Bank statements
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Bank statements (by Ed [WI]) Jun 24, 2022 3:05 PM
       Bank statements (by David [MI]) Jun 24, 2022 3:10 PM
       Bank statements (by Ken [NY]) Jun 24, 2022 3:21 PM
       Bank statements (by David [MI]) Jun 24, 2022 3:31 PM
       Bank statements (by David [MI]) Jun 24, 2022 3:33 PM
       Bank statements (by Sisco [MO]) Jun 24, 2022 3:43 PM
       Bank statements (by DJ [VA]) Jun 24, 2022 3:52 PM
       Bank statements (by Jim in O C [CA]) Jun 24, 2022 4:23 PM
       Bank statements (by Jason [VA]) Jun 24, 2022 4:33 PM
       Bank statements (by Ed [CA]) Jun 24, 2022 4:48 PM
       Bank statements (by dave [CA]) Jun 24, 2022 5:06 PM
       Bank statements (by Ken [NY]) Jun 24, 2022 6:00 PM
       Bank statements (by Libi [NY]) Jun 24, 2022 6:54 PM
       Bank statements (by Bonanza [NC]) Jun 24, 2022 7:14 PM
       Bank statements (by GKARL [PA]) Jun 24, 2022 7:44 PM
       Bank statements (by Oregon Woodsmoke [ID]) Jun 24, 2022 9:09 PM
       Bank statements (by 6x6 [TN]) Jun 24, 2022 9:58 PM
       Bank statements (by Sisco [MO]) Jun 25, 2022 11:56 AM
       Bank statements (by Ray-N-Pa [PA]) Jun 27, 2022 7:06 AM
       Bank statements (by peter [NH]) Jun 27, 2022 11:04 AM
       Bank statements (by DD [FL]) Jun 27, 2022 12:13 PM
       Bank statements (by DD [FL]) Jun 27, 2022 12:13 PM
       Bank statements (by Sisco [MO]) Jun 27, 2022 12:20 PM
       Bank statements (by peter [NH]) Jun 27, 2022 12:31 PM
       Bank statements (by Frankee [IA]) Jun 29, 2022 9:28 AM

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Bank statements (by Ed [WI]) Posted on: Jun 24, 2022 3:05 PM
Message:

Once i settle on a candidate to rent one of my properties, I require 3 months of bank statements. I've found it to be one of the best predictors of successfully paying rent.

Do any of you do this and what are your thoughts.

--108.201.xx.xx




Bank statements (by David [MI]) Posted on: Jun 24, 2022 3:10 PM
Message:

My ideal tenants are two adults in their mid 20s to mid 30s .

They are college educated, white collar employed. They have credit scores in the 700s.

They would be suspicious of handing over bank statements. BUt as a proxy for the information in a bank statement, I ask for 1st months rent + 1.5 mos deposit + half month move in fee, total 3 months. That allows me to know they have 3 months rent on hand.

All the other rent pay stuff can be checked with LL references and court searches. --50.4.xxx.x




Bank statements (by Ken [NY]) Posted on: Jun 24, 2022 3:21 PM
Message:

I do not do that,most of my tenants do not even have bank accounts although the ones who do are better tenants.David you charge half month move in fee? what is that for? just because you can because they will pay it? --74.77.xx.xx




Bank statements (by David [MI]) Posted on: Jun 24, 2022 3:31 PM
Message:

Haha, Ken, glad you ask!

MI's SD law says LL cannot deduct for cleaning. So most LLs around here charge $200-300 cleaning fee upfront. I decided, well, why not charge as much as the market will bear? But I do not call it a cleaning fee because I don't want them complain that they found a speck of dust in the corner.

It is also a leverage tool: if the applicant just barely meets my requirements, I require them to pay all the movein fee. If the applicant far exceeds my requirements, and politely negotiates, I MAY lower it --50.4.xxx.x




Bank statements (by David [MI]) Posted on: Jun 24, 2022 3:33 PM
Message:

ALso, when I have multiple vacancies, I can use the carrot of a lower movein cost to fill a less desirable unit . --50.4.xxx.x




Bank statements (by Sisco [MO]) Posted on: Jun 24, 2022 3:43 PM
Message:

Ed, I too require bank statements. By doing so I get current rent verification, job verification, income verification, car payments, credit cards….. basically verification for the application is all in the bank statements.

Rent on! --149.76.xxx.xxx




Bank statements (by DJ [VA]) Posted on: Jun 24, 2022 3:52 PM
Message:

I just started to ask for a bank statement this vacancy.

I only ask for the last month.

My reasoning I want to see they have savings to cover move-in expenses above their monthly expenditures.

