Landlord Products / Services
More specifically, are landlords allowed to ask perspective tenants for bank statements and/or payslips as part of the referencing process?
In short, yes!
It’s not illegal by any stretch. It’s not even inappropriate, in my opinion (but then again, I am a nasty little goblin landlord, apparently).
I personally ask all my perspective tenants to prove their financial position, and I actually find it reckless when landlords and letting agents don’t.
Although, I do understand why some tenants may find it overreaching and intrusive and question the legitimacy of it altogether.
Why do landlords ask for bank statements & payslips?
This shouldn’t come as any surprise, but it’s to help landlords verify whether the prospective tenant can realistically afford the rent + bills. How else are landlords meant to do it?
Tenants falling into arrears is an incredibly common problem, and it can be crippling for landlords. One of the best ways for landlords to mitigate the risks of falling victim to rent arrears is by checking recent bank statements and payslips.
Of course, it’s not a bullet-proof solution, as everyone’s financial circumstances can change, but it is a very reliable means of assessing someone’s current financial position.
Normally, landlords ask anywhere between 3 – 6 months worth of the most recent bank statements and/or payslips.
It’s recently been reported that there’s been a sharp increase in applicants using fake payslips & bank statements to apply for rental properties.
To help safeguard against this risk, it’s always useful to cross-reference the payslips with bank statements (which is actually why it’s useful to request both) and to thoroughly screen tenants, which includes referencing employers and running credit checks.
Can tenants refuse to show statements & payslips?
While landlords are entitled to ask for statements & payslips, tenants are equally within their rights to refuse to provide any documents requested by the landlord or letting agent. No one can force tenants to disclose any documents.
However, obviously this can be detrimental to the tenant’s application, and it will most likely result in the landlord choosing someone else to rent their property to.
Landlords are not allowed to discriminate unlawfully, but they are entitled to refuse prospective tenants if they choose to withhold any documents that are asked for, especially ones that can verify whether an applicant can realistically afford the property.
I don’t believe you. How do you know it’s NOT illegal?
A few reasons.
Firstly, I haven’t seen one piece of legislation that states that it is illegal.
Secondly, there are various reputable sources online that share the view:
- Citizens Advice
If you’re asked to give your recent bank statements to show your income, make sure you cover over your account numbers for security.
If you’re self-employed, you might need to give copies of your trading accounts and an accountant’s reference.
- Shelter (a charity that advocates and supports tenants rights):
Landlords and agents usually want to check that you can pay the rent.
They may ask to see:
- an employment contract or letter from your employer
- recent payslips or bank statements
- proof of benefit entitlement
- Landlord law blog
he [the landlord] is perfectly entitled to ask a prospective tenant to provide any documents that he asks for. Asking for the most recent bank statements is common.
Still not convinced? Well, I don’t know what to tell you *shrugs shoulders*
Disclaimer: I'm just a landlord blogger; I'm 100% not qualified to give legal or financial advice. I'm a doofus. Any information I share is my unqualified opinion, and should never be construed as professional legal or financial advice. You should definitely get advice from a qualified professional for any legal or financial matters. For more information, please read my full disclaimer.
