Landlord asking for bank info
Hi Chris,
The reason for asking banking info is usually to check your credit score. I do this for all prospective tenants to see what their credit history looks like.
As for the deposit, the law in Quebec is that landlords can ask for a deposit covering the rent for the 1st month. Any additional security deposit should not be asked by the landlord. Asking for an ID makes sense, I've had a case of a tenant who signed under a fake name once.
Many standard leases have blanks to fill in with bank account info (including a blank form I got from BP).
When I was a tenant, some of my landlords didn’t require us to fill out these sections of the form (they didn’t need to know our account balance and account numbers!). They were able to run a credit check without this information so everything worked out.
That being said, I do understand the scenario where a landlord has an awful tenant and needs to evict or take them to court. Having as much knowledge about the person on the other side of the courtroom would be helpful!
Originally posted by @Chris Walters:
Hi BP!I need help as to know whether or not it is normal for a landlord to ask a new tenant for their bank info (bank name, branch address, account number). The landlord is willing to accept post dated checks, therefore, i am not sure why the bank info would be required.
The landlord also asked for a deposit and pieces of ID.
Location: province of quebec
Thanks,
Chris
Must be a Canadian thing. I have never asked any tenant for their bank info. What bank they bank with is none of my business. I have, on the contrary, given my bank account info to them, so they can give it to their employer to direct deposit check into my account. I don't need anyone's bank account number and the responsibility that comes with it.
Here in Los Estados Unidos we have Social Security Number that is used to pull credit. There are websites which allow you to get report automatically when they fill in the application. The tenants pay with their credit/debit card or e-check, and we don't even get the financial info. We just get the results.
If I were living in your country, I would be very wary of such policy/procedure. Sounds like something is off..
Originally posted by @Chinmay J.:Must be a Canadian thing. I have never asked any tenant for their bank info. What bank they bank with is none of my business. I have, on the contrary, given my bank account info to them, so they can give it to their employer to direct deposit check into my account. I don't need anyone's bank account number and the responsibility that comes with it.Here in Los Estados Unidos we have Social Security Number that is used to pull credit. There are websites which allow you to get report automatically when they fill in the application. The tenants pay with their credit/debit card or e-check, and we don't even get the financial info. We just get the results.
If I were living in your country, I would be very wary of such policy/procedure. Sounds like something is off..
Chinmay:
It's not a Canadian thing, it's a business thing. Many landlords in your country and mine do ask for a tenant to provide banking information (bank and branch) as it provides another datapoint for validating the information provided in a credit history report. Simply asking for your bank and branch does not provide the landlord with the ability to inquire about your accounts or their content - under Canadian privacy law that would require explicit written consent.
That said, in instances where applicants are self-employed or graduate students living on research grants, we often request bank statements as a means to verify ability to pay.
Here in Canada, a landlord may request a social insurance number (SIN) - our equivalent to a Social Security Number in the U.S.A. - but they cannot require it and the applicant is under no obligation to furnish it (again, due to privacy law).
We request banking information on our applications. Not balances but bank name, type of account(s) and account number.
I would say lately it would be not appropriate to ask in Canada. My tenants pays me Interac E Transfer and super easy to track in your email inbox. The other method is scheduled direct withdrawals from bank account. Checks are very outdated for the most part in urban areas.
In the US however I have no problem tenants sending me a copy of there check with all the details where I can set up transfers online etc...
Originally posted by @Roy N.:Originally posted by @Chinmay J.:Must be a Canadian thing. I have never asked any tenant for their bank info. What bank they bank with is none of my business. I have, on the contrary, given my bank account info to them, so they can give it to their employer to direct deposit check into my account. I don't need anyone's bank account number and the responsibility that comes with it.Here in Los Estados Unidos we have Social Security Number that is used to pull credit. There are websites which allow you to get report automatically when they fill in the application. The tenants pay with their credit/debit card or e-check, and we don't even get the financial info. We just get the results.
If I were living in your country, I would be very wary of such policy/procedure. Sounds like something is off..
Chinmay:
It's not a Canadian thing, it's a business thing. Many landlords in your country and mine do ask for a tenant to provide banking information (bank and branch) as it provides another datapoint for validating the information provided in a credit history report. Simply asking for your bank and branch does not provide the landlord with the ability to inquire about your accounts or their content - under Canadian privacy law that would require explicit written consent.
That said, in instances where applicants are self-employed or graduate students living on research grants, we often request bank statements as a means to verify ability to pay.
Here in Canada, a landlord may request a social insurance number (SIN) - our equivalent to a Social Security Number in the U.S.A. - but they cannot require it and the applicant is under no obligation to furnish it (again, due to privacy law).
OK. US landlords that might be asking for bank info might not have other ways to verify, or might be living in state that has laws similar to Canada.
My process is pretty simple, and this is what is followed by most people I know.
Application has field for Social Security number. They fill it up.. I run the report based on the SSN. If they don't give me that info, the application automatically gets rejected for being incomplete application. Plain and simple. Lot of PM companies are now using online application, so they are never in possession of actual social security number. In fact, most of the times unless you fill in the SSN, you won't be able to submit the application.
Now for the verification of information, the tenant submits his photo ID and pay stubs. As long as the info on pay stub and photo ID matches with what's on the report...we have a valid applicant.
I guess, if they are self employed, asking for bank statement makes somewhat sense.. But for me, only if they are barely qualifying.. I would rather ask for Tax Returns for last 2 yrs to see if he qualifies based on how much he made. Say he made a very good 6 figure income and is reflected on his taxes, do you really need to see his bank account? I couldn't care less...
With students, I would just get mommy and daddy to co-sign.
I personally don't like to get too nosy in other people's business..
My landlord asked me to pay the move-in deposit with a personal check, which has the bank info on it. I also provided my Social Security number for the credit check.
Originally posted by @Chinmay J.:
With students, I would just get mommy and daddy to co-sign.
Student rentals is where we started and still a large part of our portfolio. I recommend having mommy or daddy be a guarantor not a co-signatory. As a co-signatory to the lease the individual would have all the rights of a tenant, including right of access. As a guarantor, mom or dad has the right to know if little Johnny or Janey is meeting their obligations and the privilege to open their wallet if they are not.
Having helicopter Mom pop into the house their kid shares with three other students unannounced does not help social cohesion between housemates ... it also doesn't help the kids become independent. ;-)