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I'm halfway through a 6-month lease and am starting to think about where to live next. I also just started my company's 401(k) program and want to max out by the end of the year, so I'm contributing 35% of my base pay and might even ratchet up to 50%. Will I be able to get a place similar in price to what I'm renting now if my current landlord gives me a positive reference?
Some landlords want to know your gross salary and some want to know your take-home salary. You must have some sort of paperwork that shows how much is going into the 401K. Savings aren't really expenses. Although you can't just dip into the 401 k like it is a checkbook, at least a few landlords are going to see that you can live on what is left over because you are already doing it.
Depends on the LL and whether they ask for your gross or net pay and whether they ask for proof. If push comes to shove, then decrease your 401k contribution enough while searching for apts if most in your area want proof of your net pay. And then increase it after you find an apt.
Call around to a few places and see what they require for income and proof.
I'm halfway through a 6-month lease and am starting to think about where to live next. I also just started my company's 401(k) program and want to max out by the end of the year, so I'm contributing 35% of my base pay and might even ratchet up to 50%. Will I be able to get a place similar in price to what I'm renting now if my current landlord gives me a positive reference?
I've never had a landlord ask me about my contributions to my 401K, although they have asked for pay stubs. They tend to be more interested in what you make, and what your other debt obligations are (in addition to the rent.) Your 401K contribution is your business, and more importantly, your choice. You aren't likely to tell the landlord that you can't pay rent because you had to contribute to a 401k, and you aren't likely to be evicted because you couldn't come up with rent money because you were contributing to a 401K.
We've talked about this before, if you don't have enough money for living expenses (food, shelter, transportation, miscellaneous incidentals) because you're dumping 50% of your salary into a retirement account you're putting too much into it.
I've never had a landlord ask me about my contributions to my 401K, although they have asked for pay stubs. They tend to be more interested in what you make, and what your other debt obligations are (in addition to the rent.) Your 401K contribution is your business, and more importantly, your choice. You aren't likely to tell the landlord that you can't pay rent because you had to contribute to a 401k, and you aren't likely to be evicted because you couldn't come up with rent money because you were contributing to a 401K.
Despite what you may think there are LLs who require knowing what a person's net take home pay is as opposed to their gross pay. They even ask for bank statements to see how they spend their money Hence the reason why I recommended to OP to call around to a few places in their area and find out what some of them require.
I'm halfway through a 6-month lease and am starting to think about where to live next. I also just started my company's 401(k) program and want to max out by the end of the year, so I'm contributing 35% of my base pay and might even ratchet up to 50%. Will I be able to get a place similar in price to what I'm renting now if my current landlord gives me a positive reference?
Not entirely related, but some important things to keep in mind about 401(k) contributions:
-- There are maximums of what you can put into a 401(k) each year ($18,000 in 2015 plus there is a catch up contribution allowance if you're 50 or over). Confirm that if you hit this max before year end that your company will automatically stop your contributions. And then keep an eye on it, because even major corporations goof this a lot in the initial year it happens and it is much easier to fix before year end than after.
-- Confirm your contribution percentage allowances. Most companies will not let you, by policy, contribute more than 25% of your wages in a pay period. Some companies will, but you should check with your administrator.
-- Know your company's policies on matching contributions and how they treat it if you front load your contributions (if you max out before the end of the calendar year, do they gross up their match?). Run a spreadsheet each year to ensure that you don't miss out on any of your match.
-- Adjust your W-4 for your reduced taxable income. Because 401(k) contributions are non-taxable, you may want to increase your exemptions so that your take-home pay is higher instead of your refund.
Sorry for the interruption or if you already have all this covered. Back to your regularly scheduled program.
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Hence the reason why I recommended to OP to call around to a few places in their area and find out what some of them require.
