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?
Ask for federal tax returns.
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.
@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).
@Gigi Ochoa -- The stable income is to verify the below, which you can get through other sources if the prospective tenant is retired:
- Ability to pay: bank statements and tax returns
- Willingness to pay (are they responsible with paying bills on-time): credit score
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.
Best of luck!
Thanks everyone! We will go ahead and ask for federal tax returns as well.
How does your rent compare to her previous house payment? If less or comparable, and she has good credit, wouldn't that be sufficient?