When screening prospective tenants it is important to verify their income. You need to ensure that your tenants have enough money to rent your place once expenses and debt are subtracted from their income. As a landlord, you need to know that the people renting from you have the money to pay for the unit. If they don’t have the sufficient funds then you end up hurting yourself in the end. Here are ways that you can verify income from tenants.
If a tenant does not have a regular job but does have the money for rent, their last few bank statements may be able to prove this. Some tenants may find this an invasion of privacy but you can ask for a record of the deposits or withdrawals from the account to determine if they can afford the rent.
Tenants displaying their pay stubs is a very common proof of income. The pro of using pay stubs to prove income is that they are current and easy for the tenant to show if they have a traditional job.
Tax returns are another typical proof of income because they are very comprehensive. This will detail all of their income and give you the best idea of their ability to afford rent.
T-4 or W-2
A T-4 is the Canadian equivalent of a W-2 form which is supplied by your employer. Not all prospective tenants will have this form on them at all times but you can confirm their employment is still valid.
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