What Are The Most Reliable Documents For Income Verification?

Tenant screening is the bedrock of finding great residents. The applicant screening process looks for clear signs that someone will make a reliable renter, like a strong credit history, positive references, and predictable income. 

Verifying income is one of the most important steps in tenant screening because it verifies that an applicant can afford rent consistently. 

Rather than taking someone’s word that they’ll make rent, each application should undergo thorough income verification by reviewing documents like pay stubs and bank statements. 

But not all income documents are credible. Some are easy to fake, and others might be open to misinterpretation. Knowing which documents to trust and how to spot fakes can help you detect fraud before signing a lease agreement. 

To help you sort the fakes from the real deal, we’re going over the seven most reliable income verification documents and how to review them for tell-tale signs of fraud. 

Quick Insights

• Income verification is a must-have in tenant screening—it indicates whether a tenant will be able to pay rent. 

• When applying, tenants should provide documents to prove that they meet rent-to-income ratio requirements. 

• Not all documents are equally reliable or trustworthy. Some are easier to fake or misinterpret than others. 

• Bank statements, W-2 forms, tax returns, and social security statements are usually the most reliable—once you’ve verified them. Approach documents with healthy skepticism until proven otherwise. 

• Request more than one income verification document, and cross-reference information across documents. 

• Enhance your tenant screening with fraud detection software and payroll integrations. Both are faster and more reliable than manual document review.  

Why Income Verification Matters in Tenant Screening

Income verification evaluates an applicant’s source of funds so you can make confident decisions about approving quality tenants. If a future resident can provide proof of income—like from a job or social security—they’re more likely to afford their rent payments. 

If a resident can’t cover their rent, they may pay late or not at all. Verifying income up front, before you’ve signed on the dotted line, can save you the headache of missed rent payments and dealing with bad tenants. Income verification can also reduce the risks of expensive and difficult evictions. 

Setting a consistent rent-to-income ratio can help you apply fair and consistent screening standards. Evaluating all applicants on the same objective criteria is crucial to comply with laws like the Fair Housing Act and avoid discrimination accusations. 

After all, accurately forecasting your property’s rental income is critical to maintaining financial stability. Rent payments are an important part of cash flow calculations and maintaining your business’ long-term viability. 

The 7 Most Reliable Documents for Verifying Income

When verifying income, not all documents are equally trustworthy (some are more prone to tampering). But every document you receive should undergo a thorough inspection for signs of fraud. Why? Because it’s easier than ever to create fraudulent documents.

In an AI-enabled environment, scammers have a host of free and user-friendly tools to create fake proof of income, plus fraud-as-a-service (FaaS) marketplaces. Made-up pay stubs, employment letters, bank statements, and tax forms are all easy to fabricate with software like Canva or Adobe Photoshop. 

And property managers are feeling the consequences through rental application fraud. According to a National Multifamily Housing Council survey from 2024 on the impacts of rental application fraud, 80% of respondents reported that applicants had misstated their information, including by fabricating or altering pay stubs and employment references. 

Keep in mind that no one document on its own can give you the full picture. Always look at more than one type of document—mismatching data across documents can point to possible fraud. It might be easy to fudge the numbers on one document, but scammers may struggle to keep up the ruse across several documents. 

So, what are the most reliable documents you should ask for to verify income? Take a look.

1. Official Pay Stubs

Most applicants with a traditional job receive pay stubs, so they’re a common method for proving income with moderate to high reliability. Pay stubs also tend to include additional information like gross income, deductions, and employer information—all of which can help you evaluate a tenant’s overall financial health.

But beware…pay stubs are easy to fake. Thanks to online templates and widely available editing software, all it takes is a few clicks to generate an authentic-looking but totally fake pay stub. 

Pro tip: Manual document inspection is a solid first step, but sophisticated scammers can fool your eyes. Document fraud detection software like Snappt can scan pay stubs quickly and complete fraud analysis in minutes with a higher accuracy rate. 

2. Bank Statements (Last 2–3 Months)

Bank statements are a great complement to pay stubs because they show actual deposits over time. If you want a high-reliability source for reviewing your future resident’s cash flow, combining bank statements and pay stub review is a winning combo.

If your applicant is self-employed, consider requesting documents from the last six to 12 months. Their month-to-month pay may be more variable, so a longer time window can provide a better sense of their typical income.  

But bank statements are prone to tampering, so corroborate the data with pay stubs: 

• Look for recurring payroll deposits from an identifiable employer
• Check that the dollar amount on the pay stub matches the dollar amount deposited into the account

And be on the lookout for signs of fake bank statements, like outdated bank logos or multiple transactions with round numbers.

Pro tip: Look for recurring payroll deposits from an identifiable employer. If you see payments at regular intervals from a verified employer, those are good signs both that the statement is authentic and that the tenant has stable income. 

3. W-2 Forms (Most Recent Year)

W-2 forms have multiple benefits, including confirming job stability. They’re a reliable source for verifying last year’s employment income, especially for long-term employment. And because employers file these forms directly with the IRS, they come with a lot of authority.

But W-2s are a snapshot of last year. They show the past, not the present. Even if multiple W-2s from the same employer can point to long-term stability, these forms can’t tell you about current income the way a pay stub or bank statement can.

So, take W-2s with a grain of salt. Make sure to get a current view with recent pay stubs and bank statements. 

And unfortunately, filling out a blank W-2 with a fake employer and income data is all too common. Independently verify an employer’s W-2 information with your own research. If you have any doubts, contact the employer directly. 

4. Tax Returns (Form 1040, Last 1–2 Years)

Complete, unaltered tax returns are highly reliable and give a complete picture of household income, deductions, and business activity. 