If I see the beginning balance is about then same as the ending balance, I know they spend everything they earn. I had a guy say that on payday, he'd have enough for move in costs.

Maybe, but then what will you live on? Credit cards that will use up next month's rent! --68.229.xxx.xxx




Bank statements (by Jim in O C [CA]) Posted on: Jun 24, 2022 4:23 PM
Message:

I do 2 months of bank statements and the last 2 pay periods stubs or wage print outs.

--99.23.xxx.x




Bank statements (by Jason [VA]) Posted on: Jun 24, 2022 4:33 PM
Message:

Three months bank statements? Are you taking marginal applicants? A credit report shows their spending habits and is a better indicator of their WILLINGNESS to pay. Having money in the bank doesn’t mean they’re willing to part with it. I’d take an applicant with a 700 FICO and 3x income over a 550 FICO with 6 figures in the bank any day. --73.177.xxx.xx




Bank statements (by Ed [CA]) Posted on: Jun 24, 2022 4:48 PM
Message:

Jason [VA]), I don't accept anyone with a 550 FICO period. For that matter, I haven't accepted anyone with a 700 FICO for years. --108.201.xx.xx




Bank statements (by dave [CA]) Posted on: Jun 24, 2022 5:06 PM
Message:

I ask for 3 months from their disbursement account plus 3 months from their savings / investments account.

I space them back over the last 12 or 18 months to avoid applicants who have salted the last months in anticipation of needing to show money on hand.

their disbursement account statements show their spending habits line by line and their income / deposits.

rent payments out and work income coming in.

debit cards vs charge cards are very telling as well.

applicants living on fast food and buying gas at $10 or $15 at a time on their debit cards,......aint so good.

credit cards will show up on credit report,....but the bank debit cards give you a line by line detail on where the dollars are going --67.49.xx.x




Bank statements (by Ken [NY]) Posted on: Jun 24, 2022 6:00 PM
Message:

David,interesting,I thought only landlords in NY city could do that,get what the barket will bear.ED,what is your minimum credit you accept? I am barely over 700 myself,that being said i wouldnt rent to myself for other reasons anyway.The thing is i had a 780,I bought a truck about 3 years ago and have not missed payments on the truck or credit cards or anything and it went down to about 710 where it has stayed since then --74.77.xx.xx




Bank statements (by Libi [NY]) Posted on: Jun 24, 2022 6:54 PM
Message:

I was asking to proof rent payment for the last 12 months, telling that the best way was to show me a bank statements with the rent amount. --74.90.xx.xx




Bank statements (by Bonanza [NC]) Posted on: Jun 24, 2022 7:14 PM
Message:

I ask for 3 months of bank statements with rent or mortgage circled and paycheck deposits circled. They can black out account numbers if it bothers them.

I am looking for it to match what they say on the application. I am looking for financial reserves. If their savings/checking is only $3K then they are not financially solvent enough for a single family house. If they have $20K in savings you know they aren't going to cry "I don't have enough for rent this month".

How low would I go on bank balances? I don't know. I haven't really had to cross that bridge.

Some here think asking for bank statements is too much. HEck you are already asking for proof of rent payments, pay stubs, and their credit history. If they balk at bank statements then they are not cooperative and you don't have as complete a picture of their financial stability as you could have.

Try asking. What's the worse that can happen? They say "I don't have a bank account?" Even my 20 something kid has a bank account. Do you want a renter that you can't ACH the funds from? Do you want someone who is living payday to payday? Maybe in a rooming house but not in a single family home. Not me, no way. Negative Ghost Rider. --65.188.xxx.xxx




Bank statements (by GKARL [PA]) Posted on: Jun 24, 2022 7:44 PM
Message:

I ask for the last 6 months proof of rent payments. Sometimes they'll give me bank statements as proof. It's easy enough to redact the account numbers if they're concerned about security. --216.131.xx.xx




Bank statements (by Oregon Woodsmoke [ID]) Posted on: Jun 24, 2022 9:09 PM
Message:

I don't ask for bank statements unless they are self-employed. If they have good credit and a good job with good income, they are going to have bank accounts, but I don't really care how much savings they have if they have the income to pay rent and a long history of paying their bills.

Usually their prior landlord will let me know if they pay rent on time. If they are moving from one of those big apartment buildings that won't give references to anyone, I'm probably going to reject for no landlord references. But if they really seem good, then they are going to have to prove they paid rent on time throughout covid with whatever method, receipts, bank records, whatever valid proof they can come up with. --76.178.xxx.xxx




Bank statements (by 6x6 [TN]) Posted on: Jun 24, 2022 9:58 PM
Message:

Ken, you just created my next post --73.120.xx.xxx




Bank statements (by Sisco [MO]) Posted on: Jun 25, 2022 11:56 AM
Message:

Ed, consider changing the order in your screening process.

