The bill mandates that property managers of residential rental units with four or more dwelling units must refund application fees to applicants who do not enter into a rental agreement. The refund must occur within a reasonable timeframe, and property managers are allowed to deduct specific costs associated with services performed, provided that applicants receive written notice detailing these costs at the time of fee collection. If an applicant does not sign a rental agreement, the property manager can only retain the costs for services that were actually performed, and they cannot keep fees for services that were not rendered.

Additionally, the bill establishes that individuals who wrongfully withhold application fees may be subject to civil action, allowing applicants to seek damages equal to the amount wrongfully withheld. The burden of proof regarding services rendered falls on the property manager. The bill also includes definitions for "application fee" and "cost," clarifying the terms used within the legislation. This act will apply to application fees collected on or after its effective date.