Ready to start renting but not sure how to verify that your tenants can make rent? Then check out our guide on how to verify your tenants proof of income.
Did you know that in 2015, over 2 million Americans faced evictions? And while this may come as a surprise to you, evictions can cost landlords a great amount of money if filed.
As tempting as it might be to quickly occupy a tenant space, it may cost you a lot of money if you can't verify their they can steadily make their payments.
Ready to start renting but not sure how to verify that your tenants can make rent? Here is a guide on how to verify your tenant's proof of income.
1. Pay Stubs
One of the most popular ways to verify your tenant's proof of income is via paystubs. Not only does this verify how much your tenant makes, but is also a way to verify their identity.
Each pay stub shows your tenant's full name, current address, and contact information so you're able to verify their identity for legal reasons.
2. Tax Returns
Tax returns are an excellent way to verify proof of income. Much like pay stubs, tax returns are a reliable way to verify identity.
Our suggestion is to ask your tenants for two forms of identification- a tax return and a paystub. This way, you can verify that both documents match and verify the suggested income.
3. Bank Statements
Let's face it. Some of your tenants are going to be self-employed. So requesting a pay stub or tax return can be easily manipulated. So if you're looking for supporting documents to verify proof of income for a self-employed tenant requesting bank statements is an excellent way to go.
In addition, if an applicant has a part-time job that he/she is claiming on the rental application, you are able to verify proof of income via their bank statements.
4. Letter from Employer
Another way to verify proof of income is by requesting a letter from your tenant's employer. Even though this specific documentation couldn't be used by itself to verify proof of income, you should request a letter with letterhead from the company your tenant works for.
5. Social Security Benefits Statement
If you're dealing with an applicant who is currently living off of Social Security benefits or disability, you are able to verify their income through a statement. This document will verify how much the applicant receives each month.
In conjunction with additional proof of income, you will be able to verify if this tenant will be able to keep up with his/her rental payment.
Verifying Proof of Income and More!
Whether you are looking to verify proof of income or are on the market for a new rental, we're here to help. We know how hard it can be to find a trusted property management company. Fortunately, we've built a great reputation with all of our clients in the San Bernadino, Riverside, and Los Angeles counties.
Thinking about renting in the near future? We'd love to help. Feel free to Contact Us and let us help you find the rental of your dreams.