For Rent in San Diego – How to Verify a Tenants Financial Stability
By Utopia Property Management
Do you have property for rent in San Diego and are wondering how you check to see if a tenant is financially stable or not? You’ve come to the right place!
In this article, we will provide you with a list of documents you can request for verifying a potential tenant’s financial stability.
Request Copies of Their Paystubs
All employer paystubs will have a tenant’s pay begin and end date so you can easily figure out their income on a weekly, monthly, and annual basis.
After requesting copies of their pay stubs, you should also contact the employer personally, before deciding to rent your property for rent in San Diego to them because their paycheck stubs will show you if they really are earning the income they claim to earn or not.
To get copies of their paycheck stubs you must issue an employment verification request to confirm that the person who wants to rent your property actually still works there and continues to earn the income shown on their paycheck stubs.
Ask for W2’s
Asking a prospective tenant to provide copies of their W2’s is especially helpful because it will show you how much income they have declared in the last year.
W2’s is also especially handy for verifying income if someone is self-employed.
Request Bank Statements
Besides asking for a prospective tenant’s paystubs, and W2’s, you should also be asking for their bank statements as well. They should be able to provide you with statements from at least the last two to three months.
File Form 4506 With the Internal Revenue Service
Another great way to verify a tenant’s financial stability, before renting your property for rent in San Diego to them, is to file form 4506 with the IRS.
This form will give you the ability to see a copy of a potential tenant’s tax returns if they are not able to provide you with a copy of their return themselves.
Run A Credit Check
Besides following all of the tips offered in this blog post, the last thing that you should do is run a credit check. This will give you the ability to learn a tenant’s credit score, amount of debt that they may have, and give you a good idea if they’ve been able to fulfill their financial obligations.
Market Your Property for Rent in San Diego
Tired of managing your rental property for rent in San Diego yourself? Contact Utopia Property Management today for professional property management services. You may also call us at (858) 598-1111 or click here to connect with us online.