Are you getting ready to rent a home on your own for the first time? You’re reading through the application and you see something new: proof of income.
What is proof of income anyway? How do you prove your income and why do you have to do it? We’re here to talk about it.
Keep reading to learn all about proof of income when you’re a renter.
Why Do I Need Proof of Income?
Whenever you’re renting an apartment or renting a house, the person who is renting to you wants to make sure that you’re able to continue making payments on time. After all, they still need to pay their mortgage and utility bills.
It’s possible that you’ll change jobs or lose your job at some point, but providing that initial proof of income lets the landlord know that you’re more likely to be a responsible tenant.
What Are Common Forms of Proof of Income?
So what will most landlords accept as proof of income?
Most landlords request recent paystubs. This is the easiest form of proof of income because most people who work standard jobs have no trouble procuring these paystubs.
If, for whatever reason, your employer pays you in a different way, you still have options. You could use a paystub maker to create your own paystub as an alternative to a “real” one. These are still valid and they may be good for people who do contract work.
You may also be able to use a letter from your employer. This is a great option for people who are new to their careers and don’t yet have paystubs. It’s also good for students who are doing GSA appointments who aren’t making traditional income (but still have stipends).
The proof of income self-employed people tend to use is bank statements (or sometimes statements through money apps like Paypal). This shows the landlord that money is coming into the tenant’s account, even if it’s not through traditional means.
What If I Don’t Have Reliable Income (But I Can Pay)?
So what happens if you don’t make your money by working? This is an unusual situation, but most landlords will encounter it at some point, so don’t worry.
This is another situation in which a bank statement is a good option. The landlord just wants to know that you can pay for your rental home. They don’t care how you do it, so the money in your account is what matters.
If you receive disability, pension, or unemployment payments, 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. When in doubt, don’t be afraid to ask the landlord what forms of proof they’re willing to accept.
Proving Your Income Is Easy
Proof of income might seem complicated if you’ve never rented before, but there are plenty of ways that you can do it. If you don’t have a traditional paystub, talk to your landlord about what works for them. Don’t let nontraditional income get in the way of your new home.
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