Types of Income Verification Documents
Income verification requirements vary depending on the type of assistance you’re requesting, the state you’re in, and if your application was referred by a housing resource center.
Types of income verification requirements include:
- Pay stubs
- Tax returns
- W-2 forms
- 1099 forms
- Qualified disability documents
- Old W-2 forms
- Old 1099 forms
- Old tax returns
- Old SSI/SSDI documents
- Old medical bills
- Old witness statements
- Old drug screens
Income and eligibility verification documents must be in English and must be in chronological order. Most states’ income requirements are based on federal guidelines.
Cancelled Checks, Credit Reports, Etc.
Most landlords will go through almost exhaustive efforts to verify your income. There are three main sources of income that are commonly used to verify proof of income and they are pay stubs, canceled checks, and credit reports.
Pay Stub or W2 Form
A Pay Stub (also known as a W2 form) is the form provided by your employer that displays your earnings (before income taxes or deductions are taken out) for a particular pay period. This form is used to request a copy of your W2 form. More commonly, the pay stub will simply show your gross wages, before taxes, pay period, and direct deposit information. What you will need to provide when you provide your pay stub to your landlord is your social security number, your bank account number, and ID number.
It is important to note that a pay stub will generally only show earnings for a maximum of 12 months. There are a few exceptions to this rule, particularly those made under federal law. If you need to verify proof of income over a longer period of time, you may need to provide a cancelled check or credit report.
A cancelled check is a document provided by a bank, government agency or other business entity that details the times you have cashed a check or have been paid. These documents are generally valid for years and will typically note any discrepancies in your bank accounts.
How to Get Applicants’ Pay Stubs
Lets face it, HUD rules and regulations can be confusing. And as anyone who has ever applied for housing assistance can tell you, the application process can be bewildering and frustrating. But there are a few things you can do to streamline the process and ensure your application and any other documentation that you submit is as accurate as possible.
One of the first and most important documents that landlords accept is your pay stub. But as you know, the reality is, most tenants don’t receive a pay stub from their employer. This is usually for a variety of reasons – the job might not be regular enough or the particular company doesn’t issue it at all.
How to Verify Income Using Pay Stubs
For those landlords who rent to those without much income, it may be hard to check if their tenants are making enough money. One popular method of verifying income is to check for the employer’s name and phone number on the pay stub. While this can be a good way for the landlord to make sure that they know where the money is coming from, it’s not perfect.
Additionally, landlords can also use a variety of alternative methods to confirm a tenant’s income. Here’s a look look at some of the different methods available and how to go about using them to verify income.
Pros & Cons of Accepting Pay Stubs
It’s not so common these days but landlords do accept pay stubs and proof of income as part of the application and verification process. They still do it so that they can verify that the applicant actually has the income to rent a place. And if they’re okay with that, the applicant can move in as soon as a lease is signed. However, acceptance of pay stubs can be a bit hit and miss. Let’s talk about some of the pros and cons of accepting pay stubs.
Easy to Reference – One of the main benefits of accepting pay stubs is that it’s pretty much the quickest and easiest way for a landlord to reference the income of an applicant. It’s just good old fashioned stapling and them showing a picture of the stub to the current tenant.
Convenience for the Tenant – It just makes things a lot easier for the tenant.
Price of the Rent – Some landlords are not in the position to verify the income of every applicant. If they can’t verify the income of an applicant, they may be missing out on some favorable rental prices. Using proof of income can help a landlord get more money in their pocket.
If you are an owner of a rental property, keeping things organized can help avoid fines, liens and other penalties. Because landlords are required to verify income eligibility, tax returns can serve as a great way to confirm income. While you are allowed to request mail and bank statements from tenants, providing a copy of their tax return will show that they are not living paycheck to paycheck. In addition, with other government agencies, such as the Social Security Administration providing tax returns to landlords, a copy of a tenant’s tax return doesn’t provide as much proof of equity.
