Verifying Income for Self Employed Applicants

[Sam Lofton]

Hi,

    I'm screening tenants for my next rental and have an applicant who is self employed. How would you recommend verifying his income? Are there extra stipulations you would include in the screening process if a potential tenant doesn't have a W2 job?

Thanks in advance,

Sam 

[James Mcsweeney]

@Sam Lofton Yes you can and should ask for several years of tax returns. If she sold her home it was likely due to financial problems. Self employed applicants really have no guaranteed income and it can fluctuate wildly over time. They also often have bad credit scores if they are bad at managing a business. Your screening should find out everything you need to know.

I personally will not rent to anyone self employed. Their landlord will be the first to go unpaid and they will constantly ask to pay late so they can pay creditors first.

They are high risk and should be avoided, pass them on to a less qualified landlord.