Can Landlords Ask for Bank Statements for a Rental Application?

Is it normal for a landlord or property manager to request your bank statement in your rental application?

The short answer is yes. Landlords and property managers will require proof of income to be able to rent the apartment to financially secure individuals. Of course, you likely won’t have to provide your actual account and routing numbers on the application itself but rather bank or tax statements to prove your earnings. Below are some examples of information you may be asked to provide to confirm your financial accountability as a renter:

• Account balance
• Bank statement
• Contact information
• Co-signer information
• Driver’s license number
• Employment information
• Pay stubs
• Tax returns
• Residential history
• Social Security number

While some property owners and managers will ask for all the documents listed, others will only ask for some. Your best bet is to have everything on hand so you can fill out your application promptly and beat out other potential applicants.

Why do landlords want to see bank statements?

Landlords only want to rent to reliable, financially stable renters. By asking for your bank details, the property owner can confirm you hold an account and that your monthly income, minus your expenses, is enough to cover the rent. Another reason property owners want to know your account number is for security if you fail to pay the rent. If the property owner has to sue you for breaking a lease, they can get a court order to permit withdrawing money directly from your bank account to pay a judgment debt.

Additionally, property owners are constantly looking for new ways to simplify the rental process for their renters. Consequently, some might adopt the use of advanced online property management systems. These systems require you to provide your banking information to facilitate secure online rent payment services.

If you choose to pay your deposit or rent via check, the check itself provides bank details the property owner needs. A routing number identifies your banking institution, and the other set of numbers on the check is associated with your bank account number. Using online payment portals eliminates instances where checks get lost or snatched from a drop box, potentially exposing your private information.

Should I show my bank account number to my property owner?

You don’t have to produce your bank details for apartment rental applications. However, as long as they’re not breaking any discrimination laws, property owners reserve the right to lease the apartment to whomever they choose, which could result in another renter occupying the apartment should you fail to meet the documentation requirements.

Suppose you can afford to rent an apartment but don’t feel comfortable showing your bank details. In that case, you can always provide the following information to verify you’re capable of renting the apartment:

• Form W-2: As the IRS website indicates, the law requires employers to file a Form W-2 for every employee. This document states your tips, wages, and other forms of compensation, and it’s another way to verify your income.
• Form 1099-MISC: This tax form summarizes all royalties and income payments. You should be mindful of this document if you’re self-employed.
• Pay stubs: If you’re employed, pay stubs offer one of the simplest ways to prove your income without using bank details for your apartment rental application. Unfortunately, some property owners may be hesitant to accept them as proof of employment because of instances of forgery.

If you’re living off your savings while you’re in between jobs or have a steady income of less than three times the rent, you’ll face challenges finding an apartment without disclosing your bank details. One option to explore if your finances don’t meet the requirements would be to find a co-signer for your lease agreement. This is a person who’s willing to accept paying the rent if you default on your rental agreement.

A bank’s duty of confidentiality

If your property owner comes across your bank account number, don’t fret. Landlords can’t do much with it without obtaining your consent. The United States has some of the most stringent banking privacy laws. Generally, a bank can’t reveal any private information, such as your bank balance, to a third party unless a court requires it.

Why would a rental application be rejected?

Your rental applications could get denied for many reasons, including:

• You have poor credit: Rental housing providers use your credit score as one of the key determinants of their renter screening process to decide if you’re financially responsible. The higher your credit score, the better your chance of getting approved for an apartment.
• You have inadequate income: If a property owner examines a request for a rental and realizes the applicant doesn’t make enough money to pay the rent, the individual can reject the bid.
• You have a history of evictions: A previous history of evictions doesn’t look good on your apartment rental application. However, if you’re in such a situation, consider attaching a letter that explains the circumstances.
• The property has received many applicants: You must be ready with your apartment rental application if you like a place, as desirable apartments can get snatched up quickly. Being ready can save you precious time and put you ahead of other potential applicants.
• You have unsatisfactory references: Not having any references or having poor references can get your apartment rental application rejected. Property owners use connections to verify the validity of the information you provide; for example, they might contact a previous property owner and inquire about your rental history.

