Proof of Income
Importance of Proof of Income for Rental Approval
Proof of income will be a major component in your approval on a rental property. After all, any person or leasing office will want to see exactly HOW you are going to pay their monthly rent. The industry standard is that you must gross (before taxes and deductions) 3x what they are asking for the price of rent but some will only require 2.5x times the monthly rent. Example: rent is $1000. Therefore, you must be able to PROVE you gross $3000 in monthly income. The following are acceptable forms of proof: pay stubs, tax returns (1099 for self-employed), an offer letter on company letterhead stating your hourly rate and how many hours you will be working per week or annual salary, bank statements that show a balance equal to 6 months worth of rent. For business owners, my suggestion is that you begin paying yourself a monthly or bi-monthly check out of the profits. Remember property owners think that entrepreneurs or those in commission only positions are risky tenants so be prepared to go the extra mile when you are required to prove your income.
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