Proof of Income in the Gig Economy

As a landlord, one of the most important steps of the tenant screening process is verifying proof of income. If you have a set income requirement or another guideline, like income that is three times the cost of rent, you will have to ensure that all applicants who you approve have met that. However, proof of income can be more complex thanks to the growing gig economy. Tenants often have multiple sources of income or income from contractor positions. How can you determine if they are financially fit?

How to Get Proof of Income in the Gig Economy

  1. Pay Stubs: If your tenant has a part-time or full-time job, a pay stub will be relatively easy to obtain. As a rule of thumb, you should request at least two months of pay stubs to get an idea of how much they are paid, how often they are paid and what their net income is after paycheck deductions like retirement or healthcare.
  2. Bank Statements: One of the best ways to verify proof of income when someone has multiple sources of income (Lyft, Uber, DoorDash, etc.) is by requesting bank statements. Bank statements for two to three months can help you to get an idea of their average income across months and whether or not there are steep highs and low lows in between. Sometimes, gig economy jobs can lead to fluctuations in income that might make things too unsteady for your rental situation.
  3. W-2 or Tax Returns: Another way to check income for someone with multiple streams of income is a W-2 form or tax returns. These will show you precisely how much money the person made over the course of the year, and they will help you feel confident in your decision. This proof of income document is the same thing that the government gets, so you can rest assured that it is the most accurate evidence available.

All County Denver South Property Management Can Help Verify Proof of Income

All County Denver South Property Management is here to help property owners get the best return on their investment through knowledgeable and trustworthy property management services. From managing tenant relationships to lease enforcement, we look forward to working with you to see how your rental property investment can be a long-term, stress-free asset. We work with landlords throughout Lakewood, Englewood, South Denver, Greenwood Village, Highlands Ranch, Ken Caryl and Aurora. For a complimentary quote, call us today at (720) 664-4550.

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