How to Get Applicants’ Tax Returns
This is probably the most common question I’m often asked by clients. Are you ever going to post income verification rental forms on this website? You might say, “yes” and be overjoyed, or you might say, “no” and I’ll either be disappointed in you if ever happen to decide to build it or I’ll be thrilled that you’re not doing it just yet (but I’ll still worry since you will eventually do it). So I’ll just say, “yes” for now.
Here are seven ways you can verify a renter’s eligibility for your property, culminating in how to get their tax returns.
Applicants need to document their income, that way landlords can:
A) Ensure tenants have an income that’ll allow them to pay rent.
B) Verified income that will prove they are eligible financially to rent.
Applicants can satisfy this verification of income by providing a paystub, a W-2, a recent UFB1 form, or other forms of income documentation.
How to Verify Income Using Tax Returns
One of the most common ways to verify income is to use tax returns. Before rent approval is granted to a potential tenant, the rental property owners will usually want to review the tenant’s tax returns. They can use this information to analyze how much the tenant will be paying each month. Reviewing social security statements and paystubs also can be relevant when looking at how much a tenant will be making per pay period. Most landlords will view these documents as an easier way to verify income than doing a thorough background check.
Tax returns should always be prepared by a professional and should not be manipulated or edited. The IRS has a number of strict guidelines around how tax returns should be prepared. If the landlord is able to account for all of the income that the tenant says they make, it is more likely that the landlord will be willing to approve the tenancy. If they are unable to verify all of the income and get away with only looking at some of the tax returns, they may not be comfortable approving the tenancy.
Pros & Cons of Accepting Tax Returns
As a landlord, have you ever wanted proof of your tenant’s income? Many landlords are accepting a tax return document as proof of income. Your tenant is required to submit this document with their rent check.
Here’s the 7 types of documents you’ll find in a tax return:
W2, W3, W4, and other forms of payslip.
In box 7: Box 6 reports military pay. Box 3 reports a 1099-B form reporting income from dividends, interest, or other sources. So, if you’re concerned your tenant has a large income, you can go through their tax returns to verify they have a large income.
Other documents include a 1099-MISC forms, 1099-R forms and 1042-S forms. If you’re an accountant, you could spend a lot of time looking through these forms to see how much money a tenant has earned.
When officials verify a tax return, they usually do it by checking the totals to see if the numbers check. This can be a lengthy process but is the most efficient option.
Another option is to compare the financial statements of the company to see if it corresponds to the amount of income reported on the tax returns.
A bank statement shows you how much of your paycheck was used towards your rent and utility bills. You can confirm the amount of money you have to spend each month. If you pay the correct amount and no more than the amount specified on the statement, your landlord can only charge you for the exact amount of money for which you are liable.
If you choose to use a service like RentTrack to manage your rent payment, your landlord will receive a printed statement each month. Some landlords may refuse to accept documents that are not signed, but a receipt that is printed on a home computer works just as well.
If the landlord thinks you are not making the required payments, they will ask you for additional documentation such as pay stubs.
How to Get Applicants’ Bank Statements
To get proof of income, landlords should obtain the following information:
The applicant’s bank statement for the three months prior to tenancy.
The applicant’s final paycheck stub.
If the applicant works for an employer that doesn’t provide a statement to an employee, employers need to provide at least the last four weeks’ pay stub.
The recommendation letter from an employer.
The benefits provided by the employer.
If an applicant is self-employed, they should provide a statement from their accountant.
However, the information requested above, doesn’t need to be provided if the applicant does not work for a company, but was self-employed.
How to Verify Income Using Bank Statements
Most landlords want to make sure that the renter can afford to pay the rent. And this is understandable, especially when you’re facing higher rents than before and you are in competition with other landlords.
So, if you’re a landlord, you need to verify the renter’s income. And the first thing you can do to ensure that the renter can pay the rent is to require a copy of the renter’s bank statement. However, this method can only verify the renter’s income up to a certain amount.
