Chapter 4

How to Verify a Tenant’s Income and Employment

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The Complete Guide to Tenant Screening

How to Verify Tenant Income and Employment During the Landlord Employment Verification Process

Verifying a tenant’s current income and employment is an essential part of the screening process. Not only does this ensure they can afford the rent you set in place for your rental property, but you’ll know whether or not the information they provided is correct.

In this article, we’ve answered the most common landlord questions about tenant references to help you feel confident when verifying a tenant’s income and employment.

When Should You Reach Out to a Tenant’s Employer? 

It’s best practice to begin the verification process once a tenant has completed their rental application. Since most tenants usually begin their apartment search 60 days before their desired move-in date, landlords try to complete the screening process as soon as possible while taking the proper steps to screen a tenant.

You can handle this part of the process yourself, or utilize property management software platforms to make the process more streamlined for free. When a tenant completes a rental application on Avail, our system automatically begins the verification process by reaching out to previous landlords and sharing their responses through your landlord account. Credit, criminal, and eviction reports can also be added to an online rental application to keep all documentation in one place. Experience a more streamlined verification process by creating a free landlord account with Avail.

How Should You Reach Out to a Tenant’s Employer? 

The best way to reach out to a tenant’s employer varies depending on their verification policy. Some companies prefer an email to a specific email address or have a phone number specifically to verify employment. If you’re unsure on how to go about this part of the process, you can run a Google search to see if there’s any information online on how they handle employment verification.

Both options are great ways to confirm whether or not the references they provided are real members of the company. If you plan to call an employer directly, we provided an example script of what to say on the phone:

“Hi, can I speak to [reference’s name]? I’m calling in regards to [tenant’s name]. [He or she] is applying to rent my property and I wanted to verify some information. Do you have a few minutes to chat?”

What Questions Should You Ask a Tenant’s Employer? 

Whether you’re emailing or calling, there are certain questions to ask to ensure a tenant can afford your rent. Here are the important questions to ask:

  • Can you confirm that [tenant’s name] has worked for you since [date of employment]?
  • What does he or she do for the company?
  • Can you verify that he or she makes [salary amount]?
  • Is [he or she] a responsible employee?

However, it’s important to note that some employers will only disclose employment status and dates of employment.

What If Your Tenant’s Employer Doesn’t Reply? 

There will be times where a tenant’s employer will not respond or provide answers to your questions, but you can always refer to their credit report for insights on their financial health.

A benefit to having a thorough tenant screening process is being able to rely on various forms of information to determine if a tenant can afford to rent your property.

What If an Employer Refuses to Say Anything?

It is possible that the employer will tell you they can’t release any information regarding income level or other questions besides verifying dates of employment. Keep in mind that employers often fear lawsuits. In this situation, a tenant could sue an employer if the employer says something to cause the tenant to be unfairly rejected.

This is why some employers may not reply or will only provide minimal information. They will sometimes only verify, “yes, [he or she] works here.” It’s ultimately the employer’s choice whether they disclose any information about an employee.

Remember, reaching out to employers is an important step to follow, but it’s not the only way to verify income. You should also have the tenant upload a W-2, pay stub, or offer letter in your rental application.

What If a Prospective Tenant Provided a Fake Reference? 

If the reference they provided seems illegitimate, then you can always do some additional digging online or social media to confirm your suspicions. While it’s never ideal to be provided falsified information on a rental application, this can happen from time to time.

To avoid signing a rental lease with a tenant that fails to share accurate information, you can run a thorough tenant screening process to get the full picture on who they are as a renter. Another option would be to deny the applicant due to being unable to properly verify the information they provided.

Should You Document Your Tenant Screening Process?

Every part of the tenant screening process should be documented for future referencing. Whether that’s the notes you took during the phone call with an employer or an email thread, everything should be saved to be able to easily access.

Landlord software like Avail keeps everything in one place, which can be accessed at any time and on any device.

Simplify the Landlord Employment Verification Process

Verifying a tenant’s employment can seem daunting at first, but this process can be easily streamlined with the right landlord tools. Avail allows you to advertise your rental property, screen applicants, and sign an online rental lease all online. Whether you’re a seasoned landlord or brand new to managing a rental, Avail can make renting easier for everyone.

Create an account or log in to start screening tenants.

Continue reading below to learn what questions to ask prior landlords.