Landlords may request bank statements from potential tenants during the rental application process. This request is usually made to verify the applicant’s income and ensure they can afford the rent and other related expenses. Bank statements can also be used to assess an applicant’s financial stability and creditworthiness. By reviewing the statements, landlords can gain insights into the applicant’s spending habits, savings patterns, and any outstanding debts or obligations. This information can help them make an informed decision about whether to approve or deny the rental application.
Tenant Privacy Rights
Landlords are not permitted to ask for bank statements from potential or current tenants. This is a violation of tenant privacy rights. In addition to being an invasion of privacy, requesting bank statements can also be used for discriminatory purposes, as it can reveal information about a tenant’s race, religion, national origin, familial status, or disability.
What Information Can a Landlord Request?
- Name
- Social Security number
- Date of birth
- Employment history
- Income
- Rental history
Landlords may only request information that is relevant to the tenancy, such as whether the tenant can afford the rent and has a history of paying rent on time. They cannot ask for information that is not relevant to the tenancy, such as a tenant’s bank statements, credit card statements, or investment accounts.
What to Do If a Landlord Asks for Bank Statements
- Politely decline to provide the information.
- Explain that it is a violation of your privacy rights.
- File a complaint with the appropriate government agency.
| State | Contact Information |
|---|---|
| California | Department of Consumer Affairs: 1-800-952-5210 |
| New York | Division of Housing and Community Renewal: 1-800-382-1000 |
| Texas | Texas Department of Housing and Community Affairs: 1-800-525-0657 |
Landlords who violate tenant privacy rights may face legal consequences, including fines, penalties, and lawsuits.
Fair Housing Laws
Landlords are prohibited from discriminating against tenants based on race, color, religion, national origin, sex, familial status, or disability. This includes discrimination in the terms, conditions, or privileges of housing. One way that landlords can discriminate is by asking for bank statements, as this information can be used to determine a tenant’s financial status and ability to pay rent.
The Fair Housing Act (FHA) is the federal law that prohibits housing discrimination. The FHA makes it illegal for landlords to:
- Refuse to rent or sell housing to someone because of their race, color, religion, national origin, sex, familial status, or disability.
- Discriminate against someone in the terms, conditions, or privileges of housing because of their race, color, religion, national origin, sex, familial status, or disability.
- Make, print, or publish any statement that indicates a limitation or preference based on race, color, religion, national origin, sex, familial status, or disability.
The FHA also prohibits landlords from retaliating against tenants who exercise their rights under the law. For example, a landlord cannot evict a tenant because the tenant filed a complaint of housing discrimination.
In addition to the FHA, there are also state and local fair housing laws that prohibit housing discrimination. These laws may vary from state to state, so it is important to check the laws in your state or locality.
If you believe that you have been discriminated against by a landlord, you can file a complaint with the U.S. Department of Housing and Urban Development (HUD) or with your state or local fair housing agency.
HUD has a toll-free number for fair housing complaints: 1-800-669-9777.
What Can Landlords Ask for?
Landlords are allowed to ask for certain information from potential tenants, such as:
- Name
- Contact information
- Rental history
- Employment history
- Income information
Landlords can also ask for a security deposit, which is a refundable deposit that is used to cover any damages to the property.
What Landlords Cannot Ask for
Landlords cannot ask for information that is not related to the rental application process. This includes information about a tenant’s race, color, religion, national origin, sex, familial status, or disability.
Landlords also cannot ask for bank statements, as this information can be used to discriminate against tenants based on their financial status.
What to Do if You Are Asked for Bank Statements
If a landlord asks you for bank statements, you can politely decline to provide them. You can also file a complaint with HUD or with your state or local fair housing agency.
Table of Fair Housing Laws
| Law | Prohibits |
| Fair Housing Act (FHA) | Discrimination in housing based on race, color, religion, national origin, sex, familial status, or disability. |
| State and local fair housing laws | Discrimination in housing based on race, color, religion, national origin, sex, familial status, or disability. |
Acceptable Income Verification Methods
When applying for a rental property, landlords often require proof of income to assess an applicant’s ability to pay rent. Landlords may request bank statements as one form of income verification, but there are several other acceptable methods an applicant can provide.
