In the United States, the trend for individuals and couples being self-employed is on the rise. According to the Bureau of Labor And Statistics, people that were self-employed, or had “non-traditional” jobs, rose from 10.1 percent in 2005, to 15.8% by the end of 2015. That’s a pretty hefty increase.
Why is this trend happening? Much of it has to do with the ability for people to sell their products and services easier as internet usage increases and becomes more a part of our daily lives. No longer do people necessarily need to go work for a company and sit in a cubicle to do the work they can do from home, and subcontract their labor to whatever company will hire them.
Moving Soon? Get quality cardboard moving boxes for less! – Click Here – Fast and Free Shipping!But what happens when you need to rent an apartment? You need proof of income, and if you are self-employed, this can be tough to show.
So, what do you do?
How Do you Show Proof Of Income For An Apartment?
The first thing you are going to want to do is to prove to the landlord that you do in fact, have income. And there are several ways you can do that.
Bring them your bank statements when you go in for the interview. Only about 6 months are probably necessary, and you don’t need to show them every line item on there, just have the balance of your account at month’s end for the last 6 to 8 months or so, and that should suffice. The only reason they check income in the first place, like banks or car dealerships or mortgage companies, is that they want to know if you can really afford the product or service they are providing.
Next, you will want to show them your taxes. Because you are self-employed, it isn’t as easy as just bringing in your pay stubs from your employer and showing them how much you make. You are going to need your Form 1040 from the IRS. This is going to show the landlord your gross and your net income for the year.
Make sure to explain to him, because you are self-employed to make sure to note the “Gross” revenue as the key figure. You are no doubt going to write off as much income as you can to avoid paying any more taxes than you must but letting them see how much money you actually brought in is going to give them some peace of mind.
Now, keep in mind that if you have a net income that is negative for three years running, that is probably not going to help your situation either. Make sure, to be honest with them about how much you make, and what you can afford. Because in the end, you are the one that is going to be on the hook for paying for the apartment. Lying is going to hurt you more than them.
Next, show them a receipt from your customers. Showing proof that you are in fact, getting income in is crucial to convincing them to rent to you without traditional proof of income. Whether you have a hundred customers that you keep all in a database or just a couple big customers who you send invoices to, show them the proof of these invoices so they know that you are legitimate.
Show Them The Money. If you are willing to give your landlord a 2-3 month’s rent right up front, on top of the security deposit, the landlord is going to know that not only are you serious about renting the unit from them, but you have the money on had to back it up. Paying for more than one month’s rent also lowers their risk considerably as a good portion of the lease contract was just paid upfront.
If you are going to show the landlord your bank statement, bring a couple of month’s rent with you when you come to do the interview. There is nothing that speaks louder than cash, and if you can show him that you are a legitimate self-employed business owner who just works for themselves, more than likely, you are going to get that apartment.
Can You Fake Pay Stubs For An Apartment?
The answer to the question is: Yes.
Is it legal? The answer to this question is: No.
Why do people fake check stubs? A couple of reasons. The first is that they really don’t have the income that they want to claim they do. Different people have different morals and ethical codes, and therefore can be inclined to act differently than what you would like to see. But it does happen.
There are many places online that will create these fake pay stubs for someone for this very reason. Often times, these people are trying to secure a loan from a bank or purchase a car or house. But if the lending agency finds out that the person is faking their income by using fake pay stubs, they are going to get in hefty trouble and be facing a ton of fines. Not including probably not being able to secure a loan or even an apartment lease for a very long time.
The second reason people create fake pay stubs is for the very reason for renting an apartment. If they are just starting out or have a job that is self-employed it may seem attractive to them to just create fake pay stubs so the landlord will rent to them easier. They think, “If I am making the money, what does it really matter?”
The problem with this is that if your self-employment income dries up, you may be in a world of hurt. Your landlord can evict you and sue you for the rest of the time on your rent because you lied to them on your application. They can report you to the credit agency, and if your next landlord calls you to ask why you left, it is going to be very hard to rent again.
This is completely unnecessary to do. Simply go through the steps we have above and the suggestions we have below that will make renting an apartment when you’re self-employed less of a hassle than you think.
