How to Make a Proof of Income Letter Correctly
Proof of income letter will help you get to the next step in the rental application process. Landlords need some proof of income before approving you to move into your next apartment. And this official document is an easy way to verify your employment status and other relevant information that the landlord may require.
With such a document, you can prove your employment and show your income, like your annual salary, basic monthly income, or even your hourly wage. Also, with a salary verification letter, the landlord might see other income details, such as if you are an employee of a particular business or self-employed.
It is a key tool, and here we will help you to understand the process, its purpose, and how you can write a correct proof of income letter.
What is a Proof of Income Letter
Proof of income letter is an official and formal letter confirming if an individual currently works for a certain company or business or has previously worked with them.
It provides contact information for the recipient, your name and the company you are working for, your job title, dates of employment, and your contact details. Usually, people write income verification letters on official company letterhead, and they print physical copies of them.
They mostly serve as one component of a larger overall background check that organizations and companies will conduct to confirm some details about an employee. Such details will range from salary information to work history.
The different types of letters will commonly go by the following names:
Proof of Income Form
Income Letter
Sample Income Verification Letter
Employment Verification Letter
Employment Verification Form
Why You Need to Have a Proof of Income Letter Template
With proof of income letter, you can provide official documentation that you worked for someone in the past or that you are currently working for them. It is also personalized based on your medical coverage status, Supplemental Security Income, and Social Security benefits.
As an employee, you may require to write this letter to use it as evidence for the following:
Getting a Loan Approved: If an employee requests a loan from a bank, they will need an employment letter or some sort of income verification to confirm that they will be able to pay back with their salary.
Signing Leases: The lease issuers may want a proof of income letter to check if the employee can pay to uphold the lease.
Obtaining a Credit Card: To get a credit card, you will need proof of income to check if you can pay back the debt whenever needed.
Purchasing or Renting a New Home: Applying for a mortgage to purchase a new home will require you to have a proof of income letter to check that you can make these payments.
Applying for Another Job: As an employee, you might need a proof of income letter for your next employer to confirm your past and current salary.
What Are Landlords Looking For When They Ask for Employment Verification
Your potential landlord will check references from past landlords to ask about your character and payment history. The new landlord might want to verify your income and employment. They will check if you actually work for the company you proclaimed and that you earn the annual salary you’ve stated.
Landlords won't pry into your personal life. They are only interested that you will be able to pay up. They will confirm the company you work for and if the contact details are correct. They will use your income letter to check the company's name and contact information. The landlord will usually contact the HR department first and let them know they are a landlord looking to confirm their prospective renter's income information and employment status.
You might need to sign a written request to confirm your employment verification for your potential landlord. Your employer will require your written consent to give any information the landlord requires.
How to Write Proof of Income Letters
To write an effective and correct proof of income letter, there are several topics you need to include. These are the following:
Recipient Information
To start making your proof of income letter, you should begin writing out all the information regarding the recipient.
You have to place this information at the very top of the letter. In this section, include your full name with your official job title, the name of the organization or company you are working for, the address of such company, a direct phone number to contact you, and the date when you wrote the letter.
Employee Work Information
This section holds the bulk of the content. You can detail all your work history as an employee and your employment information.
Here, you will include your job titles, employment status, how much you have been working in the company, your typical work schedule, your usual salary or wage, and the basis on which you receive your payment. You may also include any information regarding commissions or bonuses you may receive.
Employer Contact Information
It is highly required that you include your employer’s contact details in the proof of income letter so it can be contacted whenever any doubts arise regarding your work history.
Some of the contact information will include the employer's name, employer title, direct phone number, email address, and company address.
Self-Written Income Verification Letter
A self-employed person will have no choice but to make the proof of income letter by themselves. A self-written letter has the same purpose as any done by your employer.
It will also allow you to add any additional sources of income if applicable. Of course, you must attach any document proving these income sources. You may need to state all the information in full detail, and it may have to be notarized. Although, ultimately, it will depend on what the requester requires from you.
Another alternative is to write the verification letter yourself and have your employer sign it. Whenever you do this, ensure you print out the document using letterhead.
Verification Letter Written on Your Behalf
If you decide not to write the proof of income letter yourself, you can always request it from your employer. Usually, you will have to state the reason why you need a proof of income letter whenever you request it.
If the employer agrees, it would be on letterhead and usually with a company seal to make it look more official.
The letter will contain important information, as we have already discussed. It also should be best to ask for the past two pay stubs. If they aren't available, you can request a bank statement from your previous month as an employee.
Lastly, the one who issues the letter will conclude with their contact details and the employer's signature.
Check These Free Templates to Write Your Own Proof of Income Letters
Now that you know all the details regarding proof of income letters, you are ready to write one of your own.
To give you a head start on the making of proof of income letters, we will provide you with several templates available to download for free. The only thing required is to have Microsoft Word installed on your PC.
If you need a CD key for Word, you can purchase one at a low price in the RoyalCDKeys store. You will get the latest Office package version, including programs such as Excel, Outlook, Access, PowerPoint, and more.
Basic Proof of Income Letter Template
This simple template gives you the basics of making a proof of income letter. It is a step-by-step template of how it should be done, although it lacks style.
You can download it from ApartmentGuide as a Word document.
Simple Employment Verification Letter Template
This template is a bit more stylized than the previous one. It is set to look professional, simple, and direct to the landlord, with options to mark how much you earn and how frequently.
Employment Verification Template
This template is divided in half, with fields to be filled by both the employee and the employer. The first half is your written consensus to allow the employer to release information about your work and employment, while the rest will be your work details.
Salary Certificate Template
This template is divided into three sections. In the first one, you have all your contact details and your employment status. The second would be your salary details and income. The third one needs to be filled out by the employer as authorization from the company.
Key Takeaways
Getting a proof of income or verification letter is quite simple, as you could do nothing rather than just request it from your employer. They usually follow a fixed template (like the ones shown above).
But if you decide to write one of your own to save some time or be ahead whenever you need it, you can use any of the templates provided, together with everything you learned from this article, to make a correct proof of income letter.