A document that is used to illustrate that a tenant has a steady salary and will be in a position to afford rent is known as a proof of income. 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. With Proof of income, the chances of evicting tenants that are unable to pay house rent will be minimal. 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. You will thus be in a position to determine if the renter will meet the income requirements by calculating the rent to income to 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. One of the benefits of a bank statement is that it can be used by 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.
Proof of income letter can also be used by the renter as Proof of income. A proof of income letter, therefore, is useful since it discloses the amount of money that an employee makes. Therefore, with the Proof of income letter you can be in a position to calculate the rent a tenant will afford monthly.
A proof of income can also be illustrated using a paystub. Therefore, with a paystub you will be in a position to assess if the renter’s income will fluctuate from month to 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.
A letter from an employer can also act as Proof of income. One of the advantages of a letter from an employer is that it is easy to get. You should avoid choosing a tenant that provides incorrect salary information. Saving time and money will be possible if you verify the letter from an employer-provided by a tenant.