monthly income equal to three times the monthly rent?!

[annerk]

The rule of thumb has always been 25% of your monthly gross income should be your max housing payment.

The relaxing of those standards is how we got into the housing/mortgage mess.

If I were a landlord, I'd rather let the place sit vacant for a few months and find a qualified tenant in terms of income and credit than let someone in who pays one months rent and then stays around while it takes me six months to work through the eviction process.

I've got a friend who rented to people without the income or credit they should have had, but accepted a co-signer. It still took six months to evict them and she still hasn't collected the back rent and costs, despite having a judgement against all parties. That was three years ago.

[Rabflmom]

Originally Posted by lcole07

I thought the rule was a weeks income for a months rent. Have things changed that much???

Standard today.....first, last, deposit (usually the same as months rent), credit check charge, 3 times the rent income a month.......it is what they charged us 7 years ago when we had repairs to the house to do, too.

If you have pets there is a pets deposit, too......plus there was a page to sign about new carpet, paint colors, etc.

And there was even a clause about the vehicle you drive not being an old ugly one that would clutter up the parking lot and deter others from wanting to rent there. Just a regular apartment complex and nothing really expensive or fancy-3 bedroom for $1100.

[JustinsMama]

By the 25% standard we "could" pay $1,600+ a month...that would make me extremely nervous...I'm trying not to go too much over $1,200/month for our next place and even less if I can find something we like (though I seriously doubt that will happen)...

[annerk]

Originally Posted by JustinsMama

By the 25% standard we "could" pay $1,600+ a month...that would make me extremely nervous...I'm trying not to go too much over $1,200/month for our next place and even less if I can find something we like (though I seriously doubt that will happen)...

There's nothing wrong with going below what you "could" pay, there's something really wrong with going over it.