Military/PPLIED FOR A RENTAL UNIT/ GOT DENIED BECAUSE OF MY INCOME NOT TOTALING TO THREE TIMES THE RENT IS THIS LEGAL? (pay, rent)
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military person here,
I applied to rent an apartment, the rent is $1985
my total income including my housing allowance is $5307.49
in order to qualify I needed three times the rent???? I said really.... so basically I need to earn $5955
so I was told they needed $647.51 more to qualify. well okay I said so I said I have a retirement plan started at $3405. and will still be growing, bout to increase it later this retirement will be getting and additional $454 per month. so here is what calculated for lease period of 11 months.
$5307.49x12mos=$63,689.88 this is based on YTD on my pay stub or LES
$63,689.88+$3405=$67,094.88
$67,094.88/12months=$5,591.24 is my average monthly income (this why I did not qualify)
SHOULDN'T IT BE:
$67,094.88/11MOS=$6,099.45 (Since this is based on YTD income) Don't I qualify????
not only that the $3405+($454x11mos)=$8,399 (YTD from the retirement plan for 2016 in the end of this year)
should i just apply next year, we are not even counting the BAH my Husband will be getting as soon school starts???
So my question is is this legal to be asking for three times the rent?
Instead of arguing I researched here's what I have found?
GOVERNMENT CODE
SECTION 12955-12956.2
12955. It shall be unlawful:
(c) For any person to make, print, or publish, or cause to be
made, printed, or published any notice, statement, or advertisement,
with respect to the sale or rental of a housing accommodation that
indicates any preference, limitation, or discrimination based on
race, color, religion, sex, gender, gender identity, gender
expression, sexual orientation, marital status, national origin,
ancestry, familial status, source of income, disability, or genetic
information or an intention to make that preference, limitation, or
discrimination.
(d) For any person subject to the provisions of Section 51 of the
Civil Code, as that section applies to housing accommodations, to
discriminate against any person on the basis of sex, gender, gender
identity, gender expression, sexual orientation, color, race,
religion, ancestry, national origin, familial status, marital status,
disability, genetic information, source of income, or on any other
basis prohibited by that section. Selection preferences based on age,
imposed in connection with a federally approved housing program, do
not constitute age discrimination in housing.
(e) For any person, bank, mortgage company or other financial
institution that provides financial assistance for the purchase,
organization, or construction of any housing accommodation to
discriminate against any person or group of persons because of the
race, color, religion, sex, gender, gender identity, gender
expression, sexual orientation, marital status, national origin,
ancestry, familial status, source of income, disability, or genetic
information in the terms, conditions, or privileges relating to the
obtaining or use of that financial assistance.
(o) In instances where there is a government rent subsidy, to use
a financial or income standard in " assessing eligibility" for the
rental of housing that is not based on the portion of the rent to be
paid by the tenant.
(p) (1) For the purposes of this section, "source of income" means
lawful, verifiable income paid directly to a tenant or paid to a
representative of a tenant. For the purposes of this section, a
landlord is not considered a representative of a tenant.
(2) For the purposes of this section, it shall not constitute
discrimination based on source of income to make a written or oral
inquiry concerning the level or source of income.
Your retirement account is not income, nor is your salary taken over 11 months.
Granted I think you could swing a few extra dollars as those percent formulas don't account for tricare, nor the tax advantages of BAS/BAH, but the ratio is there to keep you out of trouble and you should find a cheaper place (btw it's great that you have a retirement account, keep it up).
Yes, it's legal. Read your state's landlord/tenant laws for info specific to your state.
There are plenty of landlords out there who don't do credit/background or income checks..you just have to find them. Most corporate owned apt complexes are going to have strict criteria, private landlords tend to have less, scumlords have none.
military person here,
I applied to rent an apartment, the rent is $1985
my total income including my housing allowance is $5307.49
in order to qualify I needed three times the rent???? I said really.... so basically I need to earn $5955
so I was told they needed $647.51 more to qualify. well okay I said so I said I have a retirement plan started at $3405. and will still be growing, bout to increase it later this retirement will be getting and additional $454 per month. so here is what calculated for lease period of 11 months.
$5307.49x12mos=$63,689.88 this is based on YTD on my pay stub or LES
$63,689.88+$3405=$67,094.88
$67,094.88/12months=$5,591.24 is my average monthly income (this why I did not qualify)
SHOULDN'T IT BE:
$67,094.88/11MOS=$6,099.45 (Since this is based on YTD income) Don't I qualify????
not only that the $3405+($454x11mos)=$8,399 (YTD from the retirement plan for 2016 in the end of this year)
should i just apply next year, we are not even counting the BAH my Husband will be getting as soon school starts???
So my question is is this legal to be asking for three times the rent?
Instead of arguing I researched here's what I have found?
GOVERNMENT CODE
SECTION 12955-12956.2
12955. It shall be unlawful:
(c) For any person to make, print, or publish, or cause to be
made, printed, or published any notice, statement, or advertisement,
with respect to the sale or rental of a housing accommodation that
indicates any preference, limitation, or discrimination based on
race, color, religion, sex, gender, gender identity, gender
expression, sexual orientation, marital status, national origin,
ancestry, familial status, source of income, disability, or genetic
information or an intention to make that preference, limitation, or
discrimination.
