Showing proof of income is one of the most important steps when signing a lease. There is no landlord that will allow you to make a contract with them, or use their real estate if you cannot show that you are working and that you can pay your rent and bills on time. Looking for the right place to live is already stressful enough, and when you have to run around and look for ways to gather all the needed documentation can add so much to the pressure. If you are planning to rent a place, and if you want to know all of your options, then you’ve come to the right place. In this article, we are going to tell you more about the different ways renters can show proof of income to a landlord. Continue reading if you want to learn more about the use of the paystub, tax returns, bank statements, and much more.
Table of Contents
1. W-2
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The first option that you have if you want to show your landlord that you are employed, is to show the W-2 income statement. This is a document that every government issues for the people who have active employed status.
It is usually used for taxes, but it can also be used when you are trying to rent a new place. The best thing about it is that it is a legal document, but the negative side is that it is not always up to date, and you may need a lot of time to acquire it. Compared to other means, including a pay stub, you may need time to get this document, and some landlords will not accept it because it is not up to date.
2. Paystub
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Now let’s talk about the benefits of the paystub. With these documents, you can show all the details needed about your income and the money that you earn.
There are many different types of standard paystubs, and the best thing is that you can ask your employer to create this document for you for free. The free paystub maker can help your boss prepare this document for you, and they can add all the needed information about your paycheck.
According to Paystubsnow, with a paystub generator, every employer can create this document for their team, and the templates allow managers to just add the necessary information without wondering what they need to put in.
Note that the paystub is one of the preferred ways for many people to show proof of income because it is a legal document, it is easy to create, and all the information needed can be put in it.
3. Individual Income Tax Return
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The next option that you have is the IRS 1040, and many people say that this is their preferred method. It is a full document that provides any type of information that your landlord could possibly need, it is up to date, and it is a legal document.
There is no way for people to manipulate it, and it shows exactly how much money you are making including bonuses and promotions. The only negative side about it is that it may be challenging to acquire, and you may need to wait for a few days or even weeks for the IRS 1040 to be provided for you.
4. Bank statement
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The best thing about the bank statement review is that it is as current and as adjusted as a paystub. It shows all the latest information about your income, and you can ask for any information you prefer to be added.
The negative side of it is that it can show too much information about the tenant, things that the landlord does not need to see, and it can show a wrong image about the person. If you don’t have a traditional job, then you may need to explain to the real estate owner that your paycheck varies on commissions and other things.
Another negative side to this method is that you will have to physically go to the bank, unlike the remoteness you have with an online check stub creator, you cannot get a bank statement from the comfort of your home.
5. Proof of bonus
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Not everyone can acquire the proof of income document, and sometimes we don’t want to show the person who owns the real estate how much money are we actually making.
Documents like the bank statement, tax return, or the paystub always give out too many details about our cash flow, and if you want to avoid this, then you may want to consider the incentive payments documents or the proof of bonus.
The only negative side of this method is that you may have a hard time proving that it is a legal document, and your landlord may not be able to verify the information.
6. Annuity Statement
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The last thing we are going to talk about is the annuity statement. This document shows that you have a contract with an insurance company and that you are getting a steady stream of cash every month. This is a preferred method to many people because it really easy to verify, and just like the paystub, it can show a consistent income.
The negative side of this method is that there is too much information about the end date of the money that is coming into your account every month and that you need to pay close attention to the expiration date. If you don’t pay attention to the dates written on the document, your landlord may not accept this statement as valid.
As you can see, there are many different ways that you can show proof of your income. Other ways include a pension distribution statement, compensation letter, or even a letter from your employer. Currently, a paystub is the easiest way to show your proof of income and with a paystub generator, your employer can add all the necessary information about your paycheck.
Note that ultimately, it all depends on your free time and personal preferences. All of these methods show the different depths of information, so it is up to you to choose the one you prefer. No matter if you choose to provide a bank statement, tax return documents, or a paystub, at the end of the day, the most important thing is to find a good place for you to live in, and a landlord that is going to be there for anything that you may need.
