Iowa Rental Application Form
Rental Application Fee
Iowa law does not mandate the maximum amount a landlord can charge as a rental application fee. This non-refundable fee will be used to pay for the processing of the rental application form and background check, which is done by an agency or via software.
The background check will look into a potential tenant’s credit rating to determine if they are in good financial health. It means the applicant has a positive repayment history, low balances on credit cards, and manageable debts.
The rental application fee will also cover charges on inquiries about an applicant’s eviction record and criminal history, if applicable.
Iowa landlords can collect a maximum security deposit equivalent to two months’ rent. Unlike rental application fees, security deposits are refundable. Landlords have 30 days from the end of the tenancy to return the security deposit to the tenant.
However, the landlord can deduct repair expenses from the security deposit if there is damage to the property aside from the regular wear and tear. The landlord can also deduct unpaid rent from the security deposit before turning over the remaining amount to the tenant (IA Code § 562A.12).