What are the laws about rental applications?

Landlords should adhere to federal fair housing laws. This adherence implies that the procedures for accepting an applicant should be the same for all applicants. They can’t reject applicants based on their:

• Color
• Race
• Disability
• Religion
• Gender
• Sexual orientation
• National origin
• Familial status

These are federal laws, and they’re taken very seriously. If you feel that you’re being discriminated against, you can file a complaint with the United States Department of Housing and Urban Development.

What are secure ways to share banking information with a landlord or property manager?

If you’re required to provide your banking information, you’ll want to make sure you do so in a secure manner. When asked to upload any documents online, be sure that the system has a secure file upload in place. If you can’t confirm this, you can create a password-encrypted zip folder to safeguard your documents. Call the landlord or property manager to ensure delivery and share the password for the file.

Steps to take before applying for an apartment

Before you submit your rental application, these are some steps you should take to prepare your financial information:

1. Check your credit score Know your credit score and work to resolve any financial issues before submitting your application. A better score boosts your chances of getting the apartment you want.
2. Budget for deposits and fees Make sure you have extra funds set aside for any application fees or security deposits. Typically, an apartment application fee can run anywhere between $50 and $100 and is often nonrefundable.
3. Have your documents prepared Take the time to save and print any financial documents, making sure to keep them in a safe and secure location. This allows you to have them ready when an apartment becomes available.
4. Avoid rental scams If a landlord or property management company is asking for your bank account information before you look at the apartment or they receive an application from you, beware of potential scams. Never give out sensitive information unless you’ve vetted the business as being legitimate.

Frequently asked questions

These are some answers to the most commonly asked questions about providing a bank statement for a rental application.

If a landlord is requesting your bank account information the first thing you’ll want to do is verify the listing and make sure you are not in danger of any rental scam. Never send anyone your banking details electronically. Ask questions about what the information will be used for and ask if you can provide alternative proof of income such as paystubs or a W-2.

If your bank account has been compromised you should reach out to your banking institution immediately. They will be able to put a lock on your account and investigate the matter further.

Is it safe to pay my security deposit and rent through an online rent portal with my banking information?

Generally, yes. Some property management companies will offer the convenience of online rent payments through their secure rent portal. There will likely be internet security measures in place to protect your information from potential hackers. If you do not feel comfortable paying your security deposit and rent this way simply talk though an alternative with your landlord such as personally delivering your check to the renal office. While less convenient, this added safety measure can give you peace of mind.

Landlords and property managers will usually require at least 3 months of bank statements.

If you cannot provide proof of income you may look into alternative ways to rent the apartment. This includes finding a co-signer or guarantor who can assume financial responsibility for the duration of your lease.

Generally yes, it is safe to share your bank statements with your landlord. However you should always be aware of rental scams and those posing as landlords or property managers to get your banking information. Always verify that a listing is legitimate and never send money without viewing the apartment in person or by video. Make sure to black out your account and routing information when sending your bank statement to ensure safety.

You can black out sensitive information on your bank statement, including your bank account number and routing number. The property manager should only need to verify that you have an income, so they don’t need your account number on the application. When your application gets approved, you may want to share your bank account information so you can make payments online.

Bank or credit references on a rental application are those that provide a property manager with confirmation that you have good habits when it comes to paying your bills. These references may include your bank statements but can also include talking to previous landlords. Providing references with your rental application shows that property owners would be willing to rent to you and you can pay your bills on time. The more positive references you have, the more likely you are to get approved for an apartment.

Final thoughts

An apartment rental application asking for a bank statement or account number can be a bit tricky to navigate. However, once you understand what to expect and how the process works, you can move forward with your application with ease. Knowing why property managers might ask for this information and what exactly you have to provide gives you peace of mind when you start applying for an apartment rental. Having the documentation you need ready to go can help put you at the front of the line when the time comes for a property manager to choose the best renter.

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Zumper's team of rental experts provides you with the latest rental tips, trends, and local laws to help you find great apartments and homes across the country.