The next thing you should check is that the renter has all income and expenses listed on his or her tax return, and the current year income is higher than the past few years. This is because landlords will use the current year income to check how much the renter can pay for the entire year.
If you’re using bank statements to verify a renter’s income, make sure that the renter produces copies of:
- Last year’s bank statements
- Most current bank statements
- Last year’s pay stubs
- Current year’s pay stubs
- Current year tax return
- Property tax statement for the previous year
Pros & Cons of Accepting Bank Statements
There are two basic types of identification for tenants to provide when signing a lease agreement.
Letter From Employer
A letter from your current employer (payor – the name they use to identify themselves) that provides the requested documentation. Letters should come from the following employers:
- Your current employer
- A past employer
- Your previous employers
- Your previous employers’ bank
- Your previous employers’ tax preparer
- A financial institution
- Your previous employers’ agency or their attorney
How to Get a Letter From an Applicant’s Employer
You can verify income in multiple forms. You can verify employment income by looking at the employee’s pay stub or other documents that list the employee’s income like a W-2 tax form or a 1099 tax form. You can verify rental income by looking at the applicant’s rental agreement and other rental agreements to make sure the applicant lives in a unit being rent. You can also verify trust income.
If you want to verify employment income, the best way is to have the employee put their pay stubs in the application. Alternatively, the applicant can bring the pay stubs with them when they are applying.
Another option is to follow your standard procedure to verify payment to the employee and verify employment income. This can be done by checking the applicant’s W-2 tax form or other documents that list the employee’s income from their employer.
When verifying rental income, the best way is to have the applicant fill out a rental application. If you do not have a written rental agreement, you can use the form in the sample document section on /rental-application
A trust can be verified through financial documents. You can verify a trust’s income by looking at the trust’s trust summary and financial statements.
How to Verify Income Using a Letter From an Employer
Apartments around the country are always filled to capacity, and a number of individuals make an effort to search for an apartment, often still living in rented accommodations. They do so quickly because many become exhausted at living in apartments which are overcrowded and not updating their living conditions for the increasing number of residents.
But before you send a letter for verification of your income, it is important to ensure that you are not going back to a period when you were unemployed. This could have an adverse effect on your credibility and potential landlord.
Write a short and simple letter for verification of employment and submit it to a local branch who will then forward it to your landlord. A letter from an employer can arrive at your landlord’s address in the mail, or you can also print and attach it on a paper to avoid the cost of postage.
The letter must contain the following information your employer:
- Employer?s Address
- Names of the employers
- The date of employment
- The source of the income
- A means to contact the employer
- The date of employment
If you are required by law, include the date of your job and the address of your employer. If you have recently resigned from a place of work, include the date of employment as well. This will justify your demand for an apartment.
Pros & Cons of Accepting a Letter From an Employer
The general rule of thumb for most landlords is to accept a lease application that includes a valid signed letter from your tenant’s employer stating that they earn the stated income.
The landlord will be able to verify income to the actual dollar amount, ensuring that your tenant is making enough money to pay all their expenses each month.
Cons of Accepting a Letter from an Employer as Proof of Income
The landlord will be unable to verify the tenant’s income to the actual dollar amount unless they request a copy of the tenant’s tax return (which is not an option for most landlords).
The landlord will not know if the tenant is claiming a stated income, or if they’re embellishing their earning to obtain a cheaper rent.
Landlords must accept a lease application that includes a valid signed letter from your tenant’s employer stating that they earn the stated income.
What to do if your tenant’s health is an issue and they can’t provide a current letter from their employer:
Profit & Loss Statements
Profit & Loss (P & L):
A profit-and-loss statement (P&L) shows how much money the business made or lost year to year. It lists all the expenses and revenues for a business and their corresponding income or loss.
The profit-and-loss statement is one of the most important financial statements a business makes. It is a financial statement that is used to show assets, liabilities and owner’s equity (net worth) for a particular period. The statement is used to indicate the company’s overall financial condition. The financial statements are used by investors and potential investors to make decisions on whether to invest in the business. The statement is also used by business owners to keep track of the business’s affairs and to evaluate it’s future.
