Are you verifying proof of income when screening new tenants?

If you own rental properties in Miami, or the surrounding areas, one of the most important things you can do as a landlord is check an applicant’s proof of income. Why? Following through with checking proof of income will save you the time, money and hassle of renting to someone who may suddenly not be able to afford paying their rent.

Verifying proof of income will also save you the hassle of having to evict a tenant which can amount to $500 or more depending on your location and the tenant that you’re evicting.

Regardless if you’re new to owning rental properties, or you’ve owned them for years, this article will provide you with several tips on how to verify proof of income.

Do They Meet The 3x Rule?

The first thing to do when checking a potential tenant’s income is to verify that they meet the 3x rule. This means that they must earn three times the amount of rent that you are asking for your rental property.

One important thing to consider in 2019 is that many people will have alternate forms of income other than the money that they earn from their jobs so it’s important to take all income into consideration.

Some of the other forms of income that you may see include income from commission-based jobs, affiliate income earned from the Internet, side income from selling items of Craigslist or eBay and come earned from providing services to local businesses.

To verify all income, you should ask to see recent bank statements and a potential tenants income tax returns from the previous year just so you can confirm that they really do earn the income that they claim to earn on their application.

What If You Like Them but They Still Don’t Earn Enough Income?

Let’s say that you’ve found a potential tenant that you feel would be a great fit to live in your rental property but they still don’t meet your income requirements. In this case, you could ask them if they would be willing to sign their lease with a co-signer because some tenants may be open to this arrangement especially if it enables them to get into the rental that they really want.

Learn More

To learn more income verification tips, or to speak with us about our property management services, contact us today at (305) 428-3904 or click here to connect with us online.

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