leasing

Restricted vs. Nonrestricted Rental Property (RSA 540)

RSA 540:1-a divides New Hampshire rentals into two groups. Nonrestricted property includes nonresidential rentals, a single-family house whose owner holds no more than three single-family houses, units in an owner-occupied building of four or fewer units, and foreclosed single-family houses held by a lender. Every other residential rental is restricted, and its landlord may evict only for a reason listed in RSA 540:2, II, such as nonpayment, substantial damage, material lease violations or other good cause.

Exam tip
Owner-occupied with four or fewer units is nonrestricted under RSA 540, but the security deposit law (540-A) uses a different five-or-fewer threshold.
Example
A landlord owning a 12-unit building wants a tenant out at lease end with no stated reason; because it is restricted property, she needs a listed ground such as good cause.

Related terms & state variants

Sources

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Last verified: 2026-10-23