Employment Verification is an important part of the tenant screening process because it’s a way of ensuring that the rental applicant can afford to pay rent as they’re due. In essence, it helps you avoid financial hassles and money issues, which are the most common causes of tenant-landlord disputes. Furthermore, checking the potential tenant’s employment details as part of your standard tenant background check procedure can reduce the possibility of executing time-consuming and costly evictions.
Additionally, this tenant background screening procedure is a way to verify the accuracy and truthfulness of the applicant’s disclosure regarding his/her employment status and wages. An employment verification process includes looking into the applicant’s pay stubs for the last several months as well as W2s tax documents to assess long-term financial stability.
An employment verification report may contain the following information:
- Employment duration;
- Job position(s) in the company;
- Pay or wage level, if possible;
- Job performance and professional conduct;
- Other employment-related information.
Take note, however, that some employers may disclose minimal or no information about an employee due to some legal implications.
Furthermore, the employment verification process is also applicable to prospective tenants who are self-employed or engaged in the gig economy. Bank statements and Form 1099 tax documents can serve as proof of income and financial stability of the individual in question.