How do you feel about tip affidavits as a form of income proof? In the past we have not allowed as a form of proof but open to it potentially. Thoughts?
They should be claiming their tips so they will have proof on their pay stubs or tax returns . You don’t need an affidavit for that. And if you really want to use one, have it filled out by their manager .
1 year 9 months ago#638990by Gabrielle Christine Marchetti
I have been in the hair industry for 12 years. I promise you not everyone claims the tips but they make the money. What they have between them and the irs as far as claiming tips is their business. But a tip affidavit is a adequate representation of what they make. More than half of our income is derived from tips.
Morgan Brown I'll agree that many people don't claim their tips. That said it is a bit weird that you'd consider renting to them when their main argument to rent to them is that they are committing a crime and that crime makes their income appear lower than it actually is.
The cash has to be going somewhere. You can’t make rent, car or utility payments with cash. We had a tattoo artist. We had them provide a letter from shop that he was paid in tips and that he paid his space rent on time. Then had them provide cash app documents showing his tip transactions. You have to have a trail to follow. Anybody can say they make anything
Katy Schmidt not the letter from employer because we were just using it to prove that he was a tattoo artist at a shop. Cash app actually had statements that looked like bank statements so it had his name and dates
Katy Schmidt What is the advantage of having it notarized? Is there even the slightest concern that the signature wasn't actually signed by the person it claims to be?
If they flow the funds through a bank account and report to the IRS then you can use the bank statements and tax returns to qualify the income. If they are keeping the money all off book and committing tax fraud, what makes you think they will respect your lease?
Katy Schmidt I'm just not sure I see any advantage to that. Affidavit is just a fancy word for someone scrawling with crayon "I swear I make $500,000 a year." on the back of a napkin and signing it. That is an "affidavit". Just because someone uses an official or less common word to describe something, doesn't increase the chances that it is authentic.
Yep, done it! But, I only allowed it be a percentage of income. I allow for “other income” it has to be documented, to the extent that it can. 20% or less.