How much income do landlords require tenants to make? 2.5x, 3x or 4x monthly rent? (lease)

[bbqflavor]

How much monthly income do landlords, in the Triangle area, require the tenant to make? What if there are multiple tenants splitting rent? I have heard 2.5 times and up to 4 times monthly rent. Are they looking at income BEFORE or AFTER Taxes? I also have very good credit, if that matters.

[Stringbender]

I moved to the area a couple of months ago. Took the time to look around at all my options. In a descent neighborhood it was mostly 3x rent. I came across a couple of complexes that were 2.5x. It’s determined by gross income(before taxes).

You can get around that requirement if you have a enough cash on hand to buy out the whole lease. To protect yourself in that situation, I would suggest that you talk to an established Property Management company who has the ability to escrow the money and release it monthly to the landlord.

[bbqflavor]

Originally Posted by Stringbender

I moved to the area a couple of months ago. Took the time to look around at all my options. In a descent neighborhood it was mostly 3x rent. I came across a couple of complexes that were 2.5x. It’s determined by gross income(before taxes).

You can get around that requirement if you have a enough cash on hand to buy out the whole lease. To protect yourself in that situation, I would suggest that you talk to an established Property Management company who has the ability to escrow the money and release it monthly to the landlord.

Thanks for your input. 3x monthly rent seems more manageable for me to do. Do you know if they look at multiple tenant's income individually or as a total for people splitting rent of a place?

[duhmanda]

Originally Posted by bbqflavor

Thanks for your input. 3x monthly rent seems more manageable for me to do. Do you know if they look at multiple tenant's income individually or as a total for people splitting rent of a place?

In my experience, they take into account each tenant's income and treat it as collective income.

[MikeJaquish]

Originally Posted by duhmanda

In my experience, they take into account each tenant's income and treat it as collective income.

But, the tenants can expect to sign a lease making any of them responsible for the full rent in the case that one doesn't pay, moves out, etc.


"Jointly and Severally"

[bpains29]

Originally Posted by Stringbender

I moved to the area a couple of months ago. Took the time to look around at all my options. In a descent neighborhood it was mostly 3x rent. I came across a couple of complexes that were 2.5x. It’s determined by gross income(before taxes).

You can get around that requirement if you have a enough cash on hand to buy out the whole lease. To protect yourself in that situation, I would suggest that you talk to an established Property Management company who has the ability to escrow the money and release it monthly to the landlord.

I wonder if could get a lower rent (discount on the lease) if you were able to pay up front in cash. Not many people are able to do this though

[RedZin]

Originally Posted by bbqflavor

How much monthly income do landlords, in the Triangle area, require the tenant to make? What if there are multiple tenants splitting rent? I have heard 2.5 times and up to 4 times monthly rent. Are they looking at income BEFORE or AFTER Taxes? I also have very good credit, if that matters.

Because they want to get paid their rent?

Just a guess.

If a landlord allows multiple people to equally share the rent burden, I'm sure they change their income policies somewhat, but how does it work if one tenant suddenly moves out? The others need to have enough to pay the rent.