It is important to screen tenants. Find out how to check a potential tenant’s income, including whether or not they have a job and how much they make on average each month.
What you will find out:
How can I check a potential tenant’s income? What kind of proof can I ask for?
What if the person works for himself or herself or is part of the “gig economy”?
Can I ask their boss directly about their income and employment?
Can I instead call them and ask them to verify my job?
Would a credit check help me figure out if a person can pay?
Make sure your rental property is safe.
As an owner, you want to make sure that your property is rented to people who will take care of it. Since many problems between landlords and tenants, like late rent payments, are about money, the screening process should include checking if a potential renter is working and how much they make. If you check these things before letting out your property, you can avoid financial problems and evictions that cost money and take time.
Keep in mind that questions about income (and, in the end, proof) will not give you a full picture of whether or not an application is a good fit. You will need to ask a wide range of questions to learn more. You can check a potential renter’s income by looking at their job situation and average monthly pay, which are listed below.
How can I check a potential tenant’s income? What kind of proof can I ask for?
You can ask the application in person or on the Rental Application if they have a job, but do not just take their word for it. To check if they are working and making money, you should ask for the following types of proof:
Pay stubs: Do not just ask for the last one; ask for the last three months’ worth so you can show that you have a stable job. Pay stubs should also show how much a person has made so far this year.
W2s: Tax forms will show the person’s total pay for the previous year, which may help you figure out how stable their job will be in the long run.
What if the person works for himself or herself or is part of the “gig economy”?
If they work as a worker, expert, independent contractor, or run their own small business, you will need to ask for different papers. These things are:
People who work for themselves may not get pay stubs, but their bank records from the last few months will show how much money they are making.
1099s: These forms are given to workers and contractors, and they show how much money a client paid them. When put together, these tax forms can give you an idea of how much they made in total the previous year.
Can I ask their boss directly about their income and employment?
Yes. Pay stubs and tax forms are papers that look at the past and may not give a clear picture of a person’s present situation. Getting in touch with them directly can help you confirm that they are still working.
The best way to do this is to ask for a letter confirming your salary. This is a simple document from the applicant’s workplace that usually says how long they have worked there, how much they make, and if they are still a good employee. Do some study ahead of time to make sure the person has not given you false information (like having a friend pose as their workplace). Keeping this in mind, it can be good to ask for a work phone number or email address so the company can get in touch.
Make it clear in your request that you are doing a regular check of job status and pay as part of the renter screening process. Ask the boss to tell you the following about the candidate:
Position/job title
Start date
Salary or hourly wage, as well as, if available, average profit or tips
Whether the monthly income is likely to change in the next 12 months.
Ask if you should know anything else.
Depending on their internal rules, the employer may need proof that you are allowed to get the information you have asked for. In this case, you may need to show that you have the tenant’s permission by giving them a copy of the signed Rental Application or another information release form.
Can I instead call them and ask them to verify my job?
Yes. If you do not have a straight number, you might want to start by asking for the HR staff. They may also be able to put you in touch with the applicant’s straight boss. As with a writing request, make sure you do some research to rule out the chance that the candidate gave you a fake phone number.
Would a credit check help me figure out if a person can pay?
It might. Running a history check on an applicant, including a credit check, is always a good idea. This can show money problems that have nothing to do with their pay or job. The most important number is their debt-to-income ratio, which shows how much debt they have compared to how much money they make.
Make sure your rental property is safe.
No matter how nice a potential tenant seems when you show them the property, you need to know everything about them before you give them the keys. Using application questions, background checks, and proof of work and pay, you can figure out who will be the best tenant for your rental. This will save you the time and money of having to remove someone, fix property damage, or deal with other problems in the future.
