Verify Your Tenant Applicant’s Income The Right Way
Dealing with non-payment of rent is one of the most stress-inducing parts of the job. According to a survey conducted by Transunion, the number one worry is a resident that doesn't pay rent on time. We know income verification is a critical part of the screening process that ensures your applicant can meet their monthly rent obligations, so all landlords should verify a potential resident’s income as part of the screening process. Traditional methods of verifying income include obtaining the applicant’s:
- Pay stubs
- Bank statements
- Tax returns
These historic methods are time-consuming, subject to fraud, and risk facilitating subjective or varying treatment of applicants. And digging through an applicant’s bank statements to find the relevant income data wastes so much time for already-overburdened teams.
Did you know pay stubs, bank statements and tax returns can be easily falsified? A simple Google search of “make fake pay stub” surfaces over half a million returns. It’s easy to find countless websites with fake pay stub templates for either free or purchase.
These challenges waste staff time every day and leave you and your firm open to real liability risk; forfeiting productive hours to this unproductive paper chase is costly and cumbersome. Instead, you can automate the entire process and, in minutes instead of days, have confidence the data you see is authentic and accurate.
The Closing Docs delivers a modern, automated approach to verifying a prospect’s income. We provide objective, automated income verification, using a new technique that locates, aggregates and reports the bank-verified annual and monthly net income of your candidates.
How does automated income verification work?
Automated income verification analyzes up to 12 months of the applicant’s net income history to confirm whether reliable sources of income exist.
The Closing Docs locates, aggregates, and reports the applicant’s income data directly from their bank, ensuring their income data is accurate, trustworthy, and hasn’t been fabricated in any way.
The Closing Doc’s income report is a property manager’s best friend
Once an applicant’s income history is collected, the data is organized into an easy-to-understand report illustrating your applicant’s capacity to pay rent over the long haul.
Along with providing an applicant’s annual and monthly net income, the report considers further details regarding how these figures were calculated. There are two main portions of this details section:
Recurring Deposits: Net income deposits that have been consistent over time. An employee on payroll, for instance, will have a consistent history of income deposits. This net income stream would fall under the Recurring Deposits category in the report.
Non-Recurring Deposits: Net income deposits that have been inconsistent over time. An employee compensated on commission, service industry workers, and the self-employed may not have a steadily recurring source of income. Yet, they may well qualify to pay rent. To gain the full financial picture of your applicants, Non-Recurring Deposits must be considered.
To see a full report, just click here.
Our automated income verification service provides the most accurate and up-to-the-minute income data available. Full transparency improves understanding regarding applicant risk profile. Make smarter, defensible decisions now with The Closing Docs.