How We Verify Income: A Guide to Providing Income Verification

One of the key steps of the application process is verifying a prospective resident’s income. Verifying income ensures that an applicant meets our income requirements and is able to afford the apartment. Knowing which documents to supply to verify your income helps to make the application process run smoothly and to cut down on delays.

Methods of Income Verification

Pay Stubs: One of the most common methods for verifying income is to provide pay stubs. Pay stubs typically provide a detailed breakdown of an employee’s gross and net income, along with deductions for taxes, insurance, and other benefits.

Pay stubs should ideally cover the last 30 days of employment. Property managers will look for consistency in the income amount and verify that the applicant’s stated income matches what’s listed on the pay stub.

Bank Statements: Requesting recent bank statements is another reliable method for verifying income. Bank statements show deposits made to the applicant's account, providing evidence of incoming funds, whether from wages, business income, or other sources.

A consistent pattern of deposits that matches the income claimed on the rental application is a good indicator of financial stability. Applicants should provide at least two to three months of bank statements to get a clear picture and should always black out any account numbers prior to submitting statements.

Tax Returns: For applicants with non-traditional employment (such as freelancers, self-employed individuals, or those with multiple part-time jobs), tax returns can be a valuable tool for income verification. Tax returns provide a comprehensive record of income over the past year or more.

Applicants will typically submit the most recent year’s tax return (1040 form in the U.S.) to verify reported income that is not shown through paystubs or employer verification. They will look for consistency between the reported income and what was stated on the rental application. Applicants should always black out social security number(s) prior to submitting tax documents.

Employment Verification Letters: An employment verification letter from the applicant’s employer is another solid method of verifying income. The letter should include details such as the applicant’s position, length of employment, salary, and frequency of payments (i.e., weekly, bi-weekly, monthly).

The letter should be on company letterhead, signed by a company representative, and include clear and specific details about the applicant’s role and compensation.

Direct Communication with Employers: Sometimes, property managers go a step further and directly contact the applicant’s employer to verify the details provided. This can help ensure that the employment letter or pay stub provided by the applicant is legitimate.

The employer should be able to confirm the applicant's position, salary, and length of employment. A phone call or email to a direct supervisor or HR department is often the most reliable way to verify employment.

Providing accurate and sufficient documents showing proof of income is one of the best ways an applicant can speed up the application process. By having these documents on hand, a prospective renter can be prepared to take on the income verification process.