Decembere 12, 2022

Providing Proof Of Income To Rent A New Apartment In Abilene, TX

Are you planning to shift to a new apartment in Abilene, TX? If you are, you probably are excited about the prospects of your new home. At the same time, you might have heard about the need to provide your proof of income. Understandably, it can get confusing, so do not worry as we explore more about the need to prove your income before renting a new apartment.

Why is Proof of Income Necessary?

When searching for your perfect rental apartment in Abilene, TX, many landlords probably asked you for your proof of income. But why is it exactly necessary for a rental application? Why do landlords need to know how much you earn? Well, your proof of income can prove to your landlord that you are a trustworthy renter who will pay your rent consistently and reliably. In fact, unless you reside in a city with very high living costs (like Los Angeles or New York), your landlord will normally want you to earn more than three times your monthly rent.

That also means that rent should account for 30% of your yearly income. Normally, at least two documents proving your income are required, although this is ultimately up to your landlord.

Some places are harsher than others, but remember, this is only a precaution to prevent fraud. Providing these records may appear intrusive at times, but it will eventually benefit your budget. While some cities have greater costs of living than others, it's typically recommended to rent within 30 percent of one's salary.

Pay Slip

A pay slip, often known as a pay stub, is among the most commonly utilized proof of income. This works best if you have a steady income stream, and it is a record that you receive at the conclusion of a pay period that contains information such as the amount earned per hour, hours worked, insurance deductions, year-to-date earnings, as well as tax, and 401k deductions.

Typically, your landlord will want more than one pay slip to demonstrate a few months' wages, and they will normally require it to be accompanied by another verifiable document, as pay stubs are readily falsified.

Tax Return from the Previous Year

If you work on commission or do not have earnings that may be represented by a pay slip, opting for a tax return from the previous year may be a more viable option for proof of income. Also known as IRS Form 1040, it can show your landlord your tax return details and all of the money you made that year. Landlords use this as proof since it is the most accurate record of wages.

Statements from Banks

Alternatively, opting for statements from banks is another choice to prove your income. In particular, bank statements may be great for working renters since they may be used in conjunction with a pay slip or to represent salary for those who do not have the same monthly income.

A bank statement is a record of the balance, deposits, and withdrawals from your bank account. These provide your landlord with information on your spending income and patterns.