How to Create Pay Stubs for Apartment Without a Hitch
March 31, 2023
Submitting a pay stub for apartment hunting is considered one of the most legitimate ways to prove your income source and capacity to afford rent. Understandably, landlords and property owners are stricter when assessing potential new tenants.
If you are looking for a new residential place to stay, this article will show you how to use your current pay stub as proof of income for your rental application.
You will also discover other legal forms or documents that you can use to boost your chances of getting your application approved.
So, let’s dive straight into the action!
- Landlords seek proof of income from potential new tenants to attest that they can financially afford the proposed rental rates.
- Pay stubs contain an individual’s hourly rate, gross and net wage, contact information, address of their current employer, etc.
- An online pay stub generator is one of the easiest and most convenient ways to keep a consistent record of your pay stubs.
- Bank statements, W-2 Forms, retirement earnings, benefits verification letters, and offer letters can also be submitted as supplemental proof of income.
Why Do I Need Proof of Income?
These days, technology has made it easier for scammers to falsify documents and trick unsuspecting victims.
Your proof of income underscores your capability to pay for the unit, apartment, or residential space you want to rent. It is a reliable basis for landlords to determine whether you can afford the rental rates offered.
Landlords also use your proof of income or pay stub to ensure that the rent does not exceed at least 30% of your monthly income. This is a crucial detail for rental property owners because it enables them to avoid instances of notoriously late payments and unpaid rent.
By presenting authentic proof of income, you show that you are trustworthy and have no ties to any scams or suspicious activities that may revoke your rent application.
Why Use Pay Stub for Apartment Proof of Income?
One of the key elements found in a pay stub is your salary. Your salary or income is the determining factor that lets the landlord decide whether to grant your rental application.
Pay stubs also contain the following essential details:
- Employee and employer information(e.g., name, contact details, bank information, etc.)
- Gross and net wages
- Whether the applicant or tenant is currently employed
Unless you are self-employed, the information about your employer and the details about you as an employee indicate that you have a real source of income to afford rent. Your gross and net wages demonstrate your diligence as a taxpayer, a quality that landlords usually find favorable.
Landlords also require pay stubs from the last six months because it covers enough time to confirm a potential tenant’s employment status.
How to Get Pay Stubs for Apartment Easily
If you don’t want to create your pay stubs from scratch and waste your time, there are way more efficient and less time-consuming alternatives.
The easiest way to prepare pay stubs for an apartment is to use an online paystub generator. We offer a pay stub generator that allows you to create as many pay stubs as you need without worrying about missing out on any essential detail.
It’s super simple to use, and all you have to do is:
- Open our paystub generator.
- Add the necessary information in the blank boxes.
- Preview the paystub then save and download the document.
Once you’re done, you’ll get your pay stubs in no time and can then forward them to your landlord hassle-free.
Other Methods of Showing Proof of Income for a New Apartment
At times, the landlord may request that you submit other proofs of income aside from your pay stub. Here are additional documents you can use when applying for a new apartment:
#1. Bank Statements
Bank statements contain records of the money that goes in and out of your account, providing property owners with an idea of your current financial standing.
Use your bank statements if you are self-employed or do not receive salaries and payments as regularly as individuals employed by companies would. Since everyone has a unique setup for generating income, your bank statements can provide supplementary information and proof of your financial stability to pay for the apartment.
To be safe, prepare at least two to three months’ worth of bank statements.
#2. W-2 Forms
W-2 forms detail your income for the previous tax year. These documents make excellent supporting documents for your pay stubs.
While your W-2 form specifies your earnings for an entire year, it may not be enough to be used as proof of income, particularly if you recently switched jobs or opened a business. You may also be a freelancer who takes on multiple projects and has multiple sources of income.
As such, if you want to submit your W-2 form, it would be best to pair it with your most recent pay stubs to further validate your monetary resources.
#3. Letter of Employment
Scammers sometimes provide fake company names or include an employer’s name in their fake pay stubs despite not being employed by the firm, entity, or establishment.
A letter of employment certifies your occupational status. The landlord may need to verify that you are still employed by the company or employer whose name is indicated in your pay stub.
Securing an authentic letter of employment may take a while. Also, expect the landlord to try and contact your employer to ask for your character reference or clarify some details about your employment.
#4. Retirement Earnings
You can still provide proof of income even if you are retired. Your Social Security proof of income letter and Form 1099-R are documents you can submit to prove your income sources over the last couple of years.
The Social Security income letter, also called the Social Security award letter, acknowledges your application to receive benefits. It also informs you of your eligibility to claim the benefits you applied for.
You can fill out an online application for Social Security benefits. Form 1099-R reports your distributions for pensions, profit-sharing or retirement plans, charitable gift annuities, and individual retirement arrangements.
#5. New Company Offer Letters
If you have left your previous job and applied to a new company, the chances are there will be gaps in the sequence of your pay stubs. However, if you’ve recently received or negotiated an offer with a new company, the job offer letter could prove that you have a new source of income.
New company offer letters specify the nature of the work, the salary offer, and the job position that you applied for. Showing your landlord this letter as proof of income gives them an idea of your potential income and fitness to meet their proposed rental rates.
The offer letter must bear your signature and the signature of your new employer to verify that you got the job.
How to Show Proof of Income for Apartment for Unemployed
The following is a list of documents that you can use in place of your paycheck to aid in your apartment-hunting process:
#1. IRS Form 1099 R
The IRS Form 1099-R is useful for retirees looking to rent new residential space. It provides a detailed enumeration of the percentages withheld from your earnings to pay for federal income tax. At the same time, Form 1099-R specifies all the benefits you have paid, including retirement plans, annuities, and pensions.
#2. Social Security Proof of Income Letter
A Social Security Proof of Income Letter certifies you are consistently receiving Medicare or Social Security benefits. Alternatively called a “benefits letter,” it also proves you receive Supplemental Security Income.
Head to the Social Security Administration (SSA) website to request a benefits letter or contact their hotline by dialing 1-800-772-1213 (TTY 1-800-325-0778).
#3. Unemployment Compensation Letter
You can apply for assistance programs while unemployed by requesting an unemployment compensation letter from your former employer. This letter attests to your unemployment and helps prove to agencies that you are entitled to receive support or benefits through social services.
The benefits you receive with the help of the unemployment compensation letter serve as your temporary source of income while you seek a new job opportunity.
#4. Dividend Income and Interest
If you lend money and earn interest from loans or generate income through sharing stocks, then you can use your dividend income and interest instead of a regular paycheck as proof of income. Additionally, dividends and interest are passive income that can offer temporary financial resources while you are unemployed.
#5. Compensation Letter
A company or new employer issues a compensation letter. It contains a comprehensive explanation of the corresponding salary, benefits, hourly rate, and job done. The compensation letter is useful if you are unemployed yet actively looking for new job opportunities or sources of income to afford your rent.
#6. Annuity Statement
An annuity statement details the performance of your annuity over a specific length of time. You can secure an annuity statement from your annuity company. This document gives you insight into how much money you have in your account and the amount of dividends or interest you have earned in a year.
Securing your proof of income while you are searching for a new apartment or living space effectively increases the possibility of getting your rental application approved.
Alternatively, you can check other documents that you can use to supplement or replace your pay stub for an apartment if you are unemployed, retired, or have a unique work setup that enables you to generate income from multiple sources.