Final answer:
A reservation fee's refundability depends on the rental agreement's terms. If the applicant is not approved, the fee may be refunded minus any incurred costs. Tenants should review terms before paying fees.
Step-by-step explanation:
Whether a reservation fee is refundable if the tenant has not been approved or declined depends on the terms and conditions of the agreement between the tenant and the landlord or leasing agency. Typically, a reservation or holding fee is paid to reserve a rental property while the landlord or leasing agency conducts background checks. If the applicant is not approved, the fee may be refunded, possibly less any actual costs incurred by the landlord or agency in processing the application. The specific refund policy should be explicitly stated in the rental application or associated paperwork. It is crucial for tenants to review and understand the terms regarding fees before making any payments.