An Employer that does not provide pay stubs (but writes checks)!

9 Replies

Hi,

I am currently screening tenants (mother & daughter) for a 4bdr/3.5bath home. One of the prospects explained to me that she does not receive pay stubs and is paid by a hand written check and cashes it.  When I spoke to the employer to verify employment and request proof of income; she didn't have any documentation either. Soooo, I'm creating a form for her to complete and wanted to know if there is already one put to use that can be shared. If not, let me know your opinion on the form or your experience please!

EMPLOYMENT & INCOME VERIFICATION

  • Owner/Operator Name
  • Business Name and Address
  • Employee Name
  • Verify Full/Part- time
  • Hours Worked Per Month
  • Hours Worked Per Paycheck
  • First day of employment
  • Previous 90 Days of Paydays, amount paid, and check number

I (employer) verify that the information provided accurate and true.  (Date)

I really want to ask the employer to provide bank statements for checks paid to her....never going to happen lol.

Thanks,

Emerald

P.S.

THE BOOK ON MANAGING RENTAL PROPERTIES IS AMAZINGGGGG!!!! (I'm green...)

Hey @Emerald Sie-Duke , you need to verify income! I would request tax returns and our bank statements from the prospective tenant. Just getting a letter from an employer who keeps no records is not verification. A lot of landlords (especially landlords who self manage) make these types of mistakes and it usually ends up hurting them. Treat this like a business you set the rules and the tenants must meet those guidelines or you don't rent to them. 

If the tenant says she gets written a check every 2 weeks for X, then it should be very easy to prove this with bank statements. If the tenant uses a check cashing place to cash her paychecks and does not have a bank account, then on to the next applicant! 

Originally posted by @Emerald Sie-Duke :

Hi,

I am currently screening tenants (mother & daughter) for a 4bdr/3.5bath home. One of the prospects explained to me that she does not receive pay stubs and is paid by a hand written check and cashes it.  When I spoke to the employer to verify employment and request proof of income; she didn't have any documentation either. Soooo, I'm creating a form for her to complete and wanted to know if there is already one put to use that can be shared. If not, let me know your opinion on the form or your experience please!

EMPLOYMENT & INCOME VERIFICATION

  • Owner/Operator Name
  • Business Name and Address
  • Employee Name
  • Verify Full/Part- time
  • Hours Worked Per Month
  • Hours Worked Per Paycheck
  • First day of employment
  • Previous 90 Days of Paydays, amount paid, and check number

I (employer) verify that the information provided accurate and true.  (Date)

I really want to ask the employer to provide bank statements for checks paid to her....never going to happen lol.

Thanks,

Emerald

P.S.

THE BOOK ON MANAGING RENTAL PROPERTIES IS AMAZINGGGGG!!!! (I'm green...)

 Get her bank statements. You will be able to easily track all of her "paychecks" that way.

Originally posted by @Emerald Sie-Duke :

@James Wise She cashes it. No bank statements.

 Not having a bank account is a red flag. Typically means she is financially irresponsible. Just move on to other prospects. With a 4B/3.5B house sounds like you've got an asset that rents for more than the $650-$750/mo range. With an asset like that you shouldn't be putting up with the same nonsense that you would be putting up with in the low rent range. Even in the low rent rant this is still a pretty damning factor.

@James Wise

Ask for the tax docs and if they appear you will know if she earns 3 x the rent or not and if it’s reported. I believe the number is ... mire than 50,000,000 Americans are unbanked. That may make them unsophisticated but not necessarily ineligible to rent from you. The tax docs tell the truth. Also, did you do s credit check,criminal check, eviction report and application through s sophisticated tool like Transunion Smart Mover, Cozy or Ezlandlords? They do all of this online and it’s inexpensive and paid for by he tenant prospect. This is not an area for shortcuts.

Good luck!

@Emerald Sie-Duke

As @stevenakindona said, get last 2/3 years of tax returns AND at least 1 year of bank statements. Tenants run game with “I only get paid in cash” and “I don’t have a bank account because...” and it’s typically a ploy to inflate their income.

Bank statements will show only bi-weekly deposits but also money management. Tax returns will show true income (people typically don’t OVER report income). If she balks or provide faux documents move on.

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