I’m having a bit of challenge in getting bank statements from prospective Ts. It was not an issue 2-3 years back, but lately with fewer applicants in general, I want to check if anyone has better ways. As I have one bed flats, most prospects have only done house share before that requires no such checks. I make it clear before, during and after viewing that I’ll need bank statements (filtered out to show only specific transactions) to manage expectations. I even offer to see the statements in front of them (and not keep copies). Prospective Ts agree only to make excuses at later stage and wasting my time. In the past, bank statements have helped me identify problem tenants, even when credit checks gave good score, so I don’t want to go ahead without one. Any suggestions how others are doing it?
People are more wary of id fraud, scams and even big organizations being hacked and losing their data. But bank statements showing every purchase etc can feel v intrusive and doesnt tell you anything if they use a credit card instead.
Provide an ICO notice saying how youll use their data etc and offer to provide proof of ID and ownership in return
Say upfront in viewings that you use referencing which requires openbanking access so the companies can see their history of past rent payments and income. And Eg in advert
‘All applications will be subject to full referencing -right to rent, ID, employer, income and affordability checks (bank checks). Applications will be not be accepted if potential tenants cannot comply.’
That will put off anyone who has concerns and unwilling to share
Alternatively simply dont ask for the detail yourself and use a referencing co which does use openbanking. They may be more willing to share with a ref co than you as a private individual
Good luck
I would simply let the applicant know that this is standard procedure and, as they’ve already signed my data protection form, they can see that I’m going to hold their data securely and destroy it once it’s no longer needed (i.e. after application successful in the case of statements). if they refuse at that point, then I’d simply say thanks but no thanks and move on.
It’s not worth the risk renting property to anyone who won’t be transparent with you, particularly so since the RRA came into effect.
And I would also suggest that you don’t ask them to redact anything. You’re doing this to get a complete profile of the applicant and loan repayments, top ups from relatives/friends, gambling, pet insurance payments are all indications of what kind of person you’ll be letting to.
Oh… and I never do a credit check before checking bank statements. Waste of time and money.
In my vetting I let them know before hand that I will not be using ’ Rent Now’. It is my property and I control the tenancy and will be using my tenancy agreement. This is the first thing I ensure they understand.
If the perspective tenant must pass the rent affordability calculator. If the move in date then agrees, I get a block viewing going so the current tenant is not disturbed.
Once the viewing is booked I send them my vetting requirements and tell them that I am covered by data protection and that if the deal does not go through I will be deleting their telephone number email address and any email conversation to ensure gdpr.
In my vetting requirement I require, three most recent bank statement, three months most recent payslip, employers contract, share code if applicable for right to rent, passport copy, employer reference and previous landlord reference. I make sure that I tell them that open rent is only used as an advertising platform by myself and nothing else all monies are exchanged directly with me after we have signed the tenancy agreement .
After the viewing is interest is generated the vetting then starts and I take a holding deposit which is a week’s rent.
As soon as they pass the vetting which should take no longer than 48 hours, tenancy agreement is signed and the money taken up front which is one month rent in advance plus five weeks deposits less the holding deposit.
The tenancy is now secured by both parties.
I included a section in my GDPR privacy notice on how I handle any sensitive documents requested such as bank statements during referencing and made sure the tenancy applicant had a copy at the earliest opportunity. The notice said that the document would only be used for this purpose, would be reviewed immediately and then destroyed, including electronic copies from all devices and servers. I found that this approach tended to inspire confidence that I was acting professionally.