How to Get Proof of Employment

Every part of the tenant screening process is crucial to ensuring you find responsible and reliable residents. But finding a renter who can pay rent just might be the most important aspect.

Verifying an applicant’s income starts with proof of employment, which not only confirms that an applicant will be able to pay their rent every month, but it can can indicate that they’ll be a reliable renter.

We’re breaking down everything you need to know about proof of employment, including income verification, and how you can get and verify employment documentation (and catch fraudulent documents). 

What is Proof of Employment? 

Proof of employment is any official document or set of documents—like pay stubs, employment letters, payroll verification, or W-2 forms—verifying that an applicant works at a specific company or previously worked there.

Many properties require potential tenants to earn 3x the monthly rent to qualify for a lease. Proof of income documents prove that an applicant meets this threshold and can paint a clearer picture of their overall financial responsibility and security. 

The Importance of Accurate, Authentic Documents 

Thanks to AI and FraudGPT, it’s never been easier to create fake documents or create a fraudulent identity—which is why you need to confirm the authenticity of every proof of employment document an applicant submits.

You can combat fake documents getting through the tenant screening process by incorporating technology into the process. It ensures that any attempts to use a fraudulent document in the application process are flagged, keeping possible offenders out. 

The documents need to be accurate and authentic for many reasons, including:

• Assessing applicants fairly and transparently
• Reviewing their financial stability
• Reducing the risk of eviction and other legal issues
• Maintaining fair housing practices
• Supporting long-term lease stability

Securing this step in the tenant screening process also keeps property values up since it minimizes the risk of property damage from bad tenants. 

Why Proof of Employment is Critical for Property Managers

You want to know that your residents can pay on time, every time. Applicants who can confirm proof of employment tend to be more financially stable and reliable, so you don’t have to worry about missed rent payments or serious delays.

Risks of Accepting Fake or Insufficient Documents

Insufficient processes for this critical part of tenant screening put everyone at risk—current residents, property managers, other staff, and property owners.

Current residents want good neighbors, while owners and staff want to avoid serious financial risks, like missed rent payments, property damage, and expensive evictions. 

Another risk? Failing to detect fake documentation or accepting insufficient proof of employment documents—not cross-checking two different types to ensure accuracy, for example—allows bad tenants to slip through the cracks.

Those willing to provide fake documents might also be willing to engage in other illegal activity, none of which you want on your property. A lax system can turn an unfortunate incident from a fluke into a reputational hit.  

Role of Proof of Employment in the Process

By validating proof of employment documents during the application process, you can avoid future evictions and potential financial losses from:

• Missed rent
• Vacancy costs
• Legal fees
• Property turnover costs

A fake pay stub, altered tax return, or doctored bank statement can’t hold up to directly verified employment and cross-checking official documents. Do your due diligence.

How to Request Proof of Employment 

Now that you know what proof of employment is and understand the importance of requesting it—let’s explore how you can request proof of employment from the applicant.

Step 1: Clearly Communicate Requirements to Applicants

When asking applicants for sensitive information—like financial or tax documents—be transparent. Let them why which documents you need and why, and offer several options to make sure they can meet your requirements.

For example, someone who works as a 1099 contractor won’t be able to provide a W-2.

Acceptable options for proof of employment include:

Employer letters. Written by a current or former employer on company letterhead, these confirm job title, salary, and period of employment.

Recent pay stubs. Confirm consistent income by requesting more than one pay stub from the applicant.

Tax documents. W-2s, 1099s, 1040s, or other tax documents show how much income an applicant made in a given year, giving you an idea of whether they can afford rent.

Bank statements. Some applicants are comfortable providing bank statements that show how much money they have available to cover rent, one-time fees, and other bills. 

You can collect them manually, but using income verification technology streamlines the process for everyone involved (more on this coming up). 

Step 2: Set Deadlines for Submission

Prospective tenants—like property managers and landlords—want a quick and seamless process. Delays can lead to extended vacancy periods and missed opportunities to place a reliable long-term renter.

On the applicant’s side, a lengthy, disorganized process can mean missing out on a preferred unit or losing a spot for a competitive property to another renter. 

Setting firm deadlines for submitting proof of employment speeds up the approval process, ensures you don’t lose out on a quality tenant, and helps verify income and employment quickly.

It also improves compliance with lease start dates and move-in timelines and lays the foundation for a good relationship between you and a tenant. 

Using the best available technology to verify documents makes everything faster and more secure since neither side has to wait for manual reviews and further delays caused by additional requests. 

Step 3: Obtain Signed Consent for Verification

Keep the income verification process moving smoothly and quickly by staying compliant with all legal requirements.

Federal, state, and local laws for employment verification help protect applicants from discrimination, making sure screening processes are fair and adhere to privacy laws. That includes data privacy laws—proof of employment is sensitive and needs to be stored securely.

Under the Fair Housing Act (FHA), you can’t use employment verification in a discriminatory way. The same income and employment verification requirements must apply to all potential renters regardless of:

• Gender
• Race
• Disability
• Familial status
• Religion
• National origin

You also need signed consent from applicants for proof of employment and income verification. Here’s an example of what a consent form to request employer confirmation looks like.

