Is it normal practice for a letting agent to ask for copies of 3 months bank statemen

gordonstights

I asked this a few weeks ago although my agency only wanted one month copy of statements.

Someone on here told me they wanted them so they had proof that you have a salary (to cover their backs to the landlord) in case you default on rent payment.

gordonstights

SuperMum2008 wrote: »

This person was a respectable suit wearing professional, who was subsequently sacked and had I seen bank statements I would have seen it coming as they owed money left right and centre and couldnt pay.

This is pretty much the conclusion I came to (about the reason) when feeling a bit annoyed about my LA wanting to keep copies of my bank statement. I suppose an agency have to have proof if anything ever came to court that they took the tennant on in good faith as the bank statements would show a salary going in to cover outgoings.

EagerLearner

I don't really see how looking at someone's bank statements could shed light on how much or who they owe money to I see that proof of salary can be obtained by getting an employer reference but that sometimes a recent statement may be desirable, but 3-6 months, wow... I guess I feel it would be the same as me (a tenant) saying to the landlord that I need a copy of their 3-6 months bank statements, so I know they have enough cash to cover maintenance, and they have financial means to support themselves in their other property so that in case they were to lose their jobs they won't be trying to move back in...:o

I know a landlord may not see it this way and SuperMum I do feel for your situation and hope your agency can help you through this? I guess realistically you can never predict how a tenant will end up, same way tenants can't assess a landlord.

snapcracklepop

In England at least, a 6 month AST means you have to pay the rent for 6 months. The notice provisions only come into force when it ends and if it isn't renewed.[\quote]

Not strictly true. If there is a break clause then you can end the contract early, normally with 30s notice even from day one of the contract.

SuperMum2008

I can see both sides Eagerlearner!! It is a real minefield, certainly, but I would say that if either side feels uncomfortable, they should talk to the other and perhaps some mutual ground can be reached.

Sparky29

jenniferfluff29 wrote: »

Thanks everyone for your replies

Sparky29

Have I got this right? For the first 6mths I can leave at any point if I give 1 months notice?

The way that the LA described it, I would be liable for the rent for 6 mths irrespective of whether I had moved out and if I wanted to stay beyond 6 months then I would have 7 days to sign up to another 6 mths lease which I could leave by giving 1 months notice.

Thank you

Sorry for mis-leading you jenniferfluff29.
Ment wot the others said, just not wrote in gud england

WhySoHard_2

SuperMum2008 wrote: »

Im a landlord who wishes now that she had asked for more information. Ive been mucked around for months by a tenant and now they are refusing to leave despite being in arrears and trashing the flat (legal proceedings now issued). This person was a respectable suit wearing professional, who was subsequently sacked and had I seen bank statements I would have seen it coming as they owed money left right and centre and couldnt pay. Living beyond means seems increasingly common in young professionals who want the glitzy apartment lifestyle. Please spare a thought for landlords who are simply trying to cover the mortgage and are now months in arrears because of this. Although I see both sides of the coin, at the end of the day, I in effect gave my quarter of a million pound property to someone else to trash and squat.

What's the "glitzy apartment lifestyle"?

No my heart does not bleed for landlords and their "quarter of a million pound property.":p

sooz

SuperMum2008 wrote: »

This person was a respectable suit wearing professional, who was subsequently sacked

A recent LL's email sent to me suggested that young professional bankers should now be considered the worst type of potential tenant. Far better to get a tenant who works in the public sector.

tbs624

SuperMum2008 wrote: »

Im a landlord who wishes now that she had asked for more information

Did you undertake any enquiries at all - did you credit check the tenants via Maras,tenantverify etc?.

SuperMum2008 wrote: »

Ive been mucked around for months by a tenant and now they are refusing to leave despite being in arrears and trashing the flat (legal proceedings now issued). This person was a respectable suit wearing professional, who was subsequently sacked and had I seen bank statements I would have seen it coming as they owed money left right and centre and couldnt pay.

Bank statements will *not* necessarily help you with that and they will certainly not indicate whether someone will be able to hold on to their job.

You can have tenants who live on an authorised overdraft,so would fail on the "bank statement test" yet who prioritise the payment of their rent and keep the property in good order. They may have a separate high balance deposit a/c that they like to hoard money in and be a bit slow in transferring it as & when needed. Current a/c bank statements really are a pretty useless indicator of future intentions.

Additionally, if a tenant is signing up to pay you rent would you like to show them your bank statements so that they could check whether you were likely to abscond with their deposit (having failed to register it) or default or your BTL mortgage because you blew the last two months rent paid to you on Jimmy Choos and a few expensive nights out? Or could they also check out what the situation is with where you live currently and whether you can also fund that in case that gets repossessed and you try to give them notice and move into that rented property as an alternative?

SuperMum2008 wrote: »

Living beyond means seems increasingly common in young professionals who want the glitzy apartment lifestyle. Please spare a thought for landlords who are simply trying to cover the mortgage and are now months in arrears because of this. Although I see both sides of the coin, at the end of the day, I in effect gave my quarter of a million pound property to someone else to trash and squat.

Living beyond means is also common in those who MEWedand/or bought into BTL whilst houses were overvalued.

I'm assuming that you are relatively new to property letting, otherwise you'd understand that unfortunately the scenario you describe with your tenant is a risk that you run, whatever walk of life your tenants come from.You can have a credit check done, and it won't show that the tenant is about to default on all their credit card payments, give all their savings to a dodgy bloke that they met on the internet , give up their job and start growing waccy baccy in the living room, all as soon as they have moved in to your quarter of a million £ property.;)

Wading through the bank statements of potential tenants is simply an unwarranted & unacceptable intrusion and is of little real value.

jenniferfluff29

Thanks for all your replies.

Do I have to sign another 6mth agreement and incur another charge of £100 or can I just let it roll over? What if the LA insists that I need to sign up again?

Also, the LA told me that our deposit is put into "another account" that they can't touch. Should I look for further clarification on this and what should they be giving me as an answer to this question? ie is there some body which protects the deposits.

Thanks again everyone.