Proof of income When a rental property is accepting tenant applications, there are common requirements that landlords and property managers take to check the boxes throughout the process.  Often these include background checks, credit checks, job verification, and proof of income. Can someone rent a property without a paystub?

What happens when your tenant cannot produce a recent pay stub?

Obviously, proof of income is very important, but equally as important is due diligence on that proof!  Unfortunately, we cannot always take the potential tenant’s word when it comes to income.  However, if the tenant is unable to provide proof of income through pay stubs, that is not end of the world.

Small Business Owners

Small business owners might not take a “pay check” from their business, but they could utilize their business account to subsidize their income.  When existing tenants of mine applied to my units, they provided their business. In this case, it was a cross fit gym with bank statements to show proof that they were taking in a form of income.  It also allows you to see how healthy their business truly is. If their business goes south, then so does the likelihood of on-time rent payments. There are many entrepreneurs out there today who utilize payment technology like Venmo or PayPal for their fee collections.  You can have them provide their Venmo reports to show they are indeed receiving a form of income directly.

Non-W2 Income and other sources

Perhaps the potential tenant does not have a job, for whatever reason.  They might have other forms of income through passive income, inheritance, or financial aid.  As a real estate investor, you too might be living off your passive income of rental properties that are not documented through a W-2.  Even more, tenants with wealthy family members can receive dividends through a family trust.  Often the case with college student tenants, their income could come through financial aid that is paid in large chunks a few times throughout the year.   Proof of income without pay stub

Can you rent to a tenant without a pay stub?

At the end of the day, having proof of income through a pay stub isn’t the only solution to proving income.  What is most important is the due diligence on your end to determine if they are qualified.  That might require calling their employer and past landlords. You may have to do this for their co-signer(s) as well.  Lack of pay stubs isn’t end of the world and should not stop you from accepting tenants that meet all other requirements.