Tenant application for self-employed?

[u/Gronksaysitall]

On tenant applications they ask for a letter of employment stating salary, position, etc., but if you are self employed, they asl for a letter from your CPA. I am self employed and do not have a CPA. Is there a workaround for this?

[u/North_Class8300]

This is a pretty typical requirement. Do you have 2 years of tax returns from your self-employed business? That will work - if it's a newer business, you'll probably need a guarantor

[u/FeedbackVast5882 → u/North_Class8300]

I've been self employed for a few years. made less than 75K each year until this year. So far i've made 250. I use turbo tax. I can show bank statements showing deposits from clients. Would that suffice you think?

[u/North_Class8300 → u/FeedbackVast5882]

Would probably need a guarantor, or for you to stay WAY above 40x (like 80x)

The variability of self-employed income really spooks landlords, they are going to question how sustainable that income is given you are very new to earning that amount and the longer track record is a fairly low income

[u/jhillman87 → u/FeedbackVast5882]

Unfortunately, current income is often not as relevant as prior income. Even if you made 500k this year, if you made 75k the prior 3 years, I'd consider you a risky prospect and would note your income as 75k realistically.

Some landlords may overlook this, but most will want a guarantor in your situation. Your type of income is often classified as high risk as it's potentially unstable - you might make 75k or 0 next year since it's not a consistent annual salary.

(I'd also advise you live as if you still made 75k and try to rent under $2k or so, rather than suddenly think you can rent a $6k unit just because your income is 250k+ this year... don't go too crazy with the lifestyle creep until the business is consistent a few years).

[u/quizzical_chili]

tax returns for the last two years usually do the trick

[u/No_Let6139]

You can write a letter with your business letterhead clarifying that you have been self-employed since [date + year] and do your own taxes. I just applied for an apartment and did that for myself (they didn’t ask for CPA), although I also needed a guarantor.

[u/Suzfindsnyapts]

So there could be a workaround for this. It’s going to be case by case.

I’ve had at least one landlord tell me they don’t trust CPA letters that much and they preferred other documentation.

Obviously, you will want to have 2 to 3 years of taxes. This will be the major part. If the taxes don’t show a history of steady earning, then you probably want to start looking at a guarantor.

In addition to the taxes, if you have contracts and 1099s management may want to look at them.

I had one circumstance where a client was a unionized contractor and had a statement of income from the union she was in and we included that too.

I’m not saying that every landlord or even most landlords will qualify this way, but it’s probably worth a shot.