Our customer support is available 24/7:
How Do Landlords Verify Pay Stubs?
If you are a landlord, you probably know that the applicant has to prove his income in the renting process. It is tradition to use pay stubs to obtain extra information about the would-be occupant.
However, given the increased ease of acquiring fake pay stubs, pay stub verification has now become important. Understanding “How do landlords verify pay stubs?” can be useful to avoid fraudsters.
Table of Contents
Do Landlords Verify Pay Stubs?
How do Landlords Verify Pay Stubs
How Can You Spot Fraudulent Pay Stubs?
Other Ways to Verify Income
Best Practices for Landlords
To Sum It Up
FAQs
Do Landlords Verify Pay Stubs?
To answer the question, “Do landlords verify pay stubs?” The answer is yes; landlords do verify pay stubs, and the response could not be more straightforward. Modern-day landlords require more knowledge on “How do landlords verify pay stubs?”. They also need to know why it is necessary to verify. Income verification ensures a sound rental relationship and acts as security for your investment.
How Do Landlords Verify Pay Stubs
There are several ways that landlords verify pay stubs:
Direct Employer Contact
The landlords may start the verification process by using the contact details of the applicant’s employer . However, when making these calls, do not use phone numbers gotten from the pay stub. For this reason, the number may also be fake if the document is a fake one in the first place.
Third-Party Verification Services
Employment and income verifications may be done by hiring a professional. Such services work together with large companies and they can confirm the income data with relative ease. This could at an extra cost be more time effective and more accurate.
Bank Statement Cross-Reference
When it comes to checking that the stated income is being deposited, pay stubs compared to recent bank statements are sufficient. Search for the frequency of deposits, which should correlate to the pay stub’s net pay. However, you can allow a slight variation because some may work overtime or commissions may not tally.
How Can You Spot Fraudulent Pay Stubs?
Now that you know “How do landlords verify pay stubs?”, you should know how to spot fraudulent ones:
Professional Document Appearance
Original pay stubs always have a standard, neat-looking style. It should contain no messy arrangement, align properly, and use consistent fonts. Pay stubs prepared by modern payroll software have uniform formats. Hence, differences in the fonts or misaligned columns may be a sign of fraud.
Mathematical Accuracy
Authentic pay stubs must be mathematically accurate. That is, the gross pay minus deductions should be equal to the net pay. The YTD should tally with the total of the previous pay periods. It might take a while to conduct these calculations. However, it’s worth your while because fraudulent documents usually have discrepancies.
Reasonable Numbers
Take notice of rounded numbers or similar values on different pay stubs. Original pay stubs should not be identical as some employees work different shifts and some work overtime. Perfect round numbers or identical payments across multiple periods may indicate fabrication.
Digital Image Analysis
When you are given digital copies of pay stubs, be sure to look at them and notice if they have been edited in any way. You can detect blurred areas near the text, as well as low and high-quality images in the same document. There can also be different compression patterns in different areas of the document. On most edited pay stubs, there are signs that the edited parts were tampered with.
Other Ways To Verify Income
You can verify the income of applicants with other documents, and they include:
Tax Returns
W-2 forms and tax returns also give a picture of the year's income and are much harder to forge than pay stubs. The above-mentioned document can be valuable when it comes to proving extra sources of income and for freelancers.
Bank Statements
Regular bank statements that reflect a consistent flow of income can also suffice. Search for the income patterns that align with claimed employment income and pay periods.
Employment Verification Letters
Employer written verification can add to the information provided by the pay stubs. These letters should be written on the company’s letterhead paper. It should also include the person’s contact details for purposes of confirmation.
Best Practices for Landlords
Here are some best practices to implement as you verify applicants:
Establish Clear Policies
Establish and develop a step-by-step method on how to verify income. This helps in being able to treat all the applicants equally. It also gives you a proper structure to undertake your screening processes.
Maintain Proper Documentation
Document all your verification attempts. This can include when you made attempts to contact the employer and all the material you provided. It may help to clear up any doubts about your screening process in the future.
Use Multiple Verification Methods
You should not depend on just one method of verifying the income of an applicant. Mix the information from pay stubs, bank statements, and employer verification. This increases the effectiveness and reliability of the obtained results.
To Sum It Up
Do not forget that income verification is only one aspect of the tenant screening process. It should be done in combination with other aspects of screening. However, proper pay stub verification offers the foundation for a more effective method of tenant selection. This can greatly assist in the security of your rental property for years to come.
Our professional paystub generator helps reduce the stress of the income verification process. We streamline the income verification process while maintaining the highest standards of accuracy and authenticity. It doesn’t matter if you're managing a single rental property or overseeing multiple units. Our tools can help you make informed decisions about potential tenants through proper documentation.
