Welcome to San Diego Blog | January 10, 2019
Ways to Prove your Income Beyond a Pay Stub
A question that any landlord will ask during your rental application is “Do you make enough to pay your rent each month?” and it is up to you to prove that you can. Landlords want a tenant who has the financial means to consistently pay rent in full and on time. It would be foolish of a landlord to take an applicant’s word so you will need to show proof of income ie. the amount of money you earn or receive. In California landlords need to be very careful as an eviction for non-payment can take well over 6 months!
While a pay stub is the most common method of proving income, not everyone receives a regular paycheck so here are some other options for showing your income:
Employment Verification Letter
This is perhaps the best way to show proof of income beyond a regular pay stub. Your employer’s HR department will be able to provide a landlord with a letter stating the nature of business, length of employment, salary and opportunity for bonuses. This can help to verify income that may not be reflected on a pay stub such as tips or commissions.
Signed offer Letter
If you have been offered a new job, a signed acceptance letter of this job should be enough for most landlords. This letter will have your salary and contact information for your employer so your landlord can verify all of the information. This is very common when moving to a new city or graduating from school and starting a new career.
W-2s, 1099s, Tax Returns
Another easy way to show your income is to use your W-2 Wage and Tax Statement. If you are not in a W-2 position you will receive a 1099-MISC form instead. A 1099 form is also issued for interest and dividends on investments, and government payments.
Official Statement from CPA or Trust Manager
As more and more people are working for themselves or as freelancers often receive paychecks from many different clients/customers. While a copy of your most recent checks is always helpful, most landlords would prefer to see an official letter from your CPA or financial manager. This is especially helpful if you are self-employed or have a seasonal business as your CPA can state your income from the past year and your projected income for the current year.
If you are a beneficiary of a trust, your trust manager will be able to send a letter detailing the payment guidelines and your access to the trust, which is considered income.
Yet another way to prove your income is to provide the landlord with a copy of our bank statements. This can show consistent deposits or a large sum of money showing your ability to pay your rent on time. You can also show investment accounts or any other places that you have money saved.
Financial Aid Documents
If you are in school it is unlikely that you are earning enough money to qualify for the rental that you want. If you are receiving any sort of financial aid to help with your housing, this can be used as proof of income and your ability to pay rent on time. To prove this most students provide us with loan, scholarship and/or grant documents.
Last, but not least, if you are not able to prove your income a guarantor may be your only option. A guarantor is essentially promising your landlord that your rent will be paid if for any reason you are unable to do so. A guarantor can be anyone that you choose, but make certain they have an exceptional credit score and have very strong financials. Some landlords look for a yearly income of 80 times the monthly rent!