Are landlords allowed to run background checks on tenants?

Tenant Screening and Background Checks for Landlords in New Hampshire

As a landlord in New Hampshire, conducting thorough tenant screening is essential to making informed leasing decisions. One common method of screening prospective tenants is running background checks. Understanding the legal framework surrounding these checks will help you stay compliant with state and federal laws while protecting yourself and your property.

Are Landlords Allowed to Run Background Checks in New Hampshire?

Yes, landlords in New Hampshire are permitted to run background checks on tenant applicants. Background checks typically include criminal history, credit reports, eviction records, and sometimes employment verification or rental history. Utilizing these checks allows landlords to assess the risk of renting to a particular individual.

Legal Considerations for Background Checks

While background checks are allowed, landlords must observe both federal and New Hampshire-specific laws, ensuring tenant screening practices are lawful and nondiscriminatory.

Compliance with Federal Laws

• Fair Credit Reporting Act (FCRA): If you use a consumer reporting agency (such as a credit reporting company) to obtain information on tenants, you must comply with the FCRA. This includes:

- Obtaining written consent from the applicant before ordering the report. - Providing the applicant with a copy of the report if you deny their application based on the results. - Informing the applicant about their rights and the source of the report.

• Fair Housing Act (FHA): Screening criteria must not discriminate against applicants on the basis of race, color, religion, sex, national origin, familial status, or disability.

New Hampshire-Specific Laws

• Use of Criminal Records: While New Hampshire does not explicitly prohibit landlords from considering criminal history in tenant screening, recent legal trends encourage considering the nature and recency of any offenses. Screening policies that exclude applicants solely based on old or minor convictions may be challenged as discriminatory.
• Tenant Privacy Protections: New Hampshire law requires landlords to handle tenant information confidentially. Obtain written permission before running background checks or pulling credit reports, and securely maintain sensitive information.
• Restrictions on Application Fees: When charging application fees to cover background or credit checks, landlords must ensure these fees are reasonable and reflect actual screening costs. Excessive fees may lead to disputes.

Best Practices for Conducting Background Checks in New Hampshire

To ensure effective and lawful tenant screening, landlords in New Hampshire should follow these best practices:

1. Get Written Consent

- Always obtain a signed authorization form from the applicant before conducting any background or credit check. - The form should clearly state what types of reports will be pulled and the purpose.

1. Use Reputable Screening Services

- Utilize consumer reporting agencies that comply with FCRA standards. - Verify the accuracy and completeness of the reports before making decisions.

1. Implement Consistent Screening Criteria

- Establish rental standards applied uniformly to all applicants to minimize risks of discrimination claims. - Clearly define acceptable credit scores, criminal histories, and eviction backgrounds.

1. Assess Criminal Records Carefully

- Evaluate the relevance of any criminal history to tenancy safety and property risks. - Consider the timeframe and type of offense when making rental decisions.

1. Provide Adverse Action Notices

- If you deny a rental application based on information in a background or credit report, you must: - Notify the applicant in writing. - Provide a copy of the report. - Inform the applicant of their right to dispute inaccuracies with the reporting agency.

1. Protect Applicant Data

- Secure all documents and electronic records containing applicant information to prevent unauthorized access or identity theft.

1. Communicate Clearly with Applicants

- Explain your screening process upfront. - Respond to any applicant questions or disputes professionally and promptly.

Possible Screening Components Landlords Use

• Credit Reports: Reveal financial responsibility and history of paying debts.
• Criminal Background Checks: Show any convictions or criminal activity.
• Eviction History: Identifies prior evictions or landlord disputes.
• Employment and Income Verification: Confirms ability to pay rent.
• References from Previous Landlords: Provides insights into tenant behavior.

Summary

In New Hampshire, landlords are allowed to conduct background checks as part of tenant screening, provided they comply with federal and state laws. Securing applicant consent, using accurate and lawful screening tools, applying standards consistently, and respecting tenant privacy are critical to a successful and legal screening process.

By adhering to these guidelines, landlords can minimize risk and select tenants who will maintain and respect their rental properties while also building positive landlord-tenant relationships.