CREDIT REPORTS CAN HELP YOU UNDERSTAND HOW SOMEONE HANDLES CREDIT OBLIGATIONS, BUT INCOME IS WHAT DETERMINES WHETHER RENT IS SUSTAINABLE.
WHY CREDIT REPORTS ARE NOT ENOUGH
Many landlords begin tenant screening with a credit report, and it is a valuable tool for evaluating payment behavior. But credit reporting has a major limitation: credit reports do not include income. That creates a problem. A tenant can have a fair or even good credit score, but still not have the income needed to support the rent. Another tenant may have limited credit history but strong, stable earnings. Without verifying income, you are missing a crucial part of the tenant’s ability to pay. Credit reports can help you understand how someone handles credit obligations, but income is what determines whether rent is sustainable month after month. IRS Income Verification helps landlords close that gap.
IRS INCOME VERIFICATION PLUS EMPLOYER CONFIRMATION: THE FULL PICTURE
IRS Income Verification is strongest when used alongside a call to the tenant’s current employer or current income source. Each method plays a different role:
Employer confirmation helps validate current employment status, position, and current pay schedule. This can be done by calling the current employer or adding an employment verification to your AAOA tenant screening order for $15.
IRS Income Verification helps validate what was actually earned and reported in previous tax years.
This pairing is important because employer checks alone may not capture total income when a tenant has multiple jobs or receives income from contract work. And IRS records alone do not tell you whether the tenant is still employed today. Together, they provide a more complete and more reliable view. For landlords, the goal is simple: fewer surprises after move in. When income verification and current employer confirmation work together, it is much harder for an applicant to exaggerate income or misrepresent stability.
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