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No doubt. 2.5x isn't enough income. (btw.. did that $50,000 include child support?)
3x is absolute MINIMUM... and that for someone like a single guy with no responsibilities or obligations.
People with known responsibilities, obligations and other debt commitments need more buffer.
In my area it's 40x the monthly rent as a minimum (3.3x rent, basically).
So if the rent is, say $1,600, you want someone making $64,000.
2.5x is way too low. I mean... wouldn't that mean she was renting a $1700k apartment to someone making $50k?
I prefer to verify income by phoning the employer (and not with the number given to me by the applicant). Besides verifying their income, I want to know if they are considered to be a reliable employee and if the position is full time.
If income is from a different source than a regular paycheck, my first move is to ask the applicant how they can verify that they have income. They will usually volunteer to provide bank statements, grant letters, or other sorts of proof. If they really do have an income, we can work something out.
There are too may "self-employed" out there who don't have a steady income yet are trying to get into a rental. I just assume that the game is to get through the door and then to dig in and fight eviction, thereby gaining several months of a free place to live. But, I don't know that for sure, because I won't rent to anyone who can't show me how they will pay the rent.
My overall experience with tenants is that few of them have any savings and a lot of them (not all) don't have good financial sense. If anything at all happens to upset their financial world, I will end up kicking them out. But that is just part of the job of being a landlord.
By the way, it is in my written criteria that I will not consider child support to be income. Child support is the child's money, not the parents.
Child support payments are notoriously late or not paid at all and I am not going to sit around hoping the tenant gets his/her child support check this month so I can get my rent.
Now, if the person paying the child support would like to cosign and put in an application and be screened, then I will consider it. But I am not going to depend upon my rent to arrive from someone who is not in the unit, has no contract with me, and who hasn't been screened to verify that they even have a steady source of income.
Also, there's no point blacking out the account number on your bank statement. That will just make me question you more. When you give me a rent check, your account number is printed on the bottom.
Sure, there's a point. I have more than one account listed on my bank statement. You have no need to have my savings account number. Many people only keep enough in their checking account to cover the checks they intend to write that month, so if I showed you that account alone, you'd think I was living month to month, my liquid funds are in my savings account. I'm not ever going to write you a check from that account, therefore, you don't need that number.
I don't see any difference in any other buisness when the busines is about abilty to pay with the legal system of removal is often so time consuming and costly.Not many businesses do not reuire proof whe doig such business now days and standards are getting tougher for all such contracts in abilty to fulfill them.
I prefer to verify income by phoning the employer (and not with the number given to me by the applicant). Besides verifying their income, I want to know if they are considered to be a reliable employee and if the position is full time.
If income is from a different source than a regular paycheck, my first move is to ask the applicant how they can verify that they have income. They will usually volunteer to provide bank statements, grant letters, or other sorts of proof. If they really do have an income, we can work something out.
There are too may "self-employed" out there who don't have a steady income yet are trying to get into a rental. I just assume that the game is to get through the door and then to dig in and fight eviction, thereby gaining several months of a free place to live. But, I don't know that for sure, because I won't rent to anyone who can't show me how they will pay the rent.
My overall experience with tenants is that few of them have any savings and a lot of them (not all) don't have good financial sense. If anything at all happens to upset their financial world, I will end up kicking them out. But that is just part of the job of being a landlord.
The property we just bought has an existing tenant who knew there was a vacant unit in the building and has a cousin who wanted to rent it out. Someone (I think it was the superintendent of the old LLs) gave him my husband's cell phone number, and he passed that on to his cousin. She called 3x asking about renting the apartment. Closing was put off for one reason or another over the course of a few weeks, so until we had a solid day set to close my husband kept telling this woman that we didn't own it yet, we can't do anything about renting the unit out.
She called again, the day before we closed, and my husband told her that we were closing the following day and since he was doing an early am walkthrough, he would give her cousin an application form, an income verification form, and a background check authorization form for her to fill out.
What's so bad is that it is None of Your business what they spend their money on. Like the other poster said....Make sure this is your requirement for everyone....Or these folks might sue and own your building.
I don't need to see who's paying you or whom you're paying.
people could be earning $5000 a month, and spending $4500 of that every month on stuff.
I do not use a lease break clause.
I use common law. You move, you're still liable for the lease, but I have a duty to find a new tenant.
But if I did have such clause, I'd ask for 2 months rent.
Many tenants would probably just abandon the rental then, and let the landlord keep the security deposit.
LL would have to pursue them in small claims in any case.
Also, there's no point blacking out the account number on your bank statement. That will just make me question you more. When you give me a rent check, your account number is printed on the bottom.
With some of your comments, as a Realtor and property manager, I feel you are stepping over the line in a couple of places. First of all, treat everyone the same every time, period. Judgement calls are out of line. Reasonable Policies to cover any reasonable scenario keep you out of court.
If you do not require bank statements on every applicant, then you can't ask for them from someone who has pay stubs just because you "think" they might be blowing their money. Do you call their last 2 landlords for a reference? Run their credit?
Incidentally we ask for bank statements and tax returns if a person is self employed, bank statements if they are living on retirement income whatever that source might be.
With some of your comments, as a Realtor and property manager, I feel you are stepping over the line in a couple of places. First of all, treat everyone the same every time, period. Judgement calls are out of line. Reasonable Policies to cover any reasonable scenario keep you out of court.
If you do not require bank statements on every applicant, then you can't ask for them from someone who has pay stubs just because you "think" they might be blowing their money. Do you call their last 2 landlords for a reference? Run their credit?
Incidentally we ask for bank statements and tax returns if a person is self employed, bank statements if they are living on retirement income whatever that source might be.
Even if they can provide a statement of benefits from SS?
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