(d) For any person subject to the provisions of Section 51 of the
Civil Code, as that section applies to housing accommodations, to
discriminate against any person on the basis of sex, gender, gender
identity, gender expression, sexual orientation, color, race,
religion, ancestry, national origin, familial status, marital status,
disability, genetic information, source of income, or on any other
basis prohibited by that section. Selection preferences based on age,
imposed in connection with a federally approved housing program, do
not constitute age discrimination in housing.
(e) For any person, bank, mortgage company or other financial
institution that provides financial assistance for the purchase,
organization, or construction of any housing accommodation to
discriminate against any person or group of persons because of the
race, color, religion, sex, gender, gender identity, gender
expression, sexual orientation, marital status, national origin,
ancestry, familial status, source of income, disability, or genetic
information in the terms, conditions, or privileges relating to the
obtaining or use of that financial assistance.
(o) In instances where there is a government rent subsidy, to use
a financial or income standard in " assessing eligibility" for the
rental of housing that is not based on the portion of the rent to be
paid by the tenant.
(p) (1) For the purposes of this section, "source of income" means
lawful, verifiable income paid directly to a tenant or paid to a
representative of a tenant. For the purposes of this section, a
landlord is not considered a representative of a tenant.
(2) For the purposes of this section, it shall not constitute
discrimination based on source of income to make a written or oral
inquiry concerning the level or source of income.
BAH is not considered a rent subsidy because it is not paid directly to the landlord like a section 8 voucher.
In any case, why are you so eager to make yourself apartment poor?
BAH is not considered a rent subsidy because it is not paid directly to the landlord like a section 8 voucher.
In any case, why are you so eager to make yourself apartment poor?
THIS^^. I make more than you by about a thousand a month and can tell you affording almost $2000 a month would be a big struggle. My rent is less than $800 now and I wouldn't go past $1200 or so if I needed a new place. You're seriously underestimating the other expenses life brings.
the apartment management's primary focus is making sure you can afford the rent. if they think you might struggle to pay it they have every right to turn you down (that's why they check credit, too). There is no legal requirement that they prove it. The standard calculation used is actually 30%, so their number is right in the ballpark.
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Even if you did make enough to be consider the rent 1/3 of your income, many cities have such a competitive rental market that they could (legally) deny your application in favor of someone making more than you. Despite the "1/3 rule" I think people are pushing it when they pay that much of their income for housing.
The idea is the same as a mortgage/taxes/insurances for a mortgage,., it shouldn't be more than 30% of your net income, you wouldn't get it.
If it works for mortgages, it should work for apartments rents they figure.
Simply look for a cheaper unit.
Places like Hawaii have the 3xs income rule to rent there, to be sure you can adequately pay the rent. Any higher and they risk you not paying. and not all income is counted.
military person here,
I applied to rent an apartment, the rent is $1985
my total income including my housing allowance is $5307.49
in order to qualify I needed three times the rent???? I said really.... so basically I need to earn $5955
so I was told they needed $647.51 more to qualify. well okay I said so I said I have a retirement plan started at $3405. and will still be growing, bout to increase it later this retirement will be getting and additional $454 per month. so here is what calculated for lease period of 11 months.
$5307.49x12mos=$63,689.88 this is based on YTD on my pay stub or LES
$63,689.88+$3405=$67,094.88
$67,094.88/12months=$5,591.24 is my average monthly income (this why I did not qualify)
SHOULDN'T IT BE:
$67,094.88/11MOS=$6,099.45 (Since this is based on YTD income) Don't I qualify????
not only that the $3405+($454x11mos)=$8,399 (YTD from the retirement plan for 2016 in the end of this year)
should i just apply next year, we are not even counting the BAH my Husband will be getting as soon school starts???
So my question is is this legal to be asking for three times the rent?
Instead of arguing I researched here's what I have found?
.
Sure it's legal. You can set whatever rules you want as far as income from a tenant.
But you also have debt to income ratio. Someone can make 6k a month with a 2k rent. But if they have 70 % DTI the 3x rent to income is pointless.
It's been my experience that 3x rent requirement is a good guage as to weather the tenant can make rent every month but the debt ratio comes in to play also.
Last edited by Electrician4you; 01-24-2016 at 12:08 PM..
THIS^^. I make more than you by about a thousand a month and can tell you affording almost $2000 a month would be a big struggle. My rent is less than $800 now and I wouldn't go past $1200 or so if I needed a new place. You're seriously underestimating the other expenses life brings.
the apartment management's primary focus is making sure you can afford the rent. if they think you might struggle to pay it they have every right to turn you down (that's why they check credit, too). There is no legal requirement that they prove it. The standard calculation used is actually 30%, so their number is right in the ballpark.
The issue with the military is that in high rent areas the junior personnel can often get a housing allowance that can eclipse their salary.
Take San Diego. A married E3 gets more in housing allowance than base pay, and so he'd look like he was spending half his income on rent, but he is in a much better place than a E3 with a live in girlfriend who does not get BAH and is spending 1/3 of his base pay on rent.
Guy A looks bad on paper as he is spending 50% of his income on housing, but has $1,800/month to spare.
Guy B looks good on paper as he is spending 33% of his income on housing, but only has $1,200 to spare.
Military pays don't always work so well with classic thumbrules.
Still no reason to sea-lawyer, just go find some other residence.
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