I get the bank statements with the application and the credit bureaus all at once, before I spend any time on it.

My last step is the in home cleanliness check. --149.76.xxx.xxx




Bank statements (by Ray-N-Pa [PA]) Posted on: Jun 27, 2022 7:06 AM
Message:

Instead of asking for a statement.......I ask on the application: If you were selected, how much money would you have available to move in?

Guess what happens with that implied close statement. The potential resident isn't alarmed and they are allowed to be honest - as it might end up costing them face if they are not. It also opens up the door to charge a small $30 admin fee that I charge at move in.

I understand how some of you charge more - and your reasons seem valid. I just want to get paid for the hour and 15 minutes of going over rights and responsibilities. Where many people want to avoid contact with their customers, I feel it ever so important to train them up front --24.101.xxx.xxx




Bank statements (by peter [NH]) Posted on: Jun 27, 2022 11:04 AM
Message:

This is how I do it. In order expedite the decision process. I ask to see their credit score on their phone from credit Karma or their bank. It has to be above 700. Then on my application I ask how much they have approximately have saved in checking/savings etc. I want to know that they have a "cushion" if their car dies or something. If they have let's say at least $9000 then I ask to see it on their phone (bank account) to verify. IF their are no other red flags then I am able to immediately ask if they are ready to make a decision and get a check from them to move in.

If they are marginal qualifying I always will look them in the eye and tell them "I do not want to lead you on" and tell them to continue their search.

I do charge a $175 carpet cleaning/replacement fee when they move out taken from their deposit (Its in the lease) --73.89.xxx.xxx




Bank statements (by DD [FL]) Posted on: Jun 27, 2022 12:13 PM
Message:

Wow. You all must be in a totally different market. I have eight properties but they are typically blue collar properties and I would say half my tenants don't have a bank account. Many of them work for cash. Many have horrible credit. My advantage is that big apartment complexes in strict landlords on credit scores will not rent to them. I take first month's rent and security deposit up front.

I think I've only missed a couple of rent payments with those eight properties over 10 to 12 years. And that was because his roommate was defrauding him out of the rent he gave his roommate to give to me. I've never had to evict anybody. --67.8.xxx.xxx




Bank statements (by DD [FL]) Posted on: Jun 27, 2022 12:13 PM
Message:

Wow. You all must be in a totally different market. I have eight properties but they are typically blue collar properties and I would say half my tenants don't have a bank account. Many of them work for cash. Many have horrible credit. My advantage is that big apartment complexes in strict landlords on credit scores will not rent to them. I take first month's rent and security deposit up front.

I think I've only missed a couple of rent payments with those eight properties over 10 to 12 years. And that was because his roommate was defrauding him out of the rent he gave his roommate to give to me. I've never had to evict anybody. --67.8.xxx.xxx




Bank statements (by Sisco [MO]) Posted on: Jun 27, 2022 12:20 PM
Message:

DD, you should write an article that outlines your operating systems. I can’t make any money dealing with the unbanked, cash employment crowd. --149.76.xxx.xxx




Bank statements (by peter [NH]) Posted on: Jun 27, 2022 12:31 PM
Message:

Yes. I have noticed from other posts that there are lots of different markets and different A,B,C and D type units which is like a category within a market. I started off with a "D" 3 family a long time ago. Right now I would call all my units "B". --73.89.xxx.xxx




Bank statements (by Frankee [IA]) Posted on: Jun 29, 2022 9:28 AM
Message:

We currently ask for last 30 days paystubs that must have their name/address/dates and amounts on them and if they are self employed or otherwise have a less "stable" or trackable form of income then we ask for most recent 30 days bank statements. I think we may start asking for multiple months after reading this, it just makes sense. Also, we don't check credit (or if it is on their report, we rarely take it into account unless their score is directly linked to landlord payments) because we see many who rent are renting because they don't have the credit to buy. What we put our biggest stake in is their previous rental history. Many people might have not great credit due to medical issues or other things that might have been beyond their control (I worked in a collection agency for 6 years prior to becoming a property manager) but that doesn't mean they won't make their rent a priority. I have also had people with plenty of income and saved funds that still didn't pay rent because they were just bad with the money they had. I think there is a lot that goes into play with tenants and screening, but what their previous landlord has to say about them generally is going to tell you more than anything else. Our biggest questions is "Would you rent to them again?" --173.23.xxx.xxx



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