What if a rental applicant has no bank account?

  • They will never get a credit card
  • If the credit card company is worried about the risk
  • Why should a landlord take a greater risk?

Having a bank account should be a necessity for a renter you may approve. If a renter says they do not have a bank account and will only pay everything with cash, this request could be a big red flag for them performing illegal activities for making money. Illegal income activities could put your home at risk if you should rent to them.

Ask for a checking account, because to open a checking account the bank runs a Chexsystems and checks and if this person is not on the blacklist. If they can't get a bank account they are probably a very bad credit risk


A renter must provide proof of steady employment for at least one year, or excellent rental history. 
Bank statements are one way to prove a renters income. Pay stubs and an employer's reference, confirming employment and salary, does authenticate monthly income but only for the short term.

What if you don’t get paid the rent and you must evict this renter?

When you obtain a money judgment against a person, you essentially receive a piece of paper which is called a "judgment." Having a judgment against someone does not mean the same as getting paid on that judgment. I have yet to encounter any ex-tenant that came knocking on my door begging me to take the money that they owe me. Usually they require a little prodding. So, after obtaining a judgment you will often need to spend additional time and money to collect on that judgment. If your ex-tenant is not "collectible" then it may not even be worth it to sue them in the first place.

There are numerous factors that you should consider when determining if a person is collectible or not. Are they employed? Do they have a bank account?

It is important to verify that the renter has a bank account, in case they default and you get a judgment, then you proceed with garnishment. A landlord can't do anything with a judgment if they can’t garnish the bank account where the pay check arrives.


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