When it comes to finding housing, income requirements are a common hurdle for many renters. Most apartments require you to have a gross monthly income equal to 3x the amount of rent—a standard that disqualified about 50% of renters in 2024. At PadSplit, we take a different approach to make housing accessible.
Yes, PadSplit verifies income, but instead of requiring 3x the rent, we use your current income to determine a weekly rate that fits comfortably within your budget.
If you’re considering becoming a PadSplit member, you might be wondering what our income verification process looks like. Here’s a quick breakdown of everything you need to know.
Why does PadSplit verify income?
Unlike traditional rentals that ask for security deposits, run hard credit checks, and dig through your financial past, we focus on your current income. Our goal is to ensure you can comfortably afford your weekly payments without stretching yourself too thin (and still saving money in the process).
Once your income is verified, we’ll approve you for a room rate that lets you live where you want and save money for your future. Whether you want to pay off debt or save for a house, it’s possible when you move into a room for rent with PadSplit.
On average, PadSplit members save about $317 per month compared to a traditional rental. Over time, those savings grow into something bigger—thousands of PadSplit residents have started businesses, become homeowners, and paid off their college loans. Read their stories here.
What counts as income?
Good news: PadSplit accepts income from more than just a traditional 9-5 job. Whether you’re self-employed (about 9.95 million American workers don’t report to a boss), working part-time, or receiving government assistance, your income can qualify.
Acceptable income sources include:
- Employment (part-time or full-time)
- Government benefits (unemployment, disability, Social Security, etc.)
- Self-employment income
- Recurring deposits (such as child support, alimony, or regular family support)
Can I combine forms of income?
Yes! If you’re working multiple jobs or have income from different sources, you can combine them on your application. With 72% of U.S. employees reporting they rely on at least one supplemental source of income, this is a common request.
To verify multiple income streams, all you need to do is upload supporting documentation for each source. This helps us get a complete picture of your financial situation.
What if my income varies?
Many workers outside of a traditional 9-5 don’t get paid the same amount each week. If your income varies, that’s okay. We can still determine a room rate that works for you.
We calculate your room rate by averaging your income amounts. For self-employed or gig workers, we require three months of documentation; for all other workers, one month is sufficient.
What is PadSplit’s income verification process?
Our income verification process is designed to be flexible and accommodating for applicants in various careers, walks of life, and financial situations.
To accomplish that, we offer two different options for verifying your income.
1. Automatic verification with Plaid
The quickest way to verify your income is with Plaid, a secure service that links directly to your bank account.
Plaid is a widely-used encrypted technology platform trusted by banks and major apps, such as Venmo and PayPal. Over 50% of Americans with bank accounts have already used it.
When you connect your account to Plaid, it automatically detects recurring deposits to confirm your income. No paystubs, no paperwork, and no added hassle required. The best part? It also speeds up your application process, so you can move into your furnished room sooner and start focusing on your goals (as we cheer you on!).
To give you extra peace of mind, we don’t store your bank login information. Plaid uses secure, bank-level encryption to protect your data, so you can connect your account with confidence. Your information remains protected every step of the way.
2. Uploading a few important documents
Another option for verifying your income is by uploading the right documents. These include:
- Pay stubs from your employer
- Bank statements showing regular deposits
- Deposit records for independent contractors
- Award letters for Social Security, disability benefits, or other assistance programs
Once you upload your documents, PadSplit’s team will quickly review them to determine your approved room rate. This option for verifying income is great if you receive cash payments, are self-employed, or simply prefer not to use Plaid. We want renting to be on your terms, even with the application process.
What if I’m unable to verify my income?
If you don’t have income documentation or are currently between jobs, you may still qualify for PadSplit membership through an upfront payment. This flexible option helps members secure housing even without traditional income documentation.
With a 12-week rent term, just tell us the weekly rate you’d like to pay, and we’ll multiply it by 12 to calculate your total. Once payment is complete, you’re officially approved and can book any room within your approval amount.
Currently, this option is only available in select cities. Email documents@padsplit.com to find out if it is available in your area.
How long does verification take?
We strive to make your application process as quick and easy as possible. Here’s what you can expect:
- Verifying your income with Plaid is the quickest option, often offering instant verification and speeding up your application process.
- If you submit documents manually or we need more information, verification will most likely take 2-5 days.
What’s my maximum weekly rent?
PadSplit calculates your maximum weekly rent based on your verified income and your source of employment.
- For W-2 workers and independent contractors (1099 workers): Your weekly rent cannot exceed 50% of your verified weekly income
Example: If you receive $600 per week from a W-2 job, your maximum weekly rent would be $300 per week.
- For Social Security income recipients: Your weekly rent cannot exceed 66% (two-thirds) of your weekly income.
Example: If you receive $600 per week in social security income, your maximum weekly rent would be $400 per week.
These rent limits are designed to ensure you can enjoy living in our secure housing while still having plenty of financial flexibility for saving, paying off debt, and other expenses. That financial breathing room makes a real difference and is why 72% of our members have been able to pay off debt.
What happens after I’m approved?
Congratulations on getting approved for PadSplit! Once you’re approved and have a maximum rate assigned, you can start looking for a room that meets your rate and lifestyle needs.
Some hosts like to review your room booking request before accepting it to make sure you’re a good fit for the home. This requirement will be clearly marked on the booking process.
Once your booking has been approved, you’ll receive a confirmation email, and your payment will be processed. You’ll receive an email with the move-in instructions on the morning of your move-in day.
Frequently asked questions
Does PadSplit check credit?
We may take a peek at your credit history, but don’t worry – your credit score will not impact your Membership approval.
Will it affect my credit score?
No. PadSplit uses a soft-pull credit check that doesn’t impact your FICO score.
Do I need a co-signer?
No. PadSplit doesn’t require co-signers.
Can I reapply if denied?
Yes. If your application is denied, you can reapply. PadSplit will explain the reason so you can address it in a new application.
It’s time to move in and move up
At PadSplit, we believe everyone deserves access to quality housing, no matter where you’re starting from. If you’ve been turned away by traditional income requirements, we offer a different path forward. Our income verification process is just one way we remove barriers and make it easier for you to find housing that fits your budget and lifestyle.
Ready to get started? Thousands of rooms are available in major cities like Atlanta, Houston, and Tampa—with new rooms added every week. Visit PadSplit.com today to join more than 70,000 members who’ve found stability and savings, and move in as early as tomorrow!
