Owners and operators lawfully may require a deposit at the time the prospective resident first submits an application. The owner or operator must require the same deposit from all applicants and must set out the potential disposition of the application deposit in detailed writing before the applicant pays the deposit. If part of the payment is non-refundable, the owner or operator should inform the prospective resident in writing prior. If the owner or operator withholds part or all of the deposit in the event an applicant declines an offered apartment, the owner or operator should clearly indicate that fact in the application.

To prevent the application deposit from being treated as a security deposit, the owner or operator should return it to the prospective resident when s/he pays the security deposit.