If you’re running a background check on a potential renter that includes a credit report, you and any service used must also comply with the Fair Credit Reporting Act (FCRA). 

Methods for Verifying Proof of Employment

How you verify proof of employment comes down to preferences, but consider a method or combination of ways to confirm income that integrates seamlessly with the rest of your tenant screening process. 

Manual Verification

This hands-on method involves verifying an applicant’s job title, salary, and duration of employment with their company without a third-party service. You might directly contact a future resident’s current and recent employers and review and cross-reference documents. 

If you choose manual verification, communicate professionally and directly with the required institutions—and be ready to provide your credentials. Good employers and accountants will want to ensure they aren’t inappropriately disclosing sensitive employee or client information, and banks will have official systems as well. 

Using Third-Party Employment Verification Services

Another option is to use a third-party screening and employment verification service to avoid tedious manual verification. These services contact employers on your behalf to confirm applicant details, such as job title, salary, and duration of employment. 

Outsourcing this process gives you back time and taps into these services’ authority. Many employers have likely worked with them before, so there’s no lengthy back-and-forth confirming their legitimacy. 

Cross-Checking Documents

A final option is to cross-check documents to verify their information matches—that pay stubs from a previous tax year match the totals on a tax return, for example. If one set of documents contains wildly different information from the other, that’s a red flag and a sign of potential fraud. 

Once flagged, prospective tenants must provide additional verification, causing delays, especially if you’re doing it manually. Since verifying proof of employment documents by hand can be difficult, consider working with a secure, reliable technology service. 

Best Practices for Obtaining Proof of Employment 

Not sure where to start with getting proof of employment? Follow these best practices.

Communicate Clearly

Start by outlining all of the requirements in the rental application process so applicants aren’t surprised by requests for official documents, like pay stubs or tax returns.

Let applicants know that providing recent, accurate documentation will make the process faster and easier, avoiding the need for follow-ups and additional document submissions. 

Quick submission on their end avoids rescheduling movers or finding temporary housing if delays are substantial. And fast processing means no adjusting move-in dates and taking the hit from vacancy costs. 

Work with the Best

Tap into available technology to streamline the process from end to end. The right technology partners allow applicants to submit their documents easily and get their proof of employment documents verified quickly and securely. 

Stay Compliant

Whether you partner with a third-party service or do it on your own, make sure you’re aware of and in compliance with laws and regulations.

The best technology partners are legally compliant with federal, state, and local laws. They handle sensitive data securely and without violating privacy. 

Educate Applicants

Having to go through the application process, get proof of employment, and wait to be approved can seem like a nuisance for applicants. That’s why you should educate them on why you need accurate documentation and how it ensures a better rental experience for everyone on the property.

Common Challenges in Obtaining Proof of Employment 

Any process that involves sensitive documents has its share of challenges. Some applicants may be reluctant to provide these documents due to previous bad experiences with insecure processes.

Partnering with trusted verification companies with robust and transparent security practices can help alleviate these fears. 

Another challenge? Employer delays.

Employers may take a long time to respond to a manual request which means writing a custom letter. Or they might refuse to provide sensitive information over the phone or via email. Some will only work with a third-party service. 

Verifying employment through an established system is much faster and easier, but it usually costs more and requires the applicant’s consent. 

Even with a higher cost, income verification software saves countless hours of manual review and may pay for itself quicker than you think. How? By identifying tampered or fraudulent documents, flagging potential bad tenants, and removing them from the process.

There’s also the challenge that comes with the complexity of an applicant who’s self-employed, a contractor, or part of the gig economy. Income is more likely to fluctuate, and some traditional forms of proof of employment aren’t available.

In this case, you can rely on a combination of tax returns, 1099s, and bank statements to verify financial stability. 

When to Use Employment Verification Services 

An employment verification service can vastly improve a tenant screening process delayed by manual verification or lax enough to allow bad tenants to slip through with fake documents. 

Potential offenders are immediately flagged and removed, avoiding lengthy, expensive evictions and other associated costs. 

On the surface, manual verification is the most cost-efficient option. But when you factor in the time it takes to manually verify, it’s not the most effective solution.

It’s challenging to scale employer outreach and review documents by hand if you’re managing a large property. Plus, some employers have strict privacy policies and will only work with established services. 

Employment verification services are more secure than a locked office filing cabinet, and they’re faster and better at fraud detection. Why? Because they can compare database search results with payroll records or other documents.

Using professional services also ensures compliance with fair housing requirements and FCRA. 

Making the switch can be well worth it given the time saved on manual reviews, the peace of mind applicants get from a secure process, the money saved on legal compliance, and the ability to avoid expensive evictions. 

A Better Process for Everyone 

Verifying proof of employment is an essential part of the tenant screening process, and finding the right technology partner to streamline it improves the experience for everyone involved. 

An income verification partner can make sure nothing slips through the cracks—helping you create a more thorough screening process. By partnering with a provider like Snappt, you can implement these strategies and ensure you get reliable tenants who can pay their rent.