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 bill specifies that if an application fee is charged, the property manager must provide written notice detailing the costs associated with specific services included in the fee. If the applicant does not sign a rental agreement, the property manager can only retain the costs for services actually performed, and must refund the remaining balance. Additionally, the bill clarifies that property managers cannot retain fees for services that were not performed, even if those costs were mentioned in the initial notice.

Furthermore, 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," ensuring clarity in the terms used. It is applicable to any application fees collected by property managers from applicants on or after the effective date of the act.