Before you pack your boxes and fill the U-Haul truck, there are a few things your new property manager must approve during your application process. One of those is your proof of income or, in other words, something that shows you make the amount of money you claim you make. Finding a way to prove your income and financial stability can present a challenge, especially for those with nontraditional income streams. Here are some topics and methods we cover in this article to help you organize your documents and provide proof of income:
- The easiest way to show proof of income
- How to show proof of income without pay stubs
- How to prove your income if you’re unemployed
- How to prove your income if you’re self-employed
The easiest way to show proof of income
Pay stubs are one of the most common ways to show proof of income for an apartment. If you still receive pay stubs the old-fashioned way, make copies and submit them to your potential property manager. If you’ve gone green and received direct deposits from your employer, contact your Human Resources department and ask where you can obtain pay stubs. You can easily print documents stored in a management system like ADP or Workday. Ensure that your submitted documents reflect your current pay rate and employment status. When possible, provide multiple recent pay stubs to verify your employment and earnings.
However, not everyone has traditional pay stubs, so we’ve put together a few ways of showing proof of income without them:
How to show proof of income without pay stubs
- Worker’s compensation
- Federal tax return
- W2 income statement
- 1099
- Social security statement
- Proof of income letter
- Severance statement
- Court ordered agreement
- Unemployment statements
- Disability insurance
1. Worker’s compensation
If you experienced an injury on the job and are receiving worker’s comp, you can still show proof of income. Simply submit to your future landlord a letter issued by either your insurance company or the court that proves they’ve awarded you the compensation that can act as a consistent income. Providing these documents shows your employment and ability to pay for rent and other expenses. A worker’s compensation letter can also help verify your employment status and your ability to return to your job after your recovery.
2. Federal tax return
Your IRS 1040 document can show proof of income for an apartment application. It provides a comprehensive view of your income earned within a year and can simplify the process for those with multiple jobs or jobs that started or stopped within a tax year. The property manager can gather and verify your earnings, employer, and financial health with the use of a tax return report. Providing all your information from the past year allows for a better overview of your income and can help you get approved for a rental agreement.
3. W-2 income statement
Every year, you receive a W-2 income statement from your employer to aid with filing taxes and tracking your income. If you use an online, self-serve tax system, you can access your W-2 within that system. Log in, open the document, and print or send an electronic version of it to the property manager. A W-2 adds credibility to your income statements and can help verify your employment status and earnings. If you have multiple employers and incomes, provide the W-2 for each individual employer.
4. 1099 – miscellaneous income statement
For the self-employed folks, this is the best option for how to show proof of income without paystubs. The 1099 tax form shows your future property manager that, while you don’t have a traditional employer, you’re a responsible, self-employed individual who has an income. The tax form alone should suffice as proof of income and your ability to provide rent payments. This document summarizes and organizes information for self-employed individuals with multiple revenue streams and profit margins and can help the property manager evaluate your financial status.
5. Social security statement
If you receive social security benefits and aren’t currently working, your statement documents work as proof of income for an apartment. Property owners can use the amounts provided on your social security statements to evaluate how you meet the income requirements for the rental agreement. You can download your social security statement here for easy access or to send it to the property manager.
6. Proof of income letter
A letter from your employer confirming your salary and employment is a great way to show proof of income for an apartment. Individuals looking to expedite the process can use our proof of income letter template. Fill in your information and ask your employer to sign off. It’s easier for your employer to sign off on something that’s already completed rather than typing it up themselves, so you can probably submit the letter to the property owner within a day.
7. Severance statement
Although it’s unfortunate, even if you’ve experienced a layoff, you can still prove your “income” through your severance package statement. Make it clear to the potential landlord that you’ll be seeking a new job and will make monthly rent payments even when your severance has run out. Guaranteeing that you can make on-time, consistent payments will help when the potential property manager is considering your application. While severance doesn’t provide a long-term income, it can show short-term funds coming into your account while you look for another income method.
8. Court ordered agreement
You can use any paperwork related to court agreements that show your ability to receive alimony, spousal support, or another form of payment to show income for a rental application. If you’re unsure about where to obtain this information, reach out to your local courthouse and they should be able to pull any paperwork for you with proper identification. Property managers accept proof of alimony payments or other support as an adequate verification of income.
9. Unemployment statements
Unemployment benefits can prove your monthly income. Contact your state’s government agency and request an award letter. The letter will prove your monthly allotment so your future property manager will know you have money coming in and can maintain rent payments. While unemployment benefits are a reliable proof of income when renting an apartment, they’re usually not a long term form of income. Be prepared to have a backup plan should your landlord request additional documentation of steady income.
10. Disability insurance
Unlike worker’s compensation, disability insurance is for injuries or illnesses that occur outside of the workplace. If you cannot work because of an injury, provide a letter from your insurance company to the property manager. Disability insurance can last days, weeks, or years depending on the claim, so if yours is set to expire during your lease, make sure you have additional income streams for paying the rent.
How to show proof of income when unemployed
Many of the options and methods listed above can help you show proof of your income and financial abilities when you’re unemployed. Property managers often accept unemployment statements, bank statements, and alternative support payments that display your ability to provide consistent rent payments. If you recently became unemployed and receive severance payments, you can also provide documentation of your severance package and amounts to show your ability to uphold the rental agreement while looking for a new job.
How to show proof of income when self-employed
When you earn income as a self-employed professional, you don’t receive common documentation such as pay stubs or income statements. In this case, you can use other official paperwork, such as a 1099 Tax Form and a professional account bank statement. These offer the property manager the ability to view your total profits, income schedule, and financing qualifications.
Why proof of income matters
It’s best to budget approximately 30 percent of your income for rent, so it’s in your and the property manager’s best interest to ensure you’re able to make the monthly payments. It means you won’t be stretched too thin by expenses, and your property manager has a reliable renter. Keep in mind proof of income is only one part of the application process. There are potentially background checks and interviews to consider when applying for an apartment.
Overall, giving your property manager peace of mind is important to building a strong landlord-resident relationship. Proving your income is a great start, and these ways will help you verify your income without question. Once you provide proof of income for an apartment, fill out all necessary paperwork, and pay your security deposit, you should be all set to be approved for your new space.
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