It’s that time of year again: Across New Hampshire, from our bustling college towns to our job centers, renters are moving. For some, that means scavenging for used furniture on the side of the road, but for many, it also means huge costs in rental applications and security deposits.
An all too common reality is that, with a vacancy rate of 0.8% for all rentals, it’s becoming increasingly difficult to find an apartment in the Granite State. With many people competing for the few available rentals, landlords can charge exorbitant rental application fees, forcing prospective applicants to pay up to $250. per adult submitting just one application, sometimes for units that aren’t even available, and in some cases well over $500 in newly incurred “ownership fees,” “agent fees,” or lease renewal fees. In this competitive market, the likelihood of getting the first apartment or house you apply for is slim, which means most people end up submitting multiple applications – an expense that adds up far too quickly.
House Democrats understand that our state’s housing crisis is driving residents out of their communities and hurting our economy and job market. That’s why I introduced HB 283 last year to address excessive and predatory fees for rental applications, retention, and renewals. I’m pleased to report that it has now become law.
This law requires landlords to refund to prospective tenants any application or reservation fees that exceed actual and reasonable costs (background check, other listing costs, etc.) within 30 days.
In New Hampshire, landlords are not legally required to conduct a credit or background check before renting their property. This means that many landlords profit from high fees alone, while renters cannot afford the opportunity to submit multiple applications. This new law will cover the costs of property owners and landlords, while preventing them from over-profiting from the harsh reality of the competitive housing market.
Tragically, I have heard too many reports of upstate residents spending hundreds or even thousands on rental applications before signing a lease. Many, when given the opportunity to sign a lease, struggled to come up with other required deposits such as first and last month’s rent and a security deposit. This forces families to take out loans, crowdsource, apply for housing certificates, or even abandon the lease altogether. Not only does it force people to leave the communities where they live, raise families, and succeed, but it forces them to leave the communities where they have jobs… and in many cases, it even forces them to leave the state altogether. In fact, we have heard from numerous housing activists in hearings who explained that for many upstate residents, the high fees for rental applications are one of the primary reasons for ongoing homelessness.
It’s simple: the financial burden of excessive application, holding and renewal fees is unethical and not New Hampshire’s way.
While this bill is just a drop in the bucket of needed housing affordability reforms, it will undoubtedly make the process of renting a home more affordable for all Granite Staters, from college students to young families to retirees on fixed incomes. That’s something we should all celebrate.
Representative Ellen Read is the lead sponsor of HB 283, represents the cities of Newmarket and Newfields, and sits on the House Select Committee on Housing.
