The popularity of renting homes is nearing an all-time high seeing as how we have more renters today then we’ve seen over the last 50+ years. There are several reasons for this including young generations struggling with student debt and an unbelievably expensive housing market.
Fortunately, renting a home is simple so long as you can verify that you make enough money to keep up with payments. If you’re not sure how you can present proof of income to your landlord, keep reading.
There are several ways that people can disclose how much they make. Here are five common methods.
Your W-2 is a form that discloses how much money your employer has paid you over the course of a year. Since this form breaks down exactly how much money you make, showing this to a landlord will almost always satisfy their proof of income requirements.
For contractors that don’t receive a W-2, the 1099 form that your clients send you is just as effective.
#2. Tax Return
Last year’s tax returns will likely suffice as a proof of income means. The more recently that you filed, the more likely that your landlord will be to except it.
In some cases, landlords and other parties that need income verification will ask to see 2-years worth of tax returns to ensure that your income has been relatively consistent.
#3. Offer Letter
For those of you that have just gotten a job but have not received a W-2 or other document that discloses your pay, your offer letter might be helpful in getting into a rental property.
An offer letter is a note that your employer sends you when they let you know that they’d like to employ you. In this letter, your proposed annual salary will be noted.
#4. Pay Stub
Most people that get paid receive a pay stub with their paychecks. Some states even require that employers use websites like www.paystubs.net to generate stubs for their employees.
Pay stubs keep track of how much money you’ve made cumulatively up to the point that your most recent paycheck was issued. That information should let your landlord deduce how much money you’re making.
#5. Bank Statements
Your bank statements serve as a means of communicating proof of income because they show employers how much you have in savings, how much money you deposit into your account and how frequently those deposits take place.
Sharing your bank statements may feel personal but if you have no other alternatives, it may be worth considering.
Proof of Income Is Easier to Come by Than You Think
We can’t tell you how many people we’ve seen start to worry when they’re asked for proof of income. Few of those people know just how many options they have when it comes to disclosing income information.
Talk to your prospective landlord before digging up documents because different people will find different income verification means acceptable.
For more information on all things money, keep browsing the content on our blog!