Sunday, April 11

Required for Rental: What to Do When You Need Proof of Income Items

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If you are one of America’s 43 million renters, chances are you have been asked to show proof of income. Being able to show your recent and long-term income is essential, as it allows the landlord to know that you will actually be able to pay the rent. However, doing this might be easier said than done.

Many landlords and housing companies will not accept print-outs of bank statements, as it is easy to move money around to give the impression that you earn more than you actually do. Therefore, it is helpful to know the right ways to show proof of income to a landlord. If you are trying to rent a new home, here is everything you need to know about proof of income documents.

Paystubs Are Always Best

There is no getting around the fact that a standard paystub is the best proof of income that you can possibly provide. Pay stubs are easy to verify and contain all of the information that a landlord could possibly need. A paystub is essentially a proof of income form that includes your net earnings, deductions, bonuses, social security number, and any other information that is relevant.

Of course, if you are a freelancer or are self-employed, you will not receive paystubs from an employer. In this case, you can use a verified template to create your own at home and print them off if needed. Here are a few samples of amazing payroll check templates that you can use to create paystubs for your potential landlord.

Other Proof of Income Documents That Are Widely Accepted

If you are simply unable to provide paystubs due to your situation, there are many alternatives documents that you might even have lying around the house right now.

Tax Returns

This one is an easy one. Your tax returns from the previous year or years will give a good overview of how much money you make and what tax bracket you are in. This will help your landlord get a solid idea of your ability to meet your rent obligations.

Profit and Loss Statements

If you do not receive pay stubs or paychecks because you own a company or derive income from capital gains, simply print off your latest profit and loss statements. You can show quarterly and annual profit and loss statements as these will show the income that you have access to.

1099 Tax Form

A 1099 tax form is filled out by anyone in the US who is reported miscellaneous, non-salaried income. This could be dividends, cash-in-hand jobs, or commissions as a freelancer. Show your landlord a completed and approved 1099 to demonstrate your proof of income.

Letter from Employer

If your employer cannot give you a paystub for some reason, you can request that they send a proof of income letter directly to your landlord so that they know what you earn. Since an employer is usually obligated by the law to provide you with proof of income documentation, they should really not refuse to do this.

Keep Your Finances on Track in 2021

Now that you know exactly how you can provide proof of income to a landlord, it is time to learn more about getting your finances on track in 2021. For this, we are here to help. Make sure to consult our Finance and Insurance guides for the latest tips on financial security in the year ahead.

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