Get a statement from the bank.
Ask the bank for a Profit and loss Statement for your property.
Include all the rent, Mortgage, insurance, management fees, yard man rent i.e. every source of income.
The property details should include: description of the property, address, building and lot area (if applicable), section (if applicable), page number (If applicable), and columns for each expense, income or benefit received, and the amount of that expense or income received.
How to Get Applicants’ P&L Statement
Proof of income verification (PIV) is a common requirement for prospective tenants. The American Landlord Association (ALA) and the National Multifamily Housing Council (NMHC) suggest that, if possible, landlords verify the income of a prospective tenant with the bank or credit union that accounts for their deposits and/or paychecks.
The two organizations also recommend asking the tenant to mail or fax a copy of his or her most recent deposit history. Typically, if an applicant does not provide proof of income, the landlord should reject the application and let the applicant know the landlord has a business relationship with a third-party company to verify proof of income and can forward the necessary information to review with the applicant.
Additionally, the ALA and NMHC suggest consumers follow these tips to increase the odds that they’ll get approved for an apartment:
- Provide proof of income , such as a bank statement, paystub, or a similar document, even if an applicant is unable to obtain a clear understanding of the financial details.
- Provide a clear explanation of any financial discrepancies among the applicants.
- Discuss the reason, such as medical expenses or unemployment, for the financial discrepancies.
- Attend an interview before renting.
How to Verify Income Using a P&L Statement
When your income is being verified in a housing dispute, it should be supported by a statement from your employer showing you make certain amount of money. The P&L statement is the best way for the landlord to verify income.
This is because the P&L statement indicates more information for the landlord to verify income. One example of this would be how much money you make per day. It is often more difficult to determine this number than to reference the amount displayed in your pay stub.
You need to present the statement from your employer to the landlord to prove that you are making the income displayed on the statement.
However, many employers do not have the statement available in digital format. To resolve this issue, you could show the digital copy to the landlord on a disc, or even print it out yourself.
Lastly, if you are just starting a new position, you can establish your pay rate with the landlord at the beginning of the position so that the statement is ready by the time your employer sends it to you.
Pros & Cons of Accepting a P&L Statement
Typically landlords ask that applicants sign a statement attesting to whether or not they receive the financial data. It’s simply a verification of whether or not the applicant receives this financial information. They are asking for this as an assurance that they have a source of income and can pay the rent.
This can be a bit of a problem since most landlords give one month for the statement to arrive from their bank. This means that if you get a new job or even move in mid-month, this verification of your income becomes useless.
On the other hand, a P&L statement has a number of benefits as well. By getting a signed statement from the applicant, landlords can rest assured that they are not approving a potential tenant who is guaranteed to not pay rent.
So before you consider issuing a statement for income verification, take a look at the benefits and drawbacks. They will allow you to determine whether or not you are comfortable with the risk involved.
Pros of Collecting a P&l Statement for Income Verification
P&L Statements Provide the Following Information
A. A clear indication that the applicant currently qualifies to rent the property.
B. An accurate indication of how much the applicant will pay.
C. An indication of how long ago the applicant has last paid rent.
D. An indication of whether or not the applicant is on the lease market.
Social Security Benefits Statements
Benefits statements are important documents that detail the benefits that you’ve earned. In particular, these statements detail retirement, Social Security, and workers’ compensation benefits. This lets landlords know how much your monthly income is.
A benefits statement helps landlords know whether or not you qualify for their property. Without statements, they could choose to rent to someone who they know is likely to default, without checking to see if the situation is likely to happen.
Social Security benefits statements are often used as proof of income for a lot of properties. They show the tenant’s retirement benefits and, if applicable, workers’ compensation benefits. Because they are very specific and are issued by the government, these statements are effective proof of income.
Even if your benefits statement is not very extensive, landlords probably will recognize the name of the entity that issues it – the Social Security Administration. Since no one else issues these, the landlord can be confident that the statement is legitimate.
