I just don't get where the money goes. Just met a prospect to get documents. (re: target post recently).

W2 31k, pay stub $550 net. I'm asking for $1650 to sign total.

Their biggest expense is a car payment $175 every 2 weeks.Credit score close to 700.

Yet they have to wait a paycheck to provide me the balance of funds.

Taters,

Confirms what I keep saying - People don't have money. They might have good income but they don't have money.

We study their student loans and car payments on each appl. (cue Beatles) "Just read the news today Oh boy!" that car loan debt is the highest ever and default rates are climbing.

Student loans 90+ days late are also climbing.

$100/mo per cellphone

$100/mo tv/Netflix/Hulu/internet

Look how many chain restaurants are going up in any community - gotta eat out!

Excuse me while I go grab some dinner at the new Panda Express in town which I ordered on my smartphone!

On top of the car payments prospect says they had to pay 1100 recently for disc brakes and electronic problem w/ car. Phone is $45/ mo. Last year my calipers were $700. So I can see the hit on the auto.

You have a point. I cook always, but the McDs by me has to be the busiest place, on 2nd thought its taco bell. So if you ate take out every night and every lunch and got a cheap coffee at Stewarts or a DD meal you'd be down 25-30 bucks a day? + entertainment and for many cigs and weed.

So they are dishing out $380t/month for car payment and full coverage for the vehicle and you don't see why they're struggling to come up with the money?

JB, I see car payments and lets say most of auto insurance paid with 1 paycheck. Rent 1 paycheck (for advertised listing).

All other expenses in 1 month with roughly $1000+? Am I missing something? and no savings? I suppose some savings might have been put toward a down payment on the car?

$380/month is just for the car payment. I don't know how old the prospect is but there was a time when I was paying $400/month for liability only car insurance about a hundred years ago when I was in my twenties (and I never had a DUI and it wasn't a sports car). Of course if I had a faster car and full coverage I would have been selling off organs to finance the whole operation.

My point is that young people today have a million things they want to (and have to) spend their measly paychecks on. And they just think that if you don't wait for them they'll just look for the next guy and maybe he will.

Taters,

We just rented 7 homes. We sign them with the despoit and a written plan for the balance owed for move in, usually the coming Friday or the next. In the middle of the month the rent is prorated so smaller.

While other LLs whined, we signed. Now fewer prospects for the whiners.

I figure the deposit is the same income to me as a month of rent so basically I have the rent AMOUNT in hand.

The $380 car payment is 17% of their gross income. We allow 12% for auto so we would reduce his gross by 5%.

THIS is why many renters fall behind - the LL did not calculate the higher monthly bills into the 33% for rent.

Two grand a month with $350 of that going to car payments, I can see how money would be tight. The cost of everything keeps going up and there are a lot of incidental expenses to live besides the big ones (rent, food, utilities.)

At that level of pay, he probably doesn't get great health insurance benefit from work, so there are insurance costs, medial costs, dentist... Car repairs, gasoline, car insurance, clothing.

Are there kids? Kids are expensive, clothing, school supplies, elective activities that schools used to provide for free but now must be paid for.

the rent is $525. Winter utilities $130 month. Target DC provides health care but I don't know the employee portion. Young single person, not previously paying rent. I am asking and will get a double deposit from this applicant. What caught me off guard was that they had the other deposit but have to wait to pay 1st month rent until next weeks paycheck comes in.

Brad- how did you come to figure auto at 12% of income? and are you estimating in insurance and maintenance into that calculation?

It's true, they find ways.

A pair of $150 tennis shoes

Tanning salon/nail painting

Nightly beers at the pub

Jewelry/watches

Furniture

Knick-knacks for the house

Steak dinners

It all adds up!

I should have added...

Once I had a tenant who considered getting a new Tattoo of her dream more important than paying rent on time. We ended up in court.

Gotta also pay Verizon, Facebook, Netflix, the cable company and Spotify. I believe we are seeing a change in spending habits that reflects the desires of the newest generation.