Hi Landlord fellows,

I hope you all enjoy these nice spring days.

Here is my question today and want to know how you do with your applicants:

I ask the potential tenants who will bring the following info when the application turns in. But, it seems is not too popular. I want to make sure they have three months living expenses to live on, just in case.

2. Your employment verification from your work.

3. A copy of bank statement for the last three months.

4. a copy of your tax returns for the last two years.

5. three non-relatives references, e.g. name, phone number and email (also).

Any other financial info that you are asking to make sure they have financial support.

By the way, With this forum suggestion, I start charging the application form($10) when they take the form with them, it will apply to their application fee.

How much do you charge the application fee? I know many property mgt charge a higher fee for application, from $200 to $500.

Thanks.

I'm guessing here, but likely the $200-$500 is not an application fee. More likely it's what is called a "Move-in Fee" once the application has been approved and/or they're collecting a holding deposit at the time of application. I know some companies do that to make sure the applicant is serious and not wasting their time shopping around at other places, but if the app isn't approved they refund the deposit portion.

That would be too much information for my tenants. Many of mine don’t have bank accounts. If they have a W-2 job, then I don’t need to see tax returns. I only would ask for tax returns if they were using self-employed income as part of their [income = 3X rent] . So far, the only ones using ‘self-employment income’ were not filing it on taxes, so they had no proof of that income. So, to be clear, I only ask for tax returns as proof of self-employment income.

I don’t ask to see bank statements. Most of my tenants do not have three months’s living expenses. Sadly, much of of the US population maybe doesn’t have three months living expenses either., no matter if home owner or renter. When that safety net of three months living expenses is talked about on this forum, it is my understanding that it is being discussed OT, off topic ( of renting,) as what we wish everybody had. It is good financial advice for anyone. But, I don’t know that others require proof of that from renters. I am pretty sure most of my tenants wouldn’t have it, even good tenants.

My state limits application fees to $20 or $25. They is difference in two laws that address application fees that has not been resolved. Application fee is an area that can get ugly, if not handled well, in my opinion. I use $20 application fee, but I return it if I don’t rent to them. I don’t believe I am required to return it in my city, but it cannot exceed my actual costs, nor the dollar limits set by those two laws/ rulings/ whatever. Oi! The

With my tenants in the super-low-end income group, I only need the last month of pay stubs or benefit letter to prove income. My application asks for 2 emergency contacts - who are often relatives. I charge $30 app fee, which is a few dollars more than it costs to run the reports. VA allows me to charge more. I also require a govt-issued photo ID.

Like Busy, I would ask for the last year's tax return for a "legitimately" self-employed person. However, they normally work under the table, so DQ - income must be documented.

Alice, You are asking the right questions, I think that your timing is off.

I use lockbox showings and you do not. I require little of the prospective tenants to view the property and I include a link to apply if they are interested. This application requires everything that you require minus the references and tax returns.

YTD check stub, Photo ID are attached to application. In home inspection is the final step in the application process.

Financial, I call the employer to verify that they are employed and a ball park figure for their salary.

If it is a business that doesn't give information on employees, I require a couple of months of pay slips.

If they are self employed I ask for a full year of bank statements, plus some sort of indication that they really are running a business: business cards, websites, signs on their car, ability to talk about their business, something that looks business-like.