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Non-accepted Applicant Refund

We have a rental in Maryland. We recently had an applicant apply and get non-selected.  We had a more qualified candidate also apply. It is my understanding that we cannot keep more than a $25 application fee.  However, the non-selected applicant paid for the background check and eviction check directly through Do we owe him a refund for any fee incurred beyond $25?  Thank you!

Landlords use application fees to cover the costs of processing an application, such as running a credit check. A landlord is entitled to keep an application fee of $25 or less. If the fee is more than $25, the landlord must refund any amount that was NOT used to process your application. The excess amount must be returned to you within 15 days after you've moved in or after you or the landlord has given written notification that the rental won't take place.  If the landlord withholds more than $25 of an application fee, you should ask the landlord to provide a written explanation of exactly what expenses were incurred, and what the cost of each item was. If you are not satisfied with the explanation, you may want to pursue the matter further.
He paid EZ for it, you just got a copy of the results.
So, if you used the EZ Landlord Credit Check and Eviction check of $29.95 + $4.99 that would not be required to refund as it is the actual cost to process the application, correct?
The cost of labor "processing an application" or otherwise called an "Application fee" is a bogus fee and illegal, it is the cost of doing business (it's even on their tax return as participating) and management companies are paid by the owner and covered contractually so that is mute too.  Money paid by an applicant for tenant screening is not refundable, correct....but. Now if this person applied first and was qualified but you liked something else about a different applicant that came along, you have a problem or should annie up the refund. It can get sticky when you refuse an applicant if not for the proper reasons.
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