Registered: 1472494503 Posts: 441
Reply with quote #1
How thoroughly do you guys actually check someone's income? I assume we all at least ask what their monthly income is, but are any of you calling employers, requiring pay stubs, or what?
Registered: 1434143319 Posts: 29
Reply with quote #2
Renting to someone who can't afford the rent will obviously be your main problem later on. In a way, you are extending credit to someone. So, like any institution that extends credit, verifying income is very important. Yes, you want copies of the last 2 - 4 paystubs, and/ or other documents like disability payment statements, etc. I usually don't call to verify unless something seems fishy, or its a unique situation. If you do call, contact the company/ entity using the known main number, not the one on the document you received. Do look for patterns of unemployment/ no income/ difficult to prove income, which should have very good and reasonable explanations.
Registered: 1487987694 Posts: 137
Reply with quote #3
I'm usually comfortable with the last 1 or 2 month's of pay stubs. That along with the credit report, background/eviction check and the last two landlord references is all I usually need.
I've accepted letters of employment for people who are new to their job and then I've verified with the HR department but otherwise I don't check with the employer unless something seems out of place. __________________ AccidentalRental - A profitable resource for new landlords
Registered: 1455139874 Posts: 12
Reply with quote #4
I require the following for income verification:
For someone who is self employed, you want to see consistency over time, which is why I ask for multiple pay stubs. Employed with 3rd party: One pay stub and/or W2 form Self-employed: Two to three pay stubs and/or W2 form I also require the following information from the employment side: I require employment for the past two employers and call them to verify. Dates of employment Employer Title Manager's name Manager's contact information States annual gross income Additional income Also, I use Hemlane to get the applications, pay stubs uploaded, and verification on the qualifications of the tenants. __________________ Jordan
Registered: 1534582926 Posts: 4
Reply with quote #5
You can always hire a professional property management company, which will give a full detailed information about your tenants.
__________________ editor and director of marketing for gkhouses
Registered: 1169270040 Posts: 3,794
Reply with quote #6
Self employed people rarely have pay stubs since they pay themselves. They don't get w-2s, they may get 1099s as independent contractors. W-2s come from companies. Self-employed: Two to three pay stubs and/or W2 form??? Instead, ask for last year's tax return for self-employed people. That will let you see what they made for the last 12 months.