How to Get Applicants’ Social Security Benefits Statement
When you’re trying to fill job openings in your business but not having success finding applicants that match your requirements, you may want to hire employees who have worked for other employers before.
The odds are higher that the people you end up hiring will have prior work experience because these applicants have demonstrated they can handle the job-related responsibilities. But if they’re not willing to provide you with a list of their previous employers and personnel records, then this might mislead you into thinking that they have never had a job.
To make sure applicants can’t pull this type of stunt on you, your business should give all new employees a wide range of documents you can use to verify their employment history. One of these documents is the Social Security Statement (sometimes called a Statement of Earnings and Employment).
By law, every employer is required to keep a copy of the Social Security statement employees fill out before they start working. The statement contains the applicants’ name, Social Security number, date of birth, and the number and dates of their initial and current employment.
How to Verify Income Using a Social Security Benefits Statement
If you want to be certain that your landlord has an accurate idea of how much income they can expect for the month (and avoid the hassle of haggling back and forth), a statement sent directly to the landlord from the Social Security office of the state where your tenant lives is a good place to start. As long as your landlord is informed, you need not ever give another 30 days’ notice of rent increases.
Whatever you do, avoid including anything detailing the full name of the individual that is applying for SSI or SSDI benefits. Include their ID number. If your landlord is dispute that SSI is the proper source of income, you can refer to the Illinois Department of Human Services guidelines, which stipulates that proof of income can include Healthcare access cards, Medicaid cards, food stamps, and even cash payments.
Pros & Cons of Accepting Social Security Benefits Statements
Virginia law requires landlords to accept a Resident's Social Security Statement as a valid and qualifying form of residency proof. However, this requirement may or may not be a good idea for landlords to accept this example of a "proof of residency" letter.
Currently, if tenants provide a Resident's Social Security Statement, the statement must be accepted so long as the statement includes the original name, current address, and is accompanied by two pieces of identification (one proof of U.S. citizenship and one approved letter of residency).
This requirement of accepting a Resident's Social Security Statement is not new. Even before October 1, 2012, landlords should have been accepting this form of an address verification letter. At least, that is the case with most U.S. states.
Please note, the acceptance of the Resident's Social Security Statement is a requirement under state law, not federal law. MSAs and FAPs do not require the acceptance of the Resident's Social Security Statement.
The acceptance of the Resident's Social Security Statement is currently a "soft law" requirement. It is not codified in Virginia Code. Therefore, the acceptance of the Resident's Social Security Statement as proof of Virginia residency is not absolute.
Yes, landlords are required to accept Resident's Social Security Statements. But there are some important limitations that you should understand.
Landlords must verify a prospective tenant’s income before leasing a property. Prudent landlords will ask for proof that the tenant has the ability to pay the rent. After all, the landlord is a businessperson as well.
Obviously, there needs to be a written agreement between the landlord and the tenant before the landlord can require proof that the tenant has the ability to pay the rent.
Will the tenant sign a written agreement? If the tenant won’t sign an agreement, landlords still have some options for getting proof of the tenant’s income.
How to Get an Applicant’s Court-ordered Agreement
With every applicant rebracing your door, an important question you’ll ask is, Did the tenant provide you with a copy of their court-ordered agreement? In order to prove you an applicant’s income eligibility, they must supply you with a copy of this document.
Court-ordered agreements (COAs) are used to govern the repayment of any loans granted by landlords. If a tenant doesn’t provide you with their COA, they can’t be considered a good credit risk.
That’s why you’ll need to ask the question, –Have you received our tenants’ Court-ordered Agreement?” to any applicant wishing to rent a unit from you. Below, we’ve provided you with 7 ways landlords can verify any tenant’s COA.
How to Verify Income Using a Court-ordered Agreement
A tenant often files a rent-increase petition with a Michigan judge to raise the rent to a higher amount. The judge may order the landlord to collect a larger rental payment with a court-ordered agreement or a judgment. In most cases a court-ordered agreement means that a rise in the rent is allowed if you agree to a new rental amount.
