The bill amends the "Residential Landlord and Tenant Act" by adding a new section that prohibits landlords, lessors, sub-lessors, real estate brokers, property management companies, or their designees from requiring prospective tenants to pay a rental application fee. This new section, 34-18-58, titled "Fair limitation on rental application fees," is set to become effective on January 1, 2024.

However, the bill allows for the collection of fees for official state criminal background checks and credit reports under certain conditions. If a prospective tenant provides these documents issued within 90 days of the rental application, no fee can be charged. If the tenant does not provide these documents, a fee can be charged, but it must not exceed the actual cost of obtaining the background check or credit report, and the tenant must be provided with a copy of the documents. Landlords and their agents are also permitted to obtain independent background checks or credit reports at their own expense. The act is scheduled to take effect on January 1, 2024.