How to Prove your Can Pay Rent
Given the troubles that landlords go through dealing with tenants who refuse to pay rent, you can understand their reservations about letting just anyone into their property which is why they need proof of your ability to pay rent now! The general consensus is that a tenant should only be able to rent a property if his or her rent is three times the monthly rate as shown here. You have to assure a potential landlord of your financial health by providing these financial documents. You will learn more on the proof of income examples listed below.
Before renting a property or when you are looking at potential properties, ensure to bring along your Pay Stub which you can obtain online or from your employee regardless of full or part-time status. There are software resources that will allow you to create paper check stubs when you require a physical copy but it is not always necessary since most things are going digital but bring your Pay Stubs is necessary when hunting for a house.
Tax returns is the second document on this list and one that is highly reliable proof of income; with this, your potential landlord can view your yearly income to gauge whether you can pay the rent for the property or not. The tax returns is especially important for independent contractors or freelancers who may want to rent a property but do not receive the weekly paycheck; it helps in providing an accurate record of your income for those requiring it.
The next on the list of these documents is your bank statement; this enables you to provide a detailed record of your income as well as many other business interactions; it shows all incoming and outgoing transactions. Compared to the other documents, bank statements come with the risk of some transactions being misidentified. You can also get a letter from your employer, confirming current employment and the level of income that has been mentioned.
Social security documents usually come in handy if you are looking to rent a property but you live on payments from the government; they are applicable forms of income and the documents recording the payments you receive are valid proof of income. If you maintain proper bookkeeping and you are self-employed, collecting documents like 1099 form from the IRS and the ledger documents you need to prove your worth will be less sophisticated and time-consuming. These are some of the documents you need to prove your financial health to a potential landlord.