When a landlord files a request for court-ordered payments that exceeds the rent amount set in the original rental agreement, a judge can order regular payments to the landlord ” instead of a base rent increase.
Landlords who agree to this option are required to pay the additional amount and deposit the full amount owed to the tenant. In some cases, the judge may allow your landlord to collect a partial amount.
If you live in a mobile home, you may need to obtain a court order if you don’t want to pay the special annual tax fee to your landlord.
If you are experiencing problems with your lease renewal, make sure you are complying with your lease terms and conditions (which should be in your lease agreement) before you speak to the landlord.
Pros & Cons of Accepting Court-ordered Agreements
Not only will a landlord benefit from having a verified tenant, the landlord will usually be required to provide additional proof of income, i.e. pay stubs or a valid SIN. In most instances, the landlord will be required to compensate the tenant double the amount of rent for the next 12 months … at times even up to 3 times the amount of rent.
If you’ve been living in the same place for a long time and at the end of the lease term you decide to move out, you may find it uncomfortable to provide proof of income as you’re moving out of your old place. Consents for the landlord are not mandatory in this case, and the landlord is not required to compensate you for the extra rent and deposits.
If you’re planning to move out of your current place, you may want to consider moving in with a friend or get a sub-let till your next lease term.
Tips for Spotting Fake Proofs of Income
It happens a lot at the end of the month, figures from various sources make you lose track of which earnings you earned this month, if you didn’t save all of the documents to make your claims. Here are 7 ways landlords can verify proof of income.
Look at Pay Stubs
Landlords can generally see the first 6 digits of what is printed on the pay stub. You can easily prove the amount is correct by filling in the Social Security number from the pay stub and comparing the amount you’re claiming with the amount you’re paying.
Check for Originality of the Pay Stubs
All twelve months of pay stubs should have the same information. If the stubs vary in any way, you’re claiming wrong income.
Check the Date
Date proof of income and Social Security cards to ensure that personal and tax information is current.
Ask for a W-2
To determine whether you’re working and claiming the correct amount of income, the landlord should ask you for a paycheck stub. Only employees are required to have W-2 forms to submit them to the IRS. A landlord cannot withhold security until they get the W-2 form, or have a copy of the W-2 form.
Listen to Your Gut
Not every landlord is going to require or want to verify income. If your landlord has asked for this information and you don’t feel comfortable giving it, it might be a sign that this landlord isn’t the right person to rent to.
Your gut feeling is always a good indicator. You can imagine what you’d do in the situation and whether you’re comfortable with it. Be mindful of how your gut is feeling and whether you’re intimidated by providing this information. It’s probably going to feel strange not to feel that way, so allow yourself some leeway. You might not be giving up anything valuable in the process – in fact, you could be avoiding something potentially dangerous by not providing proof of income.
Require Tenants Sign a Form 4506
Form 4506T can be used to verify that a taxpayer is not on public assistance (not receiving TANF, SNAP, SSI, SSA Disability or food stamps benefits), child support, or low-income housing. Tenants who are exempt from filing a tax return, who are under age 19, or who are a full-time student are asked to sign the form to confirm their status.
If the Form 4506T is not signed, the landlord is required to prepare and attach a copy of the form to the lease. The landlord must also offer the tenant the opportunity to review the information on the form, to correct any mistakes, and to discuss the ways to avoid any possible public assistance penalties.
If a tenant refuses to sign the 4506T, the landlord must report the tenant’s refusal to the IRS. The landlord must also attach a written explanation, which is required to be kept on file for at least three years. The landlord must also send a copy of the information sent to the IRS to the IRS. The landlord can accomplish both tasks by sending a copy of the written explanation to the IRS and attaching a copy to the report sent to the IRS.
