If you are applying to rent an apartment, landlords will typically want two different proofs of income from a renter. There are various forms you can provide for this.
Here are some of the top 5 ways you can show your proof of income for an apartment application:
Pay stubs will be given to you every month by your employer showing how much money was made that month, how much was deducted for tax purposes, and the employee’s personal information. These pay stubs will also include the year-to-date income.
It is important to note that only W2 employees will receive these pay stubs, so if you are an independent contractor or self-employed you will have to provide additional information such as bank statements or tax returns ( a 1099-K or 1099-MISC form).
Tax returns can be used as a secondary form for proof of income for a W2 employee or a primary source for someone who is self-employed. You will typically want to get your tax returns up to two to three years to provide proof of income.
Another form of proof of income is your bank statements. This could be a secondary source for both self-employed and W2 employees. Although bank statements are a secondary proof of income, statements give the landlord the ability to see your entire banking history or check cash reserves.
If you have bounced checks or overdrawn accounts, your potential landlord will be able to see this and it could portray you not having the financial stability to rent.
Letter from employer
A letter from your employer will show how much you earn and how often you are paid. This will be verified by your employer and includes their personal contact information and company name, address, and phone number. This letter needs to be typed or written on a company letterhead and signed by your employer.
Make sure the information you provide on your application matches what your employer writes so your potential landlord can verify your ability to afford rent.
Social Security Benefit statement
If you are on social security or disability, you can use your social security statement showing your earning records. This is often used by people who are retired or disabled and will show the amount you recieve on a monthly basis.
Since Social security or disability income may be low, it is important for employee’s to provide your potential landlord with enough information to show you are able to afford your monthly rent. Generally, you should have at least three to six times the yearly rent in the bank or receive three times the (posted?) rent each month.
There are many different ways to show your proof of income when applying to rent an apartment. If you are looking to get a personal loan, CrediReady can help.
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