How to rent an apartment when you get paid in cash?
Let's just say I get paid in cash... I make tons of money but my credit isn't so great. I've paid off all the negatives on my credit report, but it's still there and will still look bad with the landlord. I also get paid in cash and that's my only income till I move. But I plan to move 3000 miles away in September, where I already have a badass (vanilla) job and a boyfriend waiting for me. Plus a large group of friends. I get paid in cash and then when I move, I will continue webcamming as a source of income. I have an account with Streamate but I don't particularly like webcamming and have been doing something else to save up more money, faster. But my problem is that I do get paid cash and have no proof of employment. I have been adding a lot of money to pre-paid debit cards, every friday I put a large chunk on my debit card, after i budget my money. I could happily show my debit card statement to a landlord, plus I could offer to pay 3 months rent plus sec dep. to move in. Does anyone know the best way to prove employment when I get paid in cash? I just started this job in April.
Re: How to rent an apartment when you get paid in cash?
Showing bank statements should work. Also, you could get your boss (from the webcam company) to send you a signed letter saying you are an employee and how much you make a month. Then go to a bank and get the letter notarized for your signature (you will have to sign it at the bank in front of them so do not sign it beforehnd). Also, you could ask your future employer (the badass vanilla job) to send you a letter saying you have a job lined up and get that notarized.
Re: How to rent an apartment when you get paid in cash?
Where lenders of all kinds are concerned, new regulations require that the incomes of prospective borrowers now be 'verified'. Since an apartment lease ( or auto lease ) is a form of loan, income 'verification' requirements now apply to those as well.
For people who are legally considered to be employees, i.e. receiving regular paychecks with income taxes withheld by the employer, paycheck 'stubs' and/or an official letter from the employer stating the employee's regular paycheck interval and size, are sufficient for income 'verification' purposes. Unfortunately, 'self-employed' dancers and camgirls who do not have an employer / employee relationship with their clubs and webcam hosts, and whose future earnings can very widely, have a different standard for 'income verification' - that of any business owner.
The only 100% acceptable forms of 'income verification' by business owners are past IRS documents i.e. tax returns, 1099's etc. But a generally acceptable form of 'income verification' for business owners are bank statements showing regular additions to a business account. Your debit card statement showing a couple of months worth of regular 'deposits' should be acceptable verification of income to most landlords.
As to already being committed to moving 3000 miles away, informing a local landlord of that fact that, 6 months from now, he must again spend money to advertise for a new tenant, probably isn't the best idea.
Re: How to rent an apartment when you get paid in cash?
I would also suggest trying to find apartments that are run by families or individuals and not corporations.
Locally owned apartment complexes are more flexible and understanding generally. Apartments run by corporations have a list of hard rules. The person you are talking to doesnt make the decisions. So there is no give on the rules. Unless you have a large amount in the bank.
Re: How to rent an apartment when you get paid in cash?
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So there is no give on the rules. Unless you have a large amount in the bank.
Ultimately, this is the way around 'income verification' requirements for self-employed persons dealing with 'corporate' landlords. Paying 6 months rent in advance, plus security deposit, eliminates the 'loan' aspect altogether ... thus the need for credit check and 'income verification'.
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I would also suggest trying to find apartments that are run by families or individuals and not corporations.
Indeed the case ... because individual owners have the freedom to ( from a legal standpoint ) rent month to month without requiring the signing of a 6 month lease, thus avoiding the 'loan' aspect and the need for credit check and 'income verification' by a different method.
Re: How to rent an apartment when you get paid in cash?
Thanks, ladies. I do plan to have 3 months rent plus security deposit for a potential landlord. But it's an expensive city to live in. so having 6 months rent would be pushing it. But I would gladly pay 3 months increments at a time. I'll figure it out and my bf will help me get situated but at this time, I have no interest in living with him, so that is out of the question. I plan to get a studio or 1 br apt to share with my small poodle. =)
Re: How to rent an apartment when you get paid in cash?
Goo luck- sounds like you have a handle on it.
Re: How to rent an apartment when you get paid in cash?
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I do plan to have 3 months rent plus security deposit for a potential landlord.
Unfortunately, if corporate landlord policy won't go any shorter than a 6 month lease, this may not get you 'over the hump' in regard to income verification requirements. It should be enough to convince private landlords though.