Opinion: Celebrating the end of predatory rental applications

A “For Rent” sign displayed outside apartment building in Skokie, Ill., Sunday, April 14. Nam Y. Huh / AP
Published: 08-16-2024 6:00 AM |
Rep. Ellen Read is the prime sponsor of HB 283, represents the towns of Newmarket and Newfields, and sits on the House Special Committee on Housing.
It’s that time of year again, across New Hampshire from our vibrant college towns to our workforce hubs, renters are moving. For some, that means prime time for used furniture scouting on the curb, but for many, that also means massive expenses in rental applications and deposit payments.
An all-too-common reality is that with a vacancy rate of 0.8% for all rentals, it is increasingly difficult to find a place to live in the Granite State. With many people competing for few available rentals, landlords can charge exorbitant rental application fees, forcing potential applicants to pay up to $250 per adult to submit just one application, sometimes for units that are not even available, and in some cases well over $500 in newly created “holding fees,” “brokerage fees,” or lease renewal fees.
In this competitive market, the likelihood of getting the first apartment or home you apply to rent is slim, which means most people end up submitting several applications, an expense that adds up way too quickly.
Our state’s housing crisis is forcing Granite Staters out of their communities and hurting our economy and workforce. That’s why last year I filed HB 283, a bill to crack down on excessive and predatory rental application, holding, and renewal fees. I am thrilled to report that it has now become law.
This law requires landlords to return any application or holding fee in excess of the actual and reasonable costs (background checks, other listing costs, etc.) to the prospective tenant within 30 days.
In New Hampshire, there is no legal requirement for landlords to run a credit or background check before renting their property, which means that many landlords are profiting purely off high fees while renters are priced out of their ability to submit multiple applications. With this new law, the costs of property owners and landlords are met, and at the same time they cannot excessively profit off the grim realities of the competitive housing market.
Tragically, I have heard too many accounts of Granite Staters who have spent hundreds and even thousands on rental applications before they signed a lease. For many, once they did have the opportunity to sign a lease, they struggled to put down other required deposits like the first and last month’s rent and a security deposit. This forces families to take out loans, crowdsource, seek housing vouchers, or even forfeit the lease altogether.
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It not only forces people out of the communities where they live and raise families and thrive, but it forces them out of the communities where they have work, and in many cases forces them out of the state altogether. In fact, in hearings, we heard from numerous housing advocates who explained that for many Granite Staters, high rental application fees are one of the primary drivers of extended homelessness.
It’s simple, the financial burden of predatory application, holding, and renewal fees is unethical and not the New Hampshire way.
While this law 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. For that, we should all be celebrating.