cost of screening tenants.
While this flexibility still exists, a law enacted in 2025 introduced a substantial obligation. It significantly changes the procedures to be followed after fee collection, rather than impacting the maximum amount that can be charged.
We consistently manage tenant screening for property owners throughout Reno and Sparks, making it imperative to ensure accuracy on every application as part of our standard procedure. Here is a detailed overview of what the law currently mandates.
Key Takeaways
- Nevada still sets no statewide dollar cap on application, credit report, or background check fees for adult applicants.
- A 2025 law, Assembly Bill 121, now requires landlords to refund the fee under specific circumstances.
- The refund applies if you rent the unit to a different applicant and never actually performed the screening activity the fee was collected for.
- Landlords cannot charge an application, credit report, or background check fee for a minor member of the applicant's household.
- A separate 2025 bill touching related tenant remedies was vetoed and never became law, which is worth knowing to avoid confusion.
Nevada Still Has No Fee Cap, But That Is Not the Whole Story
Nevada continues to set no statewide dollar or actual-cost ceiling on what a landlord can charge an adult applicant for an application, credit report, or background check fee. That flexibility has not changed.
The primary change lies in how that money is subsequently managed in certain situations, an aspect that many Reno landlords have not yet fully adapted to or updated their practices regarding.
Other recent Nevada changes affecting rentals, including a required fee-free payment method and limits on online payment portal charges, arrived through the same 2025 legislative session. It is worth reviewing your full fee structure rather than just the application fee in isolation.
The New Refund Requirement You Actually Have to Follow
Under NRS 118A.306, effective October 1, 2025 through Assembly Bill 121, a landlord who collects an application fee, including a credit report or background check fee, must refund it to the applicant if the landlord rents the unit to a different prospective tenant and never actually performed the activity the fee was collected for.
In plain terms, if you collect a fee to run a background check and then rent the unit to someone else before running that check, you owe the applicant their money back. The statute does not specify an exact refund deadline, but the obligation itself is clear and enforceable.
This distinction holds significant importance. If you have already carried out the screening process, simply renting to a different applicant afterward does not automatically create an obligation to issue a refund. The refund obligation is explicitly linked to fees that were collected for work that was never actually performed or completed.
You Cannot Charge This Fee for a Minor
A separate, categorical rule under the same statute explicitly prohibits charging any fee for an application, credit report, or background check when the applicant is a minor member of the prospective tenant's household. This regulation is clear and applies in all situations, regardless of any other circumstances.
To ensure compliance, it is advisable to incorporate this requirement directly into your application intake process. By doing so, you can prevent accidental violations and guarantee that this rule is consistently followed during each application review.
A Related Bill That Did Not Become Law
Some coverage of Nevada's 2025 legislative session has referenced Assembly Bill 223, which touched related tenant remedy provisions. That bill was vetoed and never took effect. If you have seen references to it online, treat those as describing a proposal that did not become Nevada law, not a current requirement.
What This Means for Your Screening Process
The safest approach is tracking exactly when you collect an application fee and confirming the screening activity was actually completed before considering another applicant for the same unit. Our tenant screening process documents this timeline for every applicant specifically to avoid an accidental refund obligation.
Frequently Asked Questions
Is there a maximum amount I can charge for a rental application fee in Nevada?
No. Nevada does not set a statewide dollar cap or actual-cost ceiling on application, credit report, or background check fees for adult applicants.
When do I have to refund an application fee?
You must refund the fee if you rent the unit to a different applicant and never actually perform the screening activity, such as a background check, that the fee was collected for.
Can I charge an application fee for someone's child on the application?
No. Nevada law specifically prohibits charging an application, credit report, or background check fee for a minor member of the applicant's household.
Is there a deadline for issuing the required refund?
The statute does not specify an exact deadline, but the obligation to refund still applies once the qualifying circumstances occur, so processing it promptly is the safest approach.
Did Nevada pass any other major tenant fee changes recently?
A separate bill touching related tenant remedies, Assembly Bill 223, was vetoed during the same legislative session and never became law, so it should not be treated as a current requirement.
Let Us Handle Your Screening Compliance
Nevada's application fee rules are relatively flexible compared to many other states, offering applicants some leeway. However, the mandatory refund requirement set for 2025 constitutes a serious obligation that warrants a clearly documented process, rather than merely relying on good intentions to fulfill it.
At Martin Team at Dickson Realty, we build this exact tracking into our screening process for every Reno and Sparks property we manage. If you want your current application process reviewed, explore our owner resources, or reach out through our property management page to talk with our team.
