How landlords verify income
Which documents to ask for, what to check, and how to confirm income with the source.Which documents to ask for, what to check on each one, and how to confirm income with the source instead of trusting the paper.
What landlords ask for
Most landlords ask for a few documents that show the same income from different angles. Two that come from different sources are much harder to fake than one:
- Recent pay stubs, usually the last two or three.
- Bank statements for the last two or three months, showing the paychecks arriving.
- A W-2 for last year, or IRS tax return transcripts.
- An employment verification letter or offer letter, especially for a new job.
- For self-employed applicants: Forms 1099-NEC, tax return transcripts and bank statements.
Decide what you ask for before you list the unit, and ask every applicant for the same documents in the same way, in line with the Fair Housing Act and the rules where your property is.
Check each document
Every document carries numbers that have to agree with each other. On a pay stub, gross pay minus all deductions equals net pay, and Social Security and Medicare are fixed percentages of the same wages. On a bank statement, the beginning balance plus deposits minus withdrawals equals the ending balance.
Then check the documents against each other: the net pay on the stub should arrive in the bank account within a day or two of the pay date, the employer's name should match across the stub, the W-2 and the letter, and last year's W-2 wages should be in line with the year-to-date pay on the stubs.
Confirm with the source
- Employer: find the main number on the company's official website, not on the stub or letter, and ask HR to confirm employment and the pay for a specific pay date.
- Bank: ask the applicant to download the statement from online banking while you watch, or to show the account in the bank's app.
- IRS: applicants can view their own tax transcripts in their IRS online account, or have them mailed (the IRS says that takes 5 to 10 days).
When something doesn't add up
A number that doesn't fit is a reason to ask a question, not proof of fraud: payroll corrections, a recent raise or a second job can all explain a gap. Ask the applicant about it, confirm with the source, and apply the same steps to everyone who reaches this stage.
StubSure runs these checks on the files themselves, the numbers and how the documents line up, and tells you what to verify with the source.