Employment verification template [FREE]: A property management must-have

As a property manager, ensuring a prospective resident can afford monthly rent is, without a doubt, one of your top priorities when letting a property. And rather than taking their word for it, verifying that information in writing and with a reliable third party is the best (and only) way to go.

An employment verification letter will help confirm that a candidate has the income to cover all the necessary expenses related to a rental. It will also allow you to rent the property confidently, giving you and the owner peace of mind that the tenancy is off to a good start. 

Read on to learn all about employment verification letters and get our handy template to speed up your next application process.

What is an employment verification letter? 

An employment verification letter is a document used to corroborate an individual’s employment history and status, salary, or current title, among other details, with their current employer. Owners and property managers use it to obtain formal confirmation of a prospective tenant’s income to ensure they can afford to pay rent, deposit, maintenance costs, and other expenses related to the property.

Having an employment verification template can help property managers streamline the application process and make it less time-consuming. While in many cases, the candidate will give you a standardized employment verification letter they got from their employer, having your own template is an excellent way to ensure you consistently get all the information you need, including details more specific to your property or prospective tenancy agreement. 

When and why should you make an employment verification request? 

Like tenant background checks, employment verification letters are essential to the rental application process. They are a valuable tool for property owners and managers because they verify the candidate’s identity with a reliable source and assess their financial suitability, giving insight into how stable and reliable their income is. 

A perfect complement to tenant credit checks, employment verification requests are vital to making an informed decision on who your next tenant will be. They also minimize the risks of future complications, such as unpaid or late rent, paving the way for a stress-free tenancy.

When it comes to timing, the right moment to send out an employment verification letter is after the prospective tenant has completed their application and you are sure they meet your tenant pre-screening criteria. But remember: while you have the right to check a candidate’s employment history and information, prospective tenants must give explicit permission. Be sure to mention it on the rental application, detailing that the candidate consents to employment verification by signing the form. When it’s time to contact their employer, let them know in advance to keep them in the loop.

What to include in an employment verification template

When creating a template for your employment verification letter, less is more. Keep things simple, and remember that this is a formal document that needs to be concise and straightforward. 

After stating your details and those of the candidate’s employer, write a short introduction to explain the purpose of the note and make a list of the information you need to confirm. Finish by thanking the candidate’s employer and mentioning where to send the completed form and by what date. 

Make sure you ask for:

• Employment dates/duration of employment 
• Employee job title
• Employee job description
• Employee current salary
• Any additional information the employer deems relevant to the purpose of the letter

💡Pro tip: Remember to limit your requests to employment-related matters and avoid enquiring about personal or sensitive information, such as illnesses or sick leave.

Employment verification letter template

From: 

[Your name]

[Your address]

[City, State, ZIP code]

[Date]

To: 

[Employer's name]

[Employer's address]

[City, State, ZIP code]

Dear [employer's name],

I am writing to verify the employment status of [prospective tenant's name], who has applied for a rental property at [property’s address]. As part of our rental application process, we require confirmation of [tenant's name]'s employment and income.

Please confirm the following information regarding [tenant's name]'s employment:

• Employment status: Is [tenant's name] currently employed by your organization? Yes/No
• Job title: What is [tenant's name]'s job title?
• Salary: What is [tenant's name]'s annual salary?
• Duration of employment: How long has [tenant's name] been employed by your organization?
• Please provide any additional information that may be relevant to [tenant's name]'s employment status.

Thank you for your prompt response. Please return this letter to me at [your email address] or send it to [your physical address] by [date]. 

Sincerely,

[Your signature]

[Your name]

Employment verification best practices

Keep it short and sweet

In most cases, someone from the employer’s HR team will complete and reply to your request, but remember that your letter is just one task on their lengthy to-do list. Because you want things to progress quickly and the rent application process to be as brief as possible, make sure your template goes straight to the point, is clear, and doesn’t ask for any additional information that may be difficult to obtain.

Don’t rely solely on payslips

Payslips alone are insufficient to assess and verify a prospective candidate’s financial health. While they can be an indication of their liquidity (especially if you ask for a few rather than just a couple), any experienced property manager will know that payslips can be faked easily. Leave payslips as supporting documents and liaise directly with the prospective tenant’s employer for a reliable check.

Have a strategy for self-employed candidates

Many prospective tenants don’t hold permanent positions with a company and, instead, are contractors or freelancers. In these cases, you must check their financial viability through other means. Ask them to provide several months’ bank statements and work out their average monthly income to understand whether they can afford rent and expenses. Tax returns or business income statements can also be helpful to assess a self-employed candidate’s financial health.

Keep records safe

Maintaining accurate records for each candidate will help speed up the application process and keep things running smoothly. However, you must always remember that you are handling sensitive, confidential data that must be stored securely. Make sure you use approved devices and platforms to keep and share electronic data and delete information that is not needed. The same applies to paper records, which must be stored safely and destroyed securely once they are no longer required.

Verifying a prospective tenant’s employment is not just another step in the rental application process––it is a tool to give you peace of mind when renting out a property. And while it can be time-consuming, it can also be key in helping you pick the right candidate.

At Minut, we not only want to protect your property portfolio––we also want to help you optimize your time so you can focus on what matters. Our employment verification template can help you streamline the rental application process, freeing up your schedule to concentrate on other priorities.

Looking for more tools to make property management more efficient? Learn how Minut can help.