Compare Pay Stub Income to Year-to-Date Income
Proof of income is an important part of obtaining a rental property because you need to be able to prove that you are a viable candidate for tenancy and that you have a sufficient source of income to sustain you while you rent.
A landlord or property manager needs to be confident that you will not become a financial burden to them by incurring costs that are out of your means to pay.
One way to show the landlord that your income is sufficient for the rent is for you to prepare an official pay stub. Provide a copy of your stub, along with a casual statement or explanation of your gross pay per week.
When you provide a copy of your pay stubs, a landlord will be able to verify that you can afford the rent they are asking for. Keep in mind that most pay stubs are called Form W-2 by the government. If you were an employee, your pay stub will show your gross pay, taxes withheld, and any other deductions for FICA.
If you are like me, you may not have kept all your pay stubs all these years. If you haven’t kept up with your annual tax returns, you can purchase back copies of your salary stubs from the government website. Since you have already done your taxes for the previous year, you only need to wait a few weeks for your return.
Review the Ongoing Statement Balance
The largest amount of income many homeowners have on open accounts is their mortgage. As long as you have an active mortgage payment, this account should remain current. Checking the statement balance will provide the most accurate estimate of your monthly mortgage payments.
Future acquisitions, such as a new car or house, may also be added to this line of credit. If the balance remains consistent, credit card statements may indicate that you’re not able or willing to make payments, which may adversely affect your credit score.
However, if you increase the balance on your account, it will be recorded as a significant new purchase on your credit report. Contact your lender to determine if these products will be added to your current line of credit.
Do an Online Search for a Tenant’s Business
Since most U.S. tenants operate on a side income or on a fixed income, it’s a great idea to run an online search for a tenant’s business.
Look for recent articles on the tenant’s company that are listed in local newspapers or other publications. You can also search for the company on online reviews sites.
If you still can’t verify the tenant’s income, you may want to consult with a lawyer to discuss how to best handle the situation.
Another way to verify a tenant’s income is to just ask. For example, if you’re worried about your tenant defaulting on rent, you can offer her a cash payment to show proof of income.
Ask about the tenant’s source of income, as well as any other sources of income, such as alimony, child support, or commuted income. Ask them where they receive their money from. Also ask them to provide you with all bank statements, utility bills, and any other documents proving their income.
You can also offer to fact check a tenant’s rental application yourself. This approach works well if you’re afraid of the tenant asking for too much money.
Renter Has No Proof of Income
Filing for an eviction in court can be a long, expensive, and tedious process. Asking a renter to provide proof of income is a common first step in the tenant not paying rent process. While they should have plenty of proof of income to be able to pay the rent, many landlords do not go to the lengths they could to ensure they receive the income they are owed.
One of the main requirements in the eviction process is that the renter produce proof of income. But how can they prove that they make enough money to live when many of them have no income to put on their tax returns or to send you a bank statement of the wages or income they earn from another job?
In these situations, a renter may not be able to prove their income at all, or if they do, it’s not enough to satisfy the landlord. In these situations, your renter will need to provide either proof of a bank account that has enough money or proof of a second job.
The easiest way for a tenant to provide proof of income is to pay for a registered mail letter with a money or check from their paycheck to you, or a letter from their employer requesting that they send you their W-2 form or their paystub.
Others may agree to send you copies of their tax returns and statements from their current or previous employers.
How to Beat The Eviction Process
I can tell you from experience that the eviction process is daunting at best. If you have falling rent balances, unpaid rent, water damages, unpaid utility bills… the list goes on and on. Over bogs rent, landlord tenant issues are particularly complicated, especially if you’re a tenant that has worked hard to pay rent on time and to keep the place in good condition.
For landlords, the following two reasons are quite common: being evicted and being sued for eviction can easily be a financial disaster, since if you get evicted, you’ll need to pay your lawyer, and if you’re sued for eviction, you’ll need to pay your landlord… in addition to your lawyer.
And although we’re not lawyers, I’d like to share with you some tips that might save you from both of these issues… some of them straight from landlords themselves.