Here’s How Landlords Verify Income

Income verification – it’s something almost every landlord performs when screening applicants for apartments.

It’s easy for some people to prove their incomes but not for everyone, and that’s what makes some people nervous. After all, how do apartments verify income? Do they only allow pay stubs?

When your job pays you regular paychecks, you can use the pay stubs you receive from them.

But what if you work at a job where you don’t get pay stubs? If this is the case, rest assured. There are other ways you can prove the money you earn from work.

To help you understand this a little better, continue reading to find out how apartment managers verify income when evaluating rental applications.

Pay Stubs

The number one document that landlords ask for in the income verification process is pay stubs. A pay stub is a form that every worker gets every time it is payday. This is assuming you work for a company as an employee.

Your pay stubs show the specific amount you earned during a pay period (which is usually one to two weeks), and it also provides a year-to-date amount. You should receive one every payday.

Many companies even provide online access to pay stubs and income-related information to their employees. If your company offers this, ask for the login credentials to get started with it.

So, if you’re applying for a regular apartment, or even for an income-restricted unit, you should bring your pay stubs along when you fill out your application.

The next thing you might wonder is, do apartments check if pay stubs are real? The answer is yes, and no.

A traditional landlord might not go to a lot of extremes to check the validity of your pay stubs. An income-restricted building will, though.

One of the ways that landlords can confirm the validity of pay stubs is by comparing them to other types of documents, such as bank statements.

Bank Statements

When you get paid from your employer, do you get cash or a check? You probably always get a check and never get cash. Employers do not pay their wages with cash.

When you get your paychecks, what do you do with them? Do you redeem them for cash, or do you deposit them?

If your employer offers direct deposit services, all of your paychecks land in your bank account. The good news about this is that you can use your bank statements to prove income.

For example, if you don’t have any pay stubs on hand, give the landlord a copy of your most recent bank statements. If you have pay stubs, the landlord might also ask for your bank statements to compare them to your earnings.

If you’re self-employed, your bank statements might be the best way to prove the money you earn. Your statements will show all your deposits and expenditures, and it will show the average balance you keep in your account.

W-2s

Another option to use for proving income is your W-2s. If you still have yours from last year and work for the same employer, you could prove income by submitting these documents.

Landlords also use W-2s to confirm the amounts on pay stubs when people apply for apartments. If you are self-employed, you might not have any W-2s to provide, though.

Tax Returns

Previous tax returns offer another way for you to prove income, and this option is great even for self-employed individuals.

A tax return shows your income, taxes, deductions, and a lot more. If you need to prove how much money you earn, this is an excellent option for you.

You can submit one or two years of tax returns to the landlord along with your pay stubs and bank statements. Offering multiple forms of documentation increases your chances of passing the income verification process with a landlord.

Letter From Employer

One form of proof you could also consider using is a letter from your employer. If you’re having trouble coming up with all the other types of documents that prove your earnings, why not ask your employer for a letter?

The letter an employer offers should be on company letterhead and should include essential details. The vital information should consist of the employee’s name and address, job title, and income.

The letter can also contain an invitation for the landlord to contact your supervisor as one more way to confirm your employment and salary.

Business Profit and Loss Statement

For those of you who work for yourself, kudos to you. Working for yourself to earn your income is an excellent choice in life until you need to prove your income. When this happens, you might face some challenges.

To overcome these challenges, consider creating a profit and loss statement for your company. You can submit these financial statements to a landlord when showing your income.

Did you also know that you can use a pay stub creator to make pay stubs from your company? A lot of small business owners don’t realize that this is an option. But it is, and it’s simple to do.

How Do Apartments Verify Income? Need More Answers?

So, how do apartments verify income? They confirm it through pay stubs, W-2s, bank statements, tax documents, and other documentation.

If you want to increase your chance of getting approved for an apartment, gather up these types of papers to hand to the landlord when you meet him or her.

Providing them upfront will offer the proof the landlord needs and may even help you come across as a confident, prepared individual.

If you still have questions or want to learn more, check out our blog for more helpful articles about apartment rental and self-employment.

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