A couple moving to Halifax from Ontario said they were asked to pay an application fee for a Gottingen Street apartment — an illegal practice in Nova Scotia.

Christopher Tamasi​ said he and his girlfriend saw an apartment they liked online and contacted the landlord right away.

Tamasi was told if they wanted to be considered as tenants for the 2438 Gottingen St. building, which is owned by a company called the Arab Brothers, they would have to provide a deposit of half a month's rent, roughly $600, along with their application.

"I have never been asked to provide a deposit before signing a lease, let alone prior to an application," Tamasi said, adding he was told if he didn't provide the deposit, the rental company would not move forward with the application.

"The renting market in Halifax is one that seems to be completely unregulated and unchecked, therefore, landlords and rental companies can almost literally do whatever they please."

Application fees illegal

Tamasi said he was assured the entire amount would be refunded if their application was denied, but Nova Scotia's Residential Tenancies Act states that landlords can't ask tenants for money when applying to rent a property.

After signing the lease, there is usually a security deposit — no more than half a month's rent. That money is returned to the tenant at the end of the lease, if there are no damages or outstanding rent payments.

Carley Sampson, a spokesperson for Service Nova Scotia, declined to be interviewed but said in an email that landlords are not allowed to accept money with an application.

"If an individual finds themselves in this situation, it is best if they contact Service Nova Scotia to ... begin the process to seek return of the application fee," Sampson said.

Renter Christopher Tamasi says he's concerned the Halifax renting market goes unchecked. (Craig Paisley/CBC)

On the Registry of Joint Stock Companies, two businesses — Arab Brothers Capital Inc. and Arab Bros. — are listed under the name of Joseph C. Arab.

The building at 2438 Gottingen St. is listed on Nova Scotia's Property Online database as being owned by 3273986 Nova Scotia Ltd. Arab is listed as its president.

CBC News contacted Arab on Friday, who said he had not personally been in touch with the potential tenants in question.

When asked whether the Arab Bros. company normally charges for application fees, he said: "To apply? Not that I know of. You could have the wrong person, too, there are other people with that name that have properties also."

When asked if he meant there are two Arab Bros. rental companies in Halifax, Arab said, "There might be." He had no further comment.

Legal aid often hears about application fees

"It's very clearly illegal," said Megan Deveaux, community legal worker at Dalhousie Legal Aid Service.

She said the legal aid office frequently receives calls about application fees.

"If you have [a landlord] who is of little moral character, this is a very easy way to scam money out of people."

Deveaux said while tenants can file a claim to get that money back, there is no enforcement or followup to make sure the landlord doesn't do it again.

While it's possible a landlord could be fined up to $1,000, Deveaux said she's never seen it happen — though she's tried.

'It's not a deterrent'

"When you know that the worst that can happen is you have to give the money back and there's no other consequence for it, it's not much of a deterrent. It's not a deterrent," Deveaux said.

"The only thing that really could be done is to have legislative change, and I don't see any pressure on the government to do that."

Tamasi said they sent their application without the application fee nearly two weeks ago. They haven't heard back from the company since.

"I don't believe we will be moving forward with them," Tamasi said.

"[There's been] too many red flags."