What is a "non-refundable" fee in property management?

A "non-refundable" fee in property management refers to a charge that tenants are required to pay which is not returned to them under any circumstances. This could include charges such as application fees, which cover the cost of processing a rental application, or administrative fees associated with the management of the property. These types of fees are structured to be retained by the property manager or landlord as compensation for services rendered and are not intended to be recouped by the tenant, regardless of the outcome of their application or tenancy.

In contrast, a refundable security deposit is designed to be returned to the tenant, subject to the conditions of the lease agreement, typically upon the successful completion of the tenancy and after deductions for damage or unpaid rent. Similarly, a fee that is returned if the tenant vacates early suggests a responsibility to reimburse the tenant, which contradicts the nature of a non-refundable fee. A rent payment that is deducted from the total due does not align with the concept of non-refundability as it refers to a transaction related to the ongoing payment obligations of the tenant. Thus, the definition of a non-refundable fee is best captured by the option that specifies that it is a charge not returned to the tenant.