Nevada Law Now Requires Landlords to Refund Rental Application Fees
Nevada renters, a major update is on the way. Assembly Bill 121 (AB 121) was signed into law on June 3, 2025, and will go into effect on October 1, 2025. This landmark legislation targets unfair rental practices by limiting hidden fees and increasing transparency.
🧾 1. Full Refund of Application Fees
Starting October 1, landlords must refund application fees if they:
- Rent the unit to a different tenant, and
- Do not conduct any vetting activities (like credit checks or application processing)
What this means for renters:
- If your application isn’t processed or you don’t get the unit, you’re entitled to your full fee back.
- Agencies can no longer collect and keep these fees without providing services.
💲 2. Caps on Online Payment Fees
AB 121 also tackles excessive online rent payment charges:
- From October 1, landlords cannot charge tenants more than the actual processing cost set by the online platform.
- These fees must be clearly listed in leases to avoid ambiguity.
Why it matters:
Tenants will no longer encounter inflated “convenience” fees that exceed what service providers charge.
📄 3. Additional Tenant Rights
AB 121 includes several other protective measures:
- Transparent lease disclosure: Leases must itemize all mandatory fees, and list rent as a single, inclusive number
- Lease preview on request: Prospective tenants can ask to review the rental agreement before signing .
- Legal recourse for renters: Tenants may sue landlords in civil court and may recover damages, attorney fees, and up to $250 per violation for deceptive practices.
✅ Tips for Renters
- Clarify fee policies upfront—ask if application and online payment fees are refundable or capped to actual costs.
- Keep documentation—such as receipts or pricing info from payment platforms.
- Know your rights—noncompliance may warrant action through the Nevada Real Estate Division or small claims court.
✅ Tips for Landlords and Property Managers
- Set up automatic refunds for unprocessed or unsuccessful applications.
- Ensure all online payment fee structures only recover pass-through costs and are clearly disclosed.
- Update leases to incorporate all fees, offer agreement previews, and protect tenants legally.
Bottom Line
With AB 121 taking effect on October 1, 2025, Nevada is taking a significant step toward fairer rental practices. Tenants gain protections against unfair fees, and landlords must update policies to comply. Whether you’re looking for a new rental or managing properties, now is the time to start preparing for these changes.
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.
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