Tip of the Month - January, 2018


Source:Leases & Rental Agreements-2nd Edition
BY: Maria Stewart & Attorneys Ralph Warner & Julia Portman

Obviously, you want to make sure that all tenants have the income to pay the rent each month.  Call the prospective tenant’s employer to verify income and length of employment.  Make notes on the Tenant References form. 

Before providing this information, some employers require written authorization from the employee.  You will need to mail or fax the employer a signed copy of the release included at the bottom of the Rental Application form or the separate Consent to Background and Reference Check form. If for any reason you question the income information you get by telephone-for example, you suspect a buddy of the applicant is exaggerating on his behalf-you may also ask applicants for copies of recent paycheck stubs. 

It is also reasonable to require documentation of other sources of income, such as Social Security, disability payments, workers compensation,
welfare, child support or alimony. 

How much income is enough? Think twice before renting to someone if the rent will take more than one-third of their income, especially if they have a lot of debts.

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This web page was updated on 12/28/2017.