12 Ways Renters Can Show Proof of Income

If you have income requirements for your tenants, such as income must be at least three times the rent, then ensure an applicant meets your criteria. Here are 12 ways renters can easily show landlords proof of income.

Pay Stubs

Require at least the last two months pay stubs to determine how often the applicant is paid and what their gross income is (and if it fluctuates).

Bank Statements

Renters who are self-employed won’t receive regular pay stubs, so providing two to three months bank statements is a great way to show proof of income in deposits.

W-2 Income Statement

It’s produced by an employer and is very reliable. It’s a great way to see the applicant’s declared income from the previous year (and if it was consistent).

Tax Returns

Two years tax returns are a great way to check for proof of income because they show unearned income as well as overall income history.

Formal Letter From Employer

A formal letter from their employer is easy to obtain. You may be able to learn more as well, such as the employer gives reference to the tenant’s good work ethic.

Social Security Statement

A social security statement means that the applicant’s income is stable. This statement is easily verified, consistent, and not typically taxed.

1099 Form

A1099 form covers miscellaneous income for self-employed renters. One drawback is a self-employed renter could have multiple 1099s, so it’s difficult to verify if their income will remain steady.

Worker’s Compensation Letter

A renter will typically receive a worker’s compensation letter if they were hurt in a workplace. The letter is issued by either the insurance company or the court. Be sure to check the expiration date.

Court Ordered Awards Letter

A renter may be receiving compensation such as alimony or child support. The only downfall to this proof of income is that the court order can be appealed or stalled.

Severance Statement

If a renter has been laid off, they may receive a severance statement which entails a sum of money. However, this is usually a one-time influx of funds.

Proof of Bonus and Incentive Payments

Renters who have a commission-based job can provide documentation for proof of bonuses or incentive payments. Commission-only tenants often have a steady source of income.

After you receive proof of income from an applicant, it’s vital to verify this information. Check to see if the applicant is still at the job they listed and confirm that they plan to stay for the foreseeable future.

I hope this was helpful. Feel free to reply with any questions you may have or call me at 949-209-9494 or visit GenuineManaged.com to learn more about us.

With best regards,
Marcel Ford
Genuine Property Management

* We are not attorneys, financial advisors, nor tax experts and the information above we deem to be accurate but is not guaranteed.