What is a Certificate of Rent Paid?

Nobody actually likes tax season. But one good thing that comes out of it is getting money back. Some states let renters claim part of their rent on their tax returns. If you’re a landlord in one of those states, you’re the one who has to make that happen.

A Certificate of Rent Paid is a form that documents the amount of rent your tenant paid over the year.

The form itself is fairly short and easy to fill out, but landlords who don’t know about it tend to find out the hard way, usually when a tenant calls in January asking where their CRP is and threatening to report them.

Let’s avoid that.

What is a Certificate of Rent Paid? 

A Certificate of Rent Paid is an official record of how much rent a tenant paid to a landlord over the past year. It’s sometimes called a “rent paid affidavit” or a “rent certificate” and includes information such as your tenant’s name, the rental address, and the total rent paid during the year.

Landlords are supposed to provide this document to tenants as proof of rent paid. Not doing so would make those landlords non-compliant with state laws.

Tenants can then use the CRP to claim a renter’s tax credit or property tax refund on their taxes. Tenants can also use this document to show proof of their rental payments when applying for rent assistance programs and loans.

Who Needs a CRP?

If you own or manage residential property in a state that mandates CRPs, you are legally obligated to provide one to each adult tenant residing in the home, and failure to do so can lead to penalties.

Renters who live in states that offer a renter’s tax credit or property tax refund will need a CRP to claim their benefit. Without it, eligible tenants could miss out on hundreds of dollars of tax relief.

This is why states like Minnesota have strict deadlines and penalties for landlords who fail to provide the CRP on time.

Even in states without a formal CRP requirement, tenants may still ask for written proof of rent paid, such as a letter or receipts, if they plan to apply for local rent rebates or need documentation for other purposes.

Steps to Create a Certificate of Rent Paid

A CRP form’s exact requirements can vary state by state, but in practice, the steps to create one are virtually the same.

Complete the CRP Form

The first step will be to obtain the proper CRP form for your state if one exists. Many states with renter credit programs provide an official form on their Department of Revenue website.

All you need to do is type in “[Your State] CRP form” into Google.

For example, if you typed “Minnesota CRP form” into Google, the first link will take you to their “Create a Certificate of Rent Paid” page, where you can, as the title suggests, create a CRP.

Next, fill out the form with accurate information. Make sure to include:

• Tenant information, including the renter’s full name (each adult renter will get their own)
• Landlord information, including your name or business name, address, and contact phone number. You might also need to give your Employer ID Number (EIN) or Social Security Number on some forms.
• Property details, such as the type of property (apartment, single-family home, etc.) and address
• Lease period
• Total rent paid for that year
• And finally, make sure to sign and date the form

Verify the information 

Before submitting the CRP, double-check that all the information is correct, because even the smallest, tiniest error can cause major problems for your tenant when they file their taxes.

Verify that the rent amount on the form matches your payment records for that tenant. Check the spelling of the tenant’s name and the address. Confirm that the tenancy dates and the number of months are correct.

It’s also a good idea to review any special instructions provided by your state’s tax authority.

Finally, sign the form if you haven’t already and date it. Then, make a copy and keep it for your records.

Give the CRP Form to Your Tenant

Once the form is completed and checked, you’ll need to give it to your tenant by January 31st.

You can deliver it to them in person, mail a copy to their address, or, if you use email or a tenant portal to communicate with them, send it electronically through there. A PDF copy is highly recommended because it’s fast and shows a digital trail. If you mail it, you’ll probably want to include tracking or a confirmation number.

How to Use a Certificate of Rent Paid for Taxes

It can be helpful to know what needs to be done from the renter’s side of things in case your tenants ask you any questions.

When it’s time to file their taxes, tenants who want to claim the renter’s credit will need to complete a section of their state tax return using information from the CRP, such as the total rent paid and property details.

Before submitting, they should double-check that the information is accurate and that what they typed matches what’s on the CRP.

When submitting a paper return, tenants should include a physical copy of the CRP. If they’re filing their taxes electronically, they should include the CRP certificate number.

Lastly, they should always keep a copy of the CRP with their tax documents (and you should have a copy as well).

The Bottom Line

The Certificate of Rent Paid may take about 10 minutes to fill out. You document what your tenant paid, include some information about the property, sign it, submit it, and hand it over to them by the deadline.

And besides, for such a small task, it can make a huge difference financially for your renters.