Nevada Law Now Requires Landlords to Refund Rental Application Fees

Nevada renters are getting new protections under Assembly Bill 121 (AB 121), which went into effect on October 1, 2024. The law specifically targets so-called “junk fees” often encountered in the rental process—particularly application fees and online payment charges.

Here’s what tenants and landlords need to know:

What Is AB 121?

Assembly Bill 121 is a tenant-focused bill passed in the Nevada Legislature to promote transparency and fairness in the rental market. The law applies to all rental properties located in Nevada and outlines new rules about how landlords may collect and retain certain fees.

Application Fee Refunds Are Now Required

Under AB 121, landlords must refund any application fees collected from prospective tenants if the applicant does not get the apartment. This applies regardless of whether the applicant withdraws their interest or is not selected by the landlord.

What This Means for Renters:

• If you apply for a rental and do not get the unit, you are entitled to receive your full application fee back.
• Landlords are not permitted to keep application fees from unsuccessful applicants.

Limits on Online Payment Fees

The law also addresses another area of concern for tenants: excessive fees charged for paying rent through online platforms.

What’s Changed:

• Landlords can no longer charge more than the actual cost of running the online rent payment platform.
• Any “convenience” or “processing” fees must reflect the true transaction cost—not serve as a revenue source.

Why This Law Matters

AB 121 aims to level the playing field for renters, particularly in competitive housing markets where application fees can pile up quickly. By requiring refunds and banning inflated payment surcharges, the law reduces financial barriers and ensures greater accountability in the rental process.

Best Practices for Renters

• Ask in advance if the application fee is refundable.
• Request a receipt or written terms before submitting payment.
• If your application is denied and the fee is not returned, you may have grounds to file a complaint with the Nevada Real Estate Division or pursue small claims action.

Final Thoughts

Nevada AB 121 represents a step forward in protecting renters from unnecessary costs and improving transparency in rental transactions. For landlords, this law is a prompt to reassess fee structures and ensure compliance with the new regulations.

Disclaimer: This blog post is provided for general informational purposes only. The Batchelor Hanna Group – REAL Broker LLC does not offer legal advice and is not affiliated with the Nevada State Legislature or any rental property management entity. For questions about your rights or responsibilities under AB 121, please consult an attorney or official state resources.