 Income requirement (by Patricia [IA]) Mar 31, 2015 9:16 AM
 Income requirement (by S i d [MO]) Mar 31, 2015 11:16 AM
Income requirement (by SharonG [SC]) Mar 31, 2015 12:06 PM
Income requirement (by Barb [MO]) Mar 31, 2015 12:09 PM
Income requirement (by John... [MI]) Mar 31, 2015 1:28 PM
Income requirement (by SharonG [SC]) Mar 31, 2015 2:54 PM
Income requirement (by Patricia [IA]) Mar 31, 2015 3:20 PM
Income requirement (by John... [MI]) Mar 31, 2015 3:57 PM
Income requirement (by shawn sisco [MO]) Mar 31, 2015 4:02 PM
Income requirement (by BRAD 20,000 [IN]) Mar 31, 2015 8:18 PM
Income requirement (by patricia [IA]) Mar 31, 2015 8:25 PM
Income requirement (by Patricia [IA]) Posted on: Mar 31, 2015 9:16 AM
Message:
Was just wanting others' opinions as far as applications' income requirement.
We have a 2X's rent amount, net monthly and usually have a leeway with fifty. (i.e. rent - $575; require. $1150 - $1100).
1) Should I have that leeway with the fifty?
2) Someone coming in $50 below leeway of $1100, to avoid a liability, should still deny? Have to cut off the exception somewhere.
Opinions are greatly appreciated, please and thank you!
--173.21.xxx.xx |
Income requirement (by S i d [MO]) Posted on: Mar 31, 2015 11:16 AM
Message:
I require minimum income of 3x the rent, so in my view you are way too low regardless of $50 one way or the other.
Btw, to avoid liability my criteria is worded like so:
"MINIMUM household income of 3x the monthly rent to be considered. Must be documented, verifiable, and from a stable source."
This way, by specifying a MINIMUM to be CONSIDERED, someone who makes 20x can still be denied. I just don't bother with anything less than 3x. They are a disaster waiting to happen.
$500 a month isn't much to live on after rent. One tiny hiccup and they're evicted. --173.16.xxx.xxx |
Income requirement (by SharonG [SC]) Posted on: Mar 31, 2015 12:06 PM
Message:
IMHO - twice the rent is not enough, it needs to be at 3 times, this is my requirement.
Let's say T brings home $1100. $575 is paid for rent, we have $525 left for the month. Call electric $100, $50 cellphone, $80 gasoline to get to work..T has less than $300 a month left for EVERYTHING - food, clothing, entertainment, car payments etc. Not a good situation. --75.190.xxx.xx |
Income requirement (by Barb [MO]) Posted on: Mar 31, 2015 12:09 PM
Message:
My criteria is worded:
Minimum household NET income must be 3X monthly rent to be considered. Income must be documented, verifiable, and from a stable source. (Net income is after taxes, deductions, benefit payments and garnishments)
I've seen people who had gross income that was 4X the rent, but after everything, only took home 60% of it or less. --131.151.xx.xxx |
Income requirement (by John... [MI]) Posted on: Mar 31, 2015 1:28 PM
Message:
The minimum may need to fluctuate by area. If we had SharonG's requirement of 3x their NET income, almost all of my places would be empty.
We require 2.5x GROSS and it works. These are apartments that rent for around $475/month. So, they need to make a minimum of around $1200/month GROSS to qualify.
We rent to those people all day, every day and it works. Again, if I required 3x NET (or even 2.5x NET), most of our units would be empty.
- John...
--207.241.xxx.xxx |
Income requirement (by SharonG [SC]) Posted on: Mar 31, 2015 2:54 PM
Message:
It depends what you are renting and to whom. If I had 1 bdrm to rent to a single person, I would definitely consider income twice the rent, or mobile home - different kind of dwelling.
I happened to have all 2 bdrms, too big for a single, usually I get single mother + child support (it's income) or a couple (if both working it's usually not a problem to get 3 times the rent between both incomes), or older mother (social Security) + grown up child (working). So it depends very much. --75.190.xxx.xx |
Income requirement (by Patricia [IA]) Posted on: Mar 31, 2015 3:20 PM
Message:
Thanks to everyone for all the feedback.
It's all greatly appreciated! --173.21.xxx.xx |
Income requirement (by John... [MI]) Posted on: Mar 31, 2015 3:57 PM
Message:
All 11 of mine are also all 2BR just like you, Sharon. :)
- John...
--97.91.xx.xx |
Income requirement (by shawn sisco [MO]) Posted on: Mar 31, 2015 4:02 PM
Message:
I can't imagine a strong enough application to make me think that an individual who earns such a low amount, has so little left over after paying rent that food,utilities, phone, and transportation are unfunded could ever work out well for me.
Why wouldn't you reject this one and try for a better qualified applicant? --72.172.xxx.xx |
Income requirement (by BRAD 20,000 [IN]) Posted on: Mar 31, 2015 8:18 PM
Message:
Patricia,
Traditionally, lower income persons pay a higher percentage of their income toward rent.
These days, few people know their GROSS income, so we work with their TAKE HOME PAY. EVERYBODY know what they take home.
So from TAKE HOME, we allow .42 x Take Home pay.
The math works out the same as 30% of gross.
We'll fudge a few dollars but not much. It just does not work for either us or the applicant.
We use the numbers on their paystubs, NOT what they tell us.
By actual count, 50% of our applicants LIE about their employment.
Most applicants have a smart phone and can text a phone pic of their paystub.
Stay strong with your criteria. You are not doing someone a favor by letting them into a lease they cannot afford.
-BRAD
--68.50.xx.xxx |
Income requirement (by patricia [IA]) Posted on: Mar 31, 2015 8:25 PM
Message:
Brad, so what would be the requirement? Just curious, never heard of it being done that way and am definitely open to different ideas. --173.24.xxx.xx |
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