Are you about to rent a house on your own for the first time? You read the application and you see something new:proof of income.
SummaryWhy do I need proof of income?What are common forms of proof of income?What if I don't have a reliable income (but can pay)?Proving your income is easyWhat is proof of income anyway? How to prove your income and why do you need to do it? We're here to talk about it.
Keep reading to learn all about proof of income when you're a tenant.
Whenever you rent an apartment or a house, the person renting to you wants to make sure that you are able to continue making your payments on time. After all, they still have to pay their mortgage and utility bills.
You may change jobs or lose your job at some point, but providing this first proof of income lets the landlord know that you are more likely to be a responsible tenant.
So what will most landlords accept as proof of income?
Most landlords ask for recent pay stubs. This is the simplest form of proof of income, as most people in standard jobs have no trouble getting these pay stubs.
If for some reason your employer pays you differently, you still have options. You could use a pay stub maker to create your own pay stub as an alternative to a "real one". These are still valid and they can be good for people who work on contract.
You can also use a letter from your employer. It's a great option for people just starting out in their careers who don't yet have pay stubs. It's also good for students doing GSA appointments who don't earn a traditional income (but still have stipends).
Proofs of income that self-employed people tend to use are bank statements (or sometimes statements via money apps like Paypal). This shows the landlord that the money is coming into the tenant's account, even if it's not through traditional means.
What happens if you don't earn your money by working? This is an unusual situation, but most owners will encounter it at some point, so don't worry.
This is another situation where a bank statement is a good option. The landlord just wants to know that you can pay for your rental property. They don't care how you do it, so the money in your account is what matters.
If you receive disability, pension or unemployment benefits, you can show proof of this to your landlord. You can also show proof of payments from legal situations, such as alimony or child support.
This can be confusing. If in doubt, don't be afraid to ask the owner what forms of proof they're willing to accept.
Proof of income can seem complicated if you've never rented before, but there are plenty of ways to do it. If you don't have a traditional pay stub, talk to your landlord about what works for them. Don't let non-traditional income get in the way of your new home.
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