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 Income/Rent Ratio? (by Dave [TN]) Apr 26, 2024 10:44 AM
 Income/Rent Ratio? (by plenty [MO]) Apr 26, 2024 11:04 AM
Income/Rent Ratio? (by Vee [OH]) Apr 26, 2024 11:29 AM
Income/Rent Ratio? (by jonny [NY]) Apr 26, 2024 11:49 AM
Income/Rent Ratio? (by Sisco [MO]) Apr 26, 2024 11:53 AM
Income/Rent Ratio? (by Jim [CA]) Apr 26, 2024 3:41 PM
Income/Rent Ratio? (by Sisco [MO]) Apr 26, 2024 3:46 PM
Income/Rent Ratio? (by Jim [CA]) Apr 26, 2024 4:52 PM
Income/Rent Ratio? (by Jason [VA]) Apr 26, 2024 4:57 PM
Income/Rent Ratio? (by 6x6 [TN]) Apr 26, 2024 6:35 PM
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Income/Rent Ratio? (by Dave [TN]) Posted on: Apr 26, 2024 10:44 AM
Message:
Hello everyone,
Newbie LL here. I have a rental for 1000/month. What is the best way to qualify an applicant based on income. I have heard 3x rent? But is that take home pay? What about debt like car payments, school loans etc.........
Thanks a million --69.228.xxx.xxx |
Income/Rent Ratio? (by plenty [MO]) Posted on: Apr 26, 2024 11:04 AM
Message:
Good question! I ask for two months bank statements. I also note how much rent they are paying now vs. The unit they are applying for. And do they have anything left over at the end of the month. Some are better at managing their money. --172.59.xxx.xxx |
Income/Rent Ratio? (by Vee [OH]) Posted on: Apr 26, 2024 11:29 AM
Message:
For awhile 3x rent was a good ratio, since 2004 the patriot act changed a lot of credit and HUD moved into a 4;1 ratio. Raeda all your local and state laws since covid cam and dissolved lots of rule changes, read backwards then forwards, find a couple lndlord group nearby who can help or shift to anther one, stay away from tenants who want to be in control, they will ruin your places and blood pressure. --184.59.xxx.xx |
Income/Rent Ratio? (by jonny [NY]) Posted on: Apr 26, 2024 11:49 AM
Message:
I do 3x minimum and I do look at the take home pay BUT sometimes it depends. If I am looking at the credit/background checks then I am also looking at their paystubs. I just had a guy that basically transferred automatically half of his check into savings. I could see it on his paystubs. The other amount was what he would pay for his rent, utilities and food, etc.
He has no car and walks everywhere. He was hoping for a closer place to work but liked the apartment we had and he was basically a no brainer for us on that. If I held to 3x the rent as his TAKE HOME pay without looking at it... he wouldn't have passed. Sometimes you have to look. --69.201.xx.xxx |
Income/Rent Ratio? (by Sisco [MO]) Posted on: Apr 26, 2024 11:53 AM
Message:
Dave, I use a 4X take home pay ratio as minimum acceptable. As previously stated bank statements verification.
Then I look at all credit obligations listed on credit report, add them to rent amount and my estimate of utilities cost, subtract this amount from total take home pay.
Applicant must have a minimum of $1500 discretionary income to feed and clothe themselves with.
My units are priced $700-$1000 per month. --149.76.xxx.x |
Income/Rent Ratio? (by Jim [CA]) Posted on: Apr 26, 2024 3:41 PM
Message:
I use 2.5 NET after all reoccurring, ie. car payment, loans minimum credit card payments etc are deducted. --198.44.xxx.xx |
Income/Rent Ratio? (by Sisco [MO]) Posted on: Apr 26, 2024 3:46 PM
Message:
Jim, I don’t understand what you meant. --149.76.xxx.x |
Income/Rent Ratio? (by Jim [CA]) Posted on: Apr 26, 2024 4:52 PM
Message:
2.5 net times rent amount. If rent was $1000 then they would have to have $2500 after paying all their scheduled bills. That means after they paying their rent, they would have $1500 for non-scheduled payments like gas, food, church and a movie.
--146.70.xxx.x |
Income/Rent Ratio? (by Jason [VA]) Posted on: Apr 26, 2024 4:57 PM
Message:
Just pick a standard and apply it across the board. I use 3x gross as a bare minimum --73.147.xxx.xx |
Income/Rent Ratio? (by 6x6 [TN]) Posted on: Apr 26, 2024 6:35 PM
Message:
To add, what if it is a couple applying?
Do you count the couple as one?
BTW, welcome TN --76.129.xxx.xx |
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