Can letting agents request bank statements?
You need to provide so many documents that it’s sometimes difficult to keep track of which you’ve already submitted. Landlords will ask for a credit check, bank account number, social security, claim form, application fee, payslips, W-2s, security deposits, and the list goes on. The landlord can legally ask for appropriate information that proves your ability to pay the rent. In general, he figures out your financial health by comparing your monthly income to your monthly payments.
The debt data that the landlord can collect with your consent appears on your credit report. Some landlords verify your income by requesting copies of your bank statements. The landlord is within his right to request such information. Landlords can request information such as payslips or bank statements to prove that you can afford the rent.
Due to the cost of this investment, landlords only want to rent out their property to tenants that they are sure they can afford it and who take care of their investments. Tenants typically need bank statements if they can’t prove they have a reliable and verifiable source of income. As long as bank statements show that they are living within their means, you can be flexible, so many rental agents may not be able to do so. David Lawrenson, founder of LettingFocus, also writes for real estate portals, speaks at real estate events and is regularly quoted by the media.
When you
ask for your bank details, the landlord will verify that you actually have an account and that your monthly income minus your expenses is sufficient to cover the rent. It’s a tough decision for a tenant — on the one hand, you may feel uncomfortable providing sensitive information. On the other hand, refusing to provide your bank details may jeopardize your rental application. If the landlord has to sue you for breach of the lease, they can file for a court order that allows them to “garnish your bank account, which means they can withdraw money directly from your account to pay a judgment debt. A key factor for any guarantor, along with all the other checks you should do, is that they should be able to prove through their own bank statements that they can easily afford the rent and cover all their own financial expenses.
Why do tenants need bank statements? Tenants typically need bank statements if they can’t prove they have a reliable and verifiable source of income. Most landlords and reference agencies require tenants to provide bank statements as income and rent payments. If you ask for your bank details, the landlord can confirm that you actually have an account and that your monthly income minus your expenses is sufficient to cover the rent. Sometimes you just don’t feel comfortable seeing a particular thing or two on your bank statements by your landlord.
