How Can You Verify the Income and Employment History of an Applicant?
Besides checking the credit history of a prospective tenant, another effective way to assess the likelihood of on time payments is to examine their income status and employment history. If an applicant has enough available financial resources each month, then you can be confident they will be able to comply with the lease agreement.
First, you should know what your applicant does for work. In order to assess your prospective tenant’s income, you could ask for the following documents:
A certified copy of the offer letter or employment contract from their current employer
A verified statement from the applicant’s employer referring to their job and current salary
Copies of their primary, active contracts if they work freelance
In addition to verifying their employment, you could also check the status of their savings and investment accounts to have a better idea of their current financial situation. However, be wary of the fact that statements from these accounts can be easily forged. Similarly, you can also check your applicant’s tax return documents.
Another important factor to consider is job stability. How long have they been in their current job? If unemployed, do they have the potential to find a new job quickly? It’s always desirable to find applicants with a solid career path and prospects.
None of these factors is sufficient on its own for reaching a conclusion regarding your applicant. For a comprehensive picture, consider both employment and credit history.
- What Is a Rental Application Form?
- Should You Use a Rental Application Form in the Tenant Screening Process?
- What Information Can You Find in an Applicant’s Credit Report?
- Where Can You Get an Applicant’s Credit Report?
- What Should You Look for in an Applicant’s Credit Report?
- Can You Refuse an Applicant Based on a Poor Credit Report?
- Can You Require Applicants to Pay an Application-Screening Fee?