Methods of Income Verification
- Pay Stubs: Recent pay stubs, typically from the last two to four pay periods, serve as proof of employment and income.
- Employment Verification: A letter from the employer on the company’s letterhead verifies employment, job title, salary, and length of employment.
- W-2 Forms: W-2 forms from previous years provide evidence of past income and employment history.
- Tax Returns: Copies of tax returns from the previous year or two are a comprehensive record of income, including wages, self-employment income, and investment income.
- 1099 Forms: Freelancers, independent contractors, and self-employed individuals can provide 1099 forms to verify their income.
- Bank Statements: Bank statements can show regular deposits from employment, government benefits, or other sources of income.
- Government Benefits: Proof of government benefits, such as Social Security, disability, or unemployment benefits, can be provided through official statements or award letters.
- Investment Income: Statements from investment accounts, such as dividends or interest income, can demonstrate additional sources of income.
- Rental Income: Landlords who own other properties can provide proof of rental income through lease agreements and rent receipts.
- Child Support: Court orders or statements showing regular child support payments can be used as proof of income.
Additional Considerations
While landlords can request income verification, they cannot discriminate against applicants based on their source of income. For example, a landlord cannot reject an application solely because the income is derived from government benefits or child support. Additionally, landlords are prohibited from asking for more income than is necessary to cover the rent and associated expenses.
| State | Landlord Access to Bank Statements |
|---|---|
| California | Landlords cannot request bank statements as a condition of tenancy |
| New York | Landlords can request bank statements if the rental application fee is waived |
| Texas | Landlords can request bank statements, but they cannot be used to discriminate against applicants |
| Florida | Landlords can request bank statements as part of the application process |
| Illinois | Landlords cannot request bank statements unless the applicant has a history of late payments or evictions |
Discrimination Claims
A landlord’s request to see bank statements may raise fairhousing concerns, especially if the request is based on discriminatory factors such as race, color, religion, national origin, sex, familial status, or disability. To avoid discrimination claims, landlords should follow these guidelines:
- Do not request bank statements from all applicants. Only request this information if it is necessary to verify an applicant’s income or assets.
- Be consistent in your requests for bank statements. Do not request this information from some applicants and not others.
- Do not use bank statements to discriminate against applicants. For example, you cannot deny an application because the applicant has a low bank balance or because they receive government assistance.
If a landlord is found to have discriminated against an applicant based on their bank statements, they may be subject to legal action. This could include a lawsuit for damages, as well as an order to stop discriminating.
Tips for Landlords
- Use a rental application that does not ask for bank statements.
- If you must ask for bank statements, be sure to do so from all applicants.
- Explain to applicants why you are requesting their bank statements.
- Do not use bank statements to discriminate against applicants.
- Keep all bank statements confidential.
- If you are asked for your bank statements, ask the landlord why they are requesting this information.
- Be aware of your rights under fair housing laws.
- If you believe you have been discriminated against, you can file a complaint with the Department of Housing and Urban Development (HUD).
Protected Characteristic Examples of Discrimination Race - Denying an application because the applicant is a member of a particular race.
- Charging a higher rent to an applicant because they are a member of a particular race.
Color - Denying an application because the applicant has a particular skin color.
- Charging a higher rent to an applicant because they have a particular skin color.
Religion - Denying an application because the applicant practices a particular religion.
- Charging a higher rent to an applicant because they practice a particular religion.
National Origin - Denying an application because the applicant is from a particular country.
- Charging a higher rent to an applicant because they are from a particular country.
Sex - Denying an application because the applicant is male or female.
- Charging a higher rent to an applicant because they are male or female.
Familial Status - Denying an application because the applicant has children.
- Charging a higher rent to an applicant because they have children.
Disability - Denying an application because the applicant has a disability.
- Charging a higher rent to an applicant because they have a disability.
Well, my friend, you’ve reached the end of our inquiry into the mysterious world of landlord-tenant bank statement inquiries. It’s been a fun ride, hasn’t it? But seriously, you should know that you have rights, so don’t let any landlord bully you into handing over your financial history. If you ever need to brush up on your rights, feel free to revisit this article. Until next time, keep your finances private and your keys jangling!