In this video, Mendell Gosnell of Centurion Real Estate Management explains Eugene, Oregon’s new ordinance that caps rental application fees at $10. He outlines how the actual cost of thorough tenant screening—including background checks, credit reports, rental and employment verification, staff time, software, and fraud prevention—typically ranges from $30‑$50 and can exceed $100 per applicant, especially as fraud and AI‑generated fake documents become more prevalent. Gosnell argues that the $10 cap forces property managers and owners to either absorb these costs or cut corners, which can jeopardize property safety, community stability, and the quality of tenants. He emphasizes that screening is about protection, not discrimination, and calls for balanced legislation that safeguards both renters and housing providers. The video concludes with a call to action for viewers to learn more about Centurion’s screening practices via their website.
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In this video, I'd like to talk about application fees specifically for Eugene, Oregon, and really looking at the real cost of rental legislation. So recently in Eugene, Oregon, a new law now caps the rental application fee at just $10. At first glance, that might sound like great news for tenants. And we're all about helping the tenants. In fact, that's part of our mission here at Centurion. But in reality, it creates real challenges for property managers and owners who are trying to responsibly screen applicants. Hi, I'm Mendell Gosnell with Centurion Real Estate Management. And today I want to explain what this means for investors, residents, and the overall quality of the rental market and really the, the not only the rental market, but property management and just the industry of rentals in general. So first, what, what does the law say? The new ordinance effectively limits how much landlord or property manager can charge for a rental application. So a tenant wants to rent a unit, they fill out an application and they turn it in. Uh, you charge them a fee. In Eugene now, that's capped at $10. Uh, so regardless of the actual cost of the screening, whereas, um, the hard costs are generally somewhere between $30 to $50 if you're using a screening company to do the background credit checks and all of that, plus the in-house work that it takes from staff and the software that you have to support it and the time and the all of the paperwork that goes into it. And a lot of our staff touch one single application and then it might get approved by a supervisor that we might call the landlord and owner and have a discussion. And so a lot of work goes into it. And we've estimated that a thorough screening of an application with background check and rental references can cost well over $100. And again, Eugene is capping it at $10. So that includes, you know, the background checks, credit reports, rental history verification, employment validation. Again, all of which comes at a real cost that far exceeds $10. So as we see it, the problem with the cap, the actual cost of property screening an applicant today can run well over $100, as I mentioned, per person. That— and that cost has gone up, not down, and is continuing to— we're seeing it continue to go up due to rising fraud, fake documents, and identity scams. And this is only getting worse with the advent of AI. But now with this new cap, management companies are forced to absorb most of that cost or risk cutting corners on screening quality or so passing that cost on to, again, the landlord. And again, poor screening doesn't just affect owners, it can affect other tenants, neighbors, and the safety and stability of the entire property. So it is something that we do think is detrimental to the industry. Why screening matters more than ever. Screening isn't about discrimination. It's about protection. It helps ensure tenants are financially qualified. They have a solid rental history and will take care of the property. As fraud grows more sophisticated, from fake IDs to AI-generated pay stubs, screening costs more, but it's never been more essential. That's why legislation like this, though well-intended, can unintentionally make it harder for responsible landlords and less safe for tenants who play by the rules. Just recapping Centurion's perspective, our opinion at Centurion, we remain committed to doing thorough professional tenant screening because we believe that protecting your property and placing quality residents is worth it. We'll continue to advocate for balanced, fair legislation that protects both renters and housing providers. Without sacrificing safety, quality, or professionalism. But we do have a call to action. We, we believe the best laws protect everyone— owners, residents, and the communities we serve. But when laws make it harder to screen responsibly, the whole housing ecosystem feels it. Appreciate you watching. Wanted to share this concern with you. If you want to learn more about how we manage property, and advocate for smarter solutions, check out our website at c-rem.com or give us a call today. Thanks for watching.
