4 Proof of Income Documents to Request from Potential Renters

As a landlord, ensuring that potential renters have a stable source of income is crucial in maintaining a profitable rental property. The early screening process of tenants is an overwhelming task. Landlord Rules 101 says it is essential to discuss proof of income documentation, whether that be strangers, friends, or even family. No matter how uncomfortable the conversation is, validating a tenant’s financial situation helps mitigate risks such as late payments, missed rent, and economic loss. Of course, you want to know what to ask for when making such a request. There are plenty of ways landlords verify financially reliable tenants. The three essential documents in this curated list are the most common and easiest methods for any property type and landlord.

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1. Old reliable paystub

Aside from the money, the most essential part of a check is the attached pay stub. It allows individuals to access detailed information about an employee’s earnings for a specific pay period, including gross income, deductions, and net pay. It also is a traditional and reliable source for landlords to verify income. Because they are issued directly from an employer, they reflect precisely the application’s monthly financial stability. A common theme amongst landlords is asking for the last 2-3 paystubs to get the most accurate information. However, paystubs may be challenging to request from self-employed workers, cash earners, and contractors. This is why reviewing what kind of job position they hold is vital when interviewing potential renters. The paystub is very useful when there are multiple tenants because it is unlikely to be altered or fake.

2. Bank statements and credit history

Bank statements are another accurate and quick way to confirm income. Landlords are authorized to request bank statements from the last few months to see the potential tenants’ regular deposits and assess the consistency of income. Bank statements often show all sources of income, such as direct deposits from employers, payments from clients for freelance work, or other forms of financial support. This is especially beneficial for anyone who receives outside financial assistance. For tenants who may be self-employed as independent contractors or engage in gig work, bank statements can serve as an alternative to pay stubs and provide an overall picture of their financial activity. While consistently accurate, they can be doctored. Because they are from a personal source, they can sometimes be manipulated, so landlords may also ask for additional documentation to verify the authenticity of the income sources. Credit history is another important document to look for. Accurate credit reports can give landlords an idea of financial responsibility and debt status.

3. Tax returns

Tax returns are another essential document to review when deciding for new renters. It is mainly the most recently filed returns that are often requested as a comprehensive way to confirm income. Tax returns provide a complete picture of a person’s annual earnings. It includes income from all sources, including a spouse’s, and often contains deductions or exemptions. This is particularly helpful for self-employed renters who may not have traditional pay stubs or regular bank deposits. Conveniently, everyone must pay taxes, so this document should be pretty easy to access.  While tax returns offer a long-term view of financial stability, they may not provide the most recent assessment of a renter’s economic situation. This is a potential downside for landlords who need to make decisions quickly. It may not reflect debt or current job status.

4. Pay someone else

It sounds weird, but true. There are many third-party services available to screen it for you. The landlord has a tricky responsibility when verifying income because everyone’s financial situation differs. In today’s economy, gig work and self-employment are on the rise. When there is too much to review, it can be easier to have the computer do it. These services, such as The Work Number or other income verification platforms, allow landlords to access employment and income data directly from employers or other verifiable sources. They streamline the verification process by providing a quick, reliable, and often automated income confirmation without requiring the renter to provide physical documentation. Third-party services benefit landlords who manage large rental applications and need a fast, efficient way to confirm income.

To maintain good communication practices and fairness in the rental process, landlords should clearly discuss their income verification requirements with potential renters. This can be done by outlining the required documents in rental applications during initial screenings or having them available with the listing. Landlords should always consider the nature of the applicant’s income—whether it’s salaried, self-employed, or coming from multiple sources—and adapt their documentation request accordingly. By employing a thoughtful, consistent, and fair approach to requesting proof of income, landlords can effectively assess a potential renter’s ability to meet financial obligations and maintain a positive and professional rental relationship. The most successful renter stories from landlords always include an element of transparency about proof of income documentation from both parties.