Do Apartments Check Pay Stubs?
Yes, they do check pay stubs.
If an apartment complex has an application procedure that runs you through a credit check and a background check, they are almost assuredly going to take the step to verify the rest of the information that comes with you. That shows you that they are as serious about finding good tenants as you are about renting a good apartment.
Instead of going through the illegal and unethical process of faking your income, and potentially putting yourself in an even worse situation, just follow the steps we have outlined, and you will be fine!
How Can I Get An Apartment Without Proof Of Income?
Above, we listed some of the things that you want to do to show that you have income or at least money in the bank. Those things include:
- Bank Statements
- Tax Returns
- Customer Receipts
- Cash
But there are other things that you can do that as well is going to increase your chance to secure an apartment……
Have your previous landlord write you a reference. This can go a long way in verifying your credibility. Wherever you just came from, unless it was your parent’s house, get that person to write you a referral letter on the way out to your new landlord. As long as you were a good tenant, this is going to be no problem at all, and they will be more than happy to do it for you.
Also, landlords respect the word of other landlords and managers. They know that the next time, the situation may be reversed, and they are the ones wanting the referral for the prospective renter. Landlords tend to place the word of other landlords highly when considering renting to a new applicant.
Look For A Smaller Complex. While a smaller complex is going to be less likely to have massive pools and recreation huts and grills around every corner, they are also going to be less likely to be owned by a national company.
Apartment complexes that are owned by big companies have leasing rules that tend to be less flexible. They are looking for those tenants that check all the boxes they have in the application process. And they are so big, that if you don’t happen to tic all those marks, they have dozens of applicants behind you that probably do. The unfortunate thing is you may actually be more qualified than some of the other applicants that just have a W-2 to be able to show.
So, to get around this problem, look for someplace smaller. That doesn’t mean the actual apartment itself has to be smaller, but just a small number of units in the complex. You are going to have a much easier time talking to the landlord in person, showing them your situation, your current work, your living history, and why you want to rent from them.
After all, the landlord himself is going to be a self-employed individual and there is a 100% chance that they themselves have run into this very issue when going into the bank to get a loan, or when they are purchasing a car. They are going to understand exactly the situation you are in and the hoops you have to go through just to rent an apartment. Thus, they are going to be more likely to understand your situation. Try to find someplace smaller and you will undoubtedly have better luck.
Have Someone Co-Sign On Your Lease. If you are making money, one of your close friends or a relative or maybe even a parent will be willing to sign on your lease with you. They know that you are making money and supporting yourself and realize that it can be hard being a self-employed individual when it comes to securing loans and renting apartments.
Simply ask them if they would be willing to sign the lease agreement with you. This gives the landlord more security to rent to you considering you have “non-traditional” pay.
Have A Great In-Person Interview. When you schedule an appointment to come look at an apartment, and the manager or landlord goes over all the supporting documentation you must have in order to qualify you as a renter, make sure to have a good interview. Be polite, courteous, attentive, and look them in the eyes when talking to them. Show them that you are professional and 100% serious about renting the apartment.
Not enough can be said about how much a First Impression can make. Be sure to make yours the best it can be! Dress sharp, have a smile, and nail the interview!
Simply because you are self-employed doesn’t mean that renting an apartment needs to be such as hassle. The questions that apartment complexes ask are because the vast majority of people are employed and not self-employed. That number is rapidly changing though, and in the future, the process for applications may change across the board.
Until then, show your income in any way you can, bring them bank statements, tax returns, and even straight cash. Remember, landlords, are only checking these things because they want to know if you can pay. If you bring them cash for a couple of month’s rent, that question is quickly answered.
Have someone cosign for you if you need to. Many times, this simple solution is what can clear that final hurdle with the landlord. Again, you are trying to show the landlord why you are a good risk to take. Having someone else stand behind you says that they think you are a good risk to take and the landlord is going to be much more conducive to renting to you.
Finally, make sure to have a great interview with the landlord when you go to see them in person. Make the best first impression you can, answer all of their questions honestly, and above all, be professional!