They’re especially useful for freelancers or gig workers who may not have W-2s or pay stubs. And for households with multiple income streams, tax returns reflect total income for a more comprehensive review. 

If your applicant is self-employed, use these tips to better evaluate income: 

Take a close look at Schedule C. This section of a Form 1040 covers income or loss from a business. Review year-over-year profits to assess if earnings are consistent or, better yet, increasing.

Review bank statements for business performance. Even if a self-employed applicant doesn’t receive bi-weekly paychecks, they should still receive regular client payments. Check for deposits from multiple clients—a diverse income stream is more resilient.

Request 1099 forms. Many self-employed workers receive a Form 1099 from each client who pays more than $600 in a calendar year (but these requirements may vary). These forms can tell you more about an applicant’s clients and their income from each.

5. Employment Offer Letters or Contracts 

Some applicants may be waiting to start a job, like recent grads or relocating tenants. In this case, they may not have tax returns, pay stubs, or bank statements to prove their employment. 

These applicants might provide a signed offer letter or contract from a future employer. While helpful, these documents have only medium reliability—it doesn’t take a scammer much effort to type a fake letter and add a bogus signature. 

So, follow up with employment verification if possible. Don’t take an applicant’s information at face value—employment verification scams are common. Research and confirm employer details through independent research before contacting the organization. Otherwise, you might be calling a false number. 

6. Social Security, Disability, or Pension Statements 

Retirees or tenants with fixed incomes frequently receive social security, disability, or pension payments—all of which are consistent and stable.

Verified retirement payment statements—like pensions or social security—are highly reliable and indicate consistent, long-term income. Disability and social security payments come directly from the government, while pensions may come from the government or financial institutions. Both are reliable.

7. Connected Payroll Software Reports

If you’re looking for a fraud-resistant document, look no further than payroll integrations. Connecting with payroll systems means you’re going directly to the source for income and employment data, and it’s difficult for bad actors to interfere with this process. 

A major benefit of connecting to payroll systems is automating the time-consuming work of manual employment verification. And some payroll processors can also provide data for contractors, giving you another way to verify self-employed workers’ income. 

Documents that are Less Reliable (Or Require Extra Scrutiny) 

Applicants might provide documents that may seem trustworthy at first glance, but you should still give them a thorough lookover. Generally speaking, these documents are even easier to alter or are too old to verify. Always ask for recent, original documents. 

Screenshots of bank apps or pay stubs can be easily manipulated, even by amateurs.

Typed reference letters are hard to authenticate without directly contacting the employer or a verified digital signature.

Outdated documents, typically older than three months, might not reflect an applicant’s current income. Tax forms like W-2s, 1040s, or 1099s should be dated within the past year.

Documents with red flags warrant extra scrutiny, like those that look altered, are missing key information, or are inconsistent with other documentation. 

Red Flags to Watch Out for in Income Documents

A good first step in spotting fakes is to review all income documents for warning signs, like: 

• Mismatched data. If you see inconsistent names, addresses, or phone numbers across documents, take a closer look and consider asking for clarification.
• Round numbers. Paychecks are rarely round numbers, like $2,000.00. If you see multiple deposits that are identical, rounded amounts each pay period, you may need additional proof of income.
• Formatting inconsistencies. Banks and payroll processors maintain precise formatting, fonts, and brand standards. If you see mismatched fonts, odd spacing, or outdated logos, you might be looking at a fake.
• Suspicious dates. Paychecks typically go out on the first or last day of the month or mid-month. Other dates throughout the month may be suspicious. 
• Inconsistent amounts. Match pay stubs with a corresponding deposit on a bank statement. Look for inconsistencies like a paycheck for $2,540.33 with a deposit of $5,540.33.
• Missing employer information. Without employer contact information, you have no way to verify employment. 

Keep in mind that an evolving threat landscape has made it easier than ever to alter and fabricate authentic-looking documents with just a few clicks. Manual review alone can’t catch fakes, so you’ll want to build a multi-layer fraud detection strategy to find fraud before it hurts your business.  

Tips for Building a Strong Income Verification Process

A solid income verification process will help you screen tenants more efficiently while staying on the right side of fair housing regulations. Follow these guidelines for productive and compliant income verification: 

Ask for multiple forms of documentation. One of the quickest ways to spot signs of fraud is through cross-referencing. Faking one document is simple, but maintaining the lie across several is tricky.

Set a clear rent-to-income ratio. Apply a standard for every applicant. For example, you may determine that an applicant’s monthly income should be at least 2.5 times the monthly rent to ensure residents can afford rent.

Document your process and communicate it with applicants. Outline all tenant screening steps. When a renter starts an application, review the process with them.

Follow a consistent process. Repeat income verification the same way, every time, and document all interactions with applicants. This information could be useful in the event of a discrimination accusation.

Train your team. Everyone should receive training on verifying income and using tenant screening tools. Train them on how to look for fraud red flags and what to do if they find discrepancies.

When in doubt, contact employers directly. If you still have concerns, reach out to the employer. Always get written permission from applicants before contacting employers.

Increase accuracy with software. Manual income verification isn’t foolproof. Income verification is faster and more reliable when you integrate tenant screening with income verification software, like Snappt. 

Simplify and Enhance Income Verification with Document Fraud Detection

Income verification answers the all-important question—can a tenant afford rent? All applicants should provide documentation to prove their income with multiple verified documents such as bank statements, pay stubs, and tax returns. 

But not all documents are equally reliable. Even trustworthy sources can undergo alterations, so never trust your eyes alone. Use more than one document to cross-check information, and fraud detection software to help you make informed decisions.

Want help spotting fake documents before approving a tenant? See how Snappt helps property managers catch fraud and verify income confidently with our guide to fraud detection methods.