Can landlords deny applicants with prior evictions?

Tenant Screening and Prior Evictions: Guidance for New Hampshire Landlords

When managing rental properties in New Hampshire, landlords often face the challenge of screening applicants carefully to ensure reliable and responsible tenants. A common question arises: Can landlords deny rental applicants based on prior evictions? Understanding New Hampshire’s legal framework regarding tenant screening and evictions is essential for making informed, fair, and lawful decisions.

Overview of Tenant Screening in New Hampshire

Tenant screening allows landlords to evaluate prospective tenants based on their rental history, financial stability, and background. This process typically involves:

• Checking credit reports
• Verifying employment and income
• Contacting previous landlords
• Reviewing criminal records (with limitations)
• Reviewing eviction history

Among these factors, a history of eviction is often a critical consideration for landlords.

Evictions and Their Impact on Rental Applications in New Hampshire

An eviction is a legal process where a landlord regains possession of the property due to a tenant’s breach of the lease, often for nonpayment of rent or violation of lease terms. Eviction records are public and can appear on tenant screening reports.

Can Landlords Deny Applicants Based on Prior Evictions?

In New Hampshire, landlords can deny rental applications based on prior evictions, but this decision should be made carefully and in compliance with applicable laws.

Key Points for Landlords:

• Eviction History Is a Legitimate Screening Factor: It is reasonable for landlords to view an eviction as an indicator of potential future risk, such as nonpayment or lease violations.
• No Absolute Prohibition on Denials for Prior Eviction: Unlike some states with strict laws limiting the use of eviction history, New Hampshire does not prohibit landlords from denying applicants solely because of a previous eviction.
• Consider the Nature and Recency of the Eviction: The reasons behind the eviction and how long ago it occurred are important factors. For example, an eviction for nonpayment several years ago may carry less weight if the tenant can demonstrate improved financial stability since then.
• Non-Discrimination Compliance: Decisions must comply with federal and state anti-discrimination laws. Landlords cannot deny applicants based on protected characteristics such as race, color, religion, sex, familial status, disability, national origin, or other protected classes specified under New Hampshire law.

Best Practices for Landlords When Screening Applicants with Prior Evictions

To reduce risks and ensure fairness, landlords in New Hampshire should adopt clear and consistent screening policies.

1. Develop a Written Screening Policy

• Define Criteria Clearly: Include whether prior evictions are an automatic disqualifier, or if you consider circumstances and time elapsed.
• Apply Consistently: Use the same standards for all applicants to avoid claims of discrimination.

2. Obtain Written Consent for Background and Credit Checks

• Always get the applicant’s written permission before running eviction checks or credit reports, as required under the Fair Credit Reporting Act (FCRA).

3. Review the Details of the Eviction

• Circumstances Matter: Was the eviction due to nonpayment, lease violations, damage to the property, or other issues?
• Verify Accuracy: Confirm the eviction report’s accuracy to avoid wrongful rejections.

4. Consider the Applicant’s Explanation

• Allow the applicant to explain any prior evictions.
• Consider evidence of financial improvement, references from landlords or employers, or completion of rental counseling programs.

5. Communicate Decisions Promptly and Transparently

• If you deny an application based on an eviction report, provide the applicant with a written notice.
• Include information required by the FCRA if the denial was influenced by a consumer report.

Additional Considerations under New Hampshire Law

• Security Deposits and Eviction History: While New Hampshire law regulates the amount and handling of security deposits, it does not specifically regulate the use of eviction history in screening.
• Access to Tenant Records: Landlords should be aware that New Hampshire law protects tenant privacy but allows access to eviction judgments and court records, which are public.
• Use of Criminal History: While screening for evictions and other factors, landlords must also comply with laws limiting discrimination based on criminal history.

Summary

• New Hampshire landlords can deny applicants with prior evictions.
• Decisions should be based on consistent, written policies that fairly evaluate the circumstances of each eviction.
• Landlords must ensure compliance with anti-discrimination laws and the Fair Credit Reporting Act.
• Transparency and communication with applicants enhance fairness and reduce disputes.

By adhering to these guidelines, New Hampshire landlords can responsibly manage tenant screening to protect their rental investments while maintaining fair housing practices.