A proof of income is a way to illustrate that a prospective tenant has a steady job and thus will afford to pay house rent. The Proof of income is used to gauge if the tenant can pay rent always. Therefore, the Proof of income gives a clear understanding of the tenant’s finances. Thus, a proof of income saves the landlord the hassles of evicting the tenant when unable to pay house rent. Therefore, since there are many forms of income, it will result to many types of Proof of income.
However, as a landlord you should be well aware of what to look for in the documents provided by the tenant. A landlord will be in a position to select the best tenants for their rental property using a proof of income. It will be easier to determine if the renter meets the income requirements by using the rent to income ratio. Thus, below are some of the documents the landlord can request from their renters.
Bank statement is essential since it can be used as Proof of income. A bank statement plays a great role for tenants that do not have a traditional source of income. A bank statement comes in handy, especially for renters that are self-employed. You should consider acquiring a ban statement that ranges from the past two or three months before when planning to use it as a proof of income.
A proof of income letter is another document that can be used as a proof of income. A proof of income letter, therefore, is useful since it discloses the amount of money that an employee makes. Using the rent calculator, you can be in a position to calculate the amount a tenant can comfortably pay in a month.
A paystub can also come in handy since it can also play as a proof of income. A paystub can be used to gauge if the renter’s income is constant each month. You will be in a position to determine how often the renter is paid by using a paystub. A paystub will also provide leads to the net and gross salary of a renter.
Proof of income can also be in the form of a letter from an employer. A letter from an employer will be ideal as Proof of income since it is easy to get. However, as a landlord you should beware if a tenant provides false reference concerning their income information. Verification of the letter from the employer is vital before choosing a tenant so as to save time and money.