Are there limits on application or admin fees?

Application and Administrative Fees for Tenants in New Hampshire: What You Need to Know

When renting a home or apartment in New Hampshire, tenants often encounter various fees related to the rental process. Two common types are application fees and administrative fees. Understanding whether these fees are regulated and what limits exist can help tenants make informed decisions and avoid unexpected costs.

Are Application or Administrative Fees Allowed in New Hampshire?

In New Hampshire, landlords are permitted to charge application fees and certain administrative fees connected with renting residential property. Such fees are generally intended to cover the landlord’s costs related to processing rental applications, such as screening tenants, running credit checks, and verifying rental history.

However, there are important considerations that both tenants and landlords should be aware of regarding the amounts charged and transparency.

Limits on Application Fees

• No Statutory Cap: New Hampshire law currently does not impose a specific maximum limit or statutory cap on the amount landlords may charge as an application fee. This means landlords may set application fees at what they consider to be a reasonable amount to cover screening expenses.
• Reasonableness Standard: While there is no legislated maximum, courts or consumer protection agencies may consider fees excessive or unconscionable if they are far beyond typical screening costs. Tenants have the right to question and negotiate unusually high application fees.
• Use of Fees: Application fees should be used only to cover legitimate administrative costs such as tenant screening, background checks, and other verification services. Charging application fees as a non-refundable deposit or confusing them with security deposits is not appropriate.

Administrative Fees and Their Regulation

• General Administrative Fees: Similar to application fees, New Hampshire law does not explicitly regulate or limit administrative fees charged by landlords in relation to the rental process.
• Transparency and Disclosure: Landlords should clearly disclose administrative fees upfront, ideally in the rental listing, rental application, or lease agreement. Tenants must be informed about what the fee covers, whether it is refundable or non-refundable, and the exact amount.
• Additional Fees: Any administrative fees beyond the application process—such as lease preparation fees or move-in processing fees—should also be reasonable and justifiable. Excessive or hidden fees may be subject to dispute.

What Tenants Can Do

• Request a Written Explanation: Tenants can ask landlords for a detailed explanation of what the application or administrative fees cover before paying.
• Shop Around: Application fees are often non-refundable. It is prudent to compare fees from multiple landlords or property managers before applying.
• Know Your Rights: Although New Hampshire does not impose fees limits, tenants have consumer rights protections under general contract and business practices laws. Fees deemed deceptive or unfair may be challenged.
• Seek Assistance: If tenants believe fees are excessive or improperly charged, they can contact local tenant advocacy organizations or the New Hampshire Attorney General’s Consumer Protection Bureau for guidance.

Summary

• New Hampshire allows landlords to charge application and administrative fees related to renting residential properties.
• There is no explicit statutory limit on the amount of such fees in New Hampshire.
• Fees should reflect actual screening or administrative costs and be disclosed clearly to tenants.
• Tenants should carefully review fees before paying and understand that application fees are often non-refundable.
• If uncertain or concerned about fees, tenants have avenues for assistance and may negotiate with landlords.

By staying informed about application and administrative fees in New Hampshire, tenants can better navigate the rental process and avoid unexpected financial burdens. Tenants are encouraged to maintain open communication with landlords and request clear documentation regarding any fees charged during the application and leasing process.