Proving your Ability to Pay Rent; Top Five Proof of Income Examples
With landlords having to evict tenants who cannot pay rent every now and then, they have come up with a method of determining a potential tenant’s ability to keep up with paying rent on this site. The general consensus is that a tenant should only be able to rent a property if his or her rent is three times the monthly rate as shown here. For the landlords to be sure about your potential to pay rent, you are required to produce the documents shown on this homepage. Keep reading to know more on the proof of income you should provide.
Any potential tenant who wants to have an easy time when renting or looking at properties should make sure to bring along his or her Pay Stubs as proof of their ability to pay. There are software resources that will allow you to create paper check stubs when you require a physical copy but it is not always necessary since most things are going digital but bring your Pay Stubs is necessary when hunting for a house.
Tax returns is the second document on this list and one that is highly reliable proof of income; with this, your potential landlord can view your yearly income to gauge whether you can pay the rent for the property or not. Pay Stubs are reliable proves of one’s ability to pay rent but since not everyone receives the standard weekly paycheck, tax returns documents really come in handy for such potential tenants.
If you want to show your ability to pay, you can get a detailed statement from your bank, showing all the transactions you have conducted, including the total incoming and outgoing amounts. Compared to the other documents, bank statements come with the risk of some transactions being misidentified. You can also get a letter from your employer, confirming current employment and the level of income that has been mentioned.
Social security documents; if you are living on social security from the government, you can use these documents as proof of income because they show that the payments you receive are valid. Employed or not, you need to convince a potential landlord that you can pay rent monthly which s why the ledger documents, 1099 form from the IRS, and bank statements are important for the self-employed individuals. These are some of the documents you need to prove your financial health to a potential landlord.