Apartment for a self-employed (rental, good credit, home)

[Ronaldon]

Hi,

Quick question for the experienced ones. I'm self employed and I have good credit (745). I make 8-12k per month before taxes. How do I get approved for an apartment? Do I just send a month's bank statement, showing that I get paid into my bank account at least 8k a month? Or will that not be enough?

I'm searching for a 1BR around WeHo/Hollywood for about 1.5k/month, and I don't want to start paying $30 for applications just so that all of them would get denied. Any advice on how to approach this?

Thanks!!

[adr3naline]

You may be asked to show bank statements for the previous six months of work. What line of work are you in? Do you use invoices which could also be used to predict the next six months of your income?

Lot of self-employed people in LA, so I can't imagine your apartment hunting situation will be more than a minor annoyance.

[brrabbit]

Good credit score usually makes need for any other proof of income unneeded. Double or triple of security deposit, makes any concerns of landlord to go away.

[brrabbit]

And I'm not an accountant, but if you make 8-12K per month, you might want to consider forming LLC (or S-Corp) and start paying yourself a minimal salary with W2 (and treating "company profits" as investment income which is taxed at lower rate).

[CALGUY]

I inform all perspective tenants that they must submit a current credit report along with the credit score.
If the perspective tenant is self employed, I require tax statements, and bank statements.
Also, if they are self employed, they can't operate their business out of their rental unit, they need an office where it is zoned for business.

Bob.

[PDF]

Originally Posted by CALGUY

I inform all perspective tenants that they must submit a current credit report along with the credit score.
If the perspective tenant is self employed, I require tax statements, and bank statements.
Also, if they are self employed, they can't operate their business out of their rental unit, they need an office where it is zoned for business.

Bob.

Wow.

[No_Recess]

Are you not paying taxes?

[disgruntled la native]

Originally Posted by PDF

Wow.

That's not extreme at all. Except the last part maybe a little, if the guy is just staying at home with his computer. If he's running it as an office with clients coming in and out all the time, I can understand.

[Dunbar42]

Originally Posted by brrabbit

And I'm not an accountant, but if you make 8-12K per month, you might want to consider forming LLC (or S-Corp) and start paying yourself a minimal salary with W2 (and treating "company profits" as investment income which is taxed at lower rate).

Even if this were allowable in the tax code (which I doubt) the problem would be using company income to pay for personal expenses like rent, utilities etc.

And yes, I got a little prodding by a management company when I mentioned that I worked from a home office. No customers ever set foot in my apartment. I believe they aren't insured for kind of issues a business would encounter in addition to the aforementioned zoning laws.

[brrabbit]

I did not advise on paying for personal expenses with company money (even though there could be legit deductions for home office, and such). I said you could've give yourself a paystub and save on taxes by classifying some of your income as "dividends" for which you can have lower income tax and no payroll taxes.

But you need to ask a professional on it, not someone on CD