Sugar Land, TX · Member since 2014 · 8 posts · 0 votes
Hi,
We have a retired teacher that wants to rent our unit. Everything checks out great about her - she even wants a 2 year lease, but how do we verify income? She showed us her retirement checks (those alone do not meet 3x rent). And she about to sell her home to downsize. We asked for a HUD statement to see how much proceeds she will get from that sale as well as bank statements.
Anything suggestions on how we handle this prospect?
Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
10y
You don't say what other income (aside from the retirement checks) she supposedly has that you're trying to verify, so it's hard to give you a specific answer. But, in general, bank statements and/or tax returns would likely show whatever other income she may have.
Financial Advisor · Elmira, NY · Member since 2015 · 132 posts · 67 votes
10y
@Gigi Ochoa If her income isn't sufficient, you could have her pre-pay (from house proceeds) so that her income would cover the (now lower) monthly payment.
Some areas make it difficult to collect more than a certain # of terms' rent up front, but in some cases structuring as a full year (or two's) lease rather than a 12 or 24 month lease can work - check local laws/legal advice (not a lawyer, so this isn't legal advice).
Investor · Gatineau · Member since 2015 · 19 posts · 10 votes
10y
I would just try to compile the most information you can,( Credit Report, Tax Return, Bank Statement) Hard to make a complete judgment, but in my opinion a retired teacher seems like a pretty solid prospect. Just make sure the financials check out.