Income 2X Rent?

Click here for Top Ten Discussions. CLICK HERE for Q & A Homepage

MrLandlord Q & A

Income 2X Rent? (by Kate [NJ]) Apr 22, 2012 4:30 PM

Income 2X Rent? (by Virden [OH]) Apr 22, 2012 4:43 PM

Income 2X Rent? (by ll [AZ]) Apr 22, 2012 6:45 PM

Income 2X Rent? (by Heather [IL]) Apr 22, 2012 7:19 PM

Income 2X Rent? (by NC INVESTOR [NC]) Apr 22, 2012 7:25 PM

Income 2X Rent? (by Kate [NJ]) Apr 22, 2012 7:41 PM

Income 2X Rent? (by NC INVESTOR [NC]) Apr 22, 2012 7:50 PM

Income 2X Rent? (by Ken [NY]) Apr 23, 2012 4:30 AM

Income 2X Rent? (by 574-Brad [IN]) Apr 23, 2012 5:51 AM

Income 2X Rent? (by John... [MI]) Apr 23, 2012 6:22 AM

Income 2X Rent? (by Echo [GA]) Apr 23, 2012 10:20 AM

Income 2X Rent? (by Elizabeth gomez [CA]) May 18, 2020 1:25 PM

Income 2X Rent? (by Jasen Thomas [CA]) Jun 25, 2020 2:42 AM

Income 2X Rent? (by JKJ [MA]) Jun 25, 2020 6:06 AM

Income 2X Rent? (by LisaFL [FL]) Jun 25, 2020 7:35 AM

Income 2X Rent? (by WMH [NC]) Jun 25, 2020 9:23 AM

Income 2X Rent? (by Kacey [FL]) Jun 26, 2020 2:21 AM

Income 2X Rent? (by Chelsea Jacobs [SC]) Jan 23, 2022 10:04 AM

Income 2X Rent? (by Dave [CA]) Jan 23, 2022 11:35 PM

Income 2X Rent? (by Bran-don White-house [WA]) Jan 23, 2022 11:43 PM

Income 2X Rent? (by Kate [NJ]) Posted on: Apr 22, 2012 4:30 PM
Message:

What is your magic multiplication factor of income for prospective tenants to be able to afford your rent? And how low would you go?

I prefer their income to be 3X the rent, but hard times are getting it closer to half. Early in the biz, 4X was the rule of thumb advised by most financial experts for all renters, landlords, and new home owners. That would be a great number, but who is really seeing that ratio today?

Funny irony – my new tenant just squeaked-by qualifying to rent by adding in her child support income. Her children have all left home. I asked: "How do you still receive child support for grown children?" She said that because her ex is so far in arrears, she expects to receive the back payments well into her retirement years!

Thanks, Kate

--68.39.xxx.xx

Income 2X Rent? (by Virden [OH]) Posted on: Apr 22, 2012 4:43 PM
Message:

When income falls below 3x rent they will sink like the titanic, do not bother to load them in - it is easier to rent an empty place than to clean and prepare a trashed unit. --76.241.xxx.xx

Income 2X Rent? (by ll [AZ]) Posted on: Apr 22, 2012 6:45 PM
Message:

2x rent means as soon as their car needs tires you wont get paid. --166.216.xxx.xx

Income 2X Rent? (by Heather [IL]) Posted on: Apr 22, 2012 7:19 PM
Message:

I would not go lower than 3x rent, also credit should be over 650 rating, I would not consider child support as income, and I screen very well. --64.134.xxx.xxx

Income 2X Rent? (by NC INVESTOR [NC]) Posted on: Apr 22, 2012 7:25 PM
Message:

I don't use x times rent. To me that is meaningless. I use DTI or debt to income ratio. Total rent plus monthly obligations ( car loans, credit cards, student loans, etc.) cannot exceed 41% of gross monthly. --173.188.xxx.x

Income 2X Rent? (by Kate [NJ]) Posted on: Apr 22, 2012 7:41 PM
Message:

To All: Your input is greatly appreciated.

And yes, NC, debts must also be considered. After subtracting them from the income, how many would still be (Net)I = Rx3? --68.39.xxx.xx

Income 2X Rent? (by NC INVESTOR [NC]) Posted on: Apr 22, 2012 7:50 PM
Message:

There is no way to estimate the net. It depends on their withholdings and they don't have to discuss that with you. Standard is to factor everything on gross pay. --173.188.xxx.x

Income 2X Rent? (by Ken [NY]) Posted on: Apr 23, 2012 4:30 AM
Message:

I go with 3x rent plus credit card payment,car payment etc but hardly ever see any of that other than occasional buy here pay here on a car,my tenants simply don't have credit cards or normal car payments although they do have stuff from Rent a center but that just shows the mentality.If you want to factor on net just get a copy of paystub,I get them all the time to verify income. --67.252.xx.xxx

Income 2X Rent? (by 574-Brad [IN]) Posted on: Apr 23, 2012 5:51 AM
Message:

I do GROSS income must be >= 3x monthly rent --66.228.xxx.xx

Income 2X Rent? (by John... [MI]) Posted on: Apr 23, 2012 6:22 AM
Message:

It depends on the type of rental too. I have some 2BR units in a smaller town -- for those, if I required 3X, they'd mostly be empty all the time. I require that their gross be 2.5X the monthly rent (of $450). That works in that area.

I also have a duplex in a college town. That one is completely different -- and I'd fully expect 3X or more without much difficult and get those sorts of applicants no problem all day. (I'd take 5 more of these duplexes if I could find/get them!)

So, monthly rent amount and location matters.

- John...

--216.111.xxx.xx

Income 2X Rent? (by Echo [GA]) Posted on: Apr 23, 2012 10:20 AM
Message:

I do 3X. --98.94.xx.xx

Income 2X Rent? (by Elizabeth gomez [CA]) Posted on: May 18, 2020 1:25 PM
Message:

If the rent is 1,180 and they are saying I have to make 2x the rent how much is that ? --76.246.xxx.xx

Income 2X Rent? (by Jasen Thomas [CA]) Posted on: Jun 25, 2020 2:42 AM
Message:

If they wanted me to pay 1,350 2x times the rent how much do I have to pay to move in what do I need my paystub. --72.220.xx.xxx

Income 2X Rent? (by JKJ [MA]) Posted on: Jun 25, 2020 6:06 AM
Message:

I go with 3 times the rent, works for me in my area. --174.196.xxx.xxx

Income 2X Rent? (by LisaFL [FL]) Posted on: Jun 25, 2020 7:35 AM
Message:

I use 3.5 as the bare minimum but normally hold out for at least 4 times. When it is four times I experience zero late pays. --216.186.xxx.xx

Income 2X Rent? (by WMH [NC]) Posted on: Jun 25, 2020 9:23 AM
Message:

3x the rent minimum plus maximum SD allowed by law these days, which is 2x the rent in NC. --50.82.xxx.xxx

Income 2X Rent? (by Kacey [FL]) Posted on: Jun 26, 2020 2:21 AM
Message:

--172.58.xxx.xxx

Income 2X Rent? (by Chelsea Jacobs [SC]) Posted on: Jan 23, 2022 10:04 AM
Message:

I make 25000 income on the side I babysit kids for 3 years now --8.48.x.xxx

Income 2X Rent? (by Dave [CA]) Posted on: Jan 23, 2022 11:35 PM
Message:

Combination of factors

...verifiable income about 4x annual rent or 40 X monthly rent

....credit scores 700 ish

....cash reserves

.....no felony criminal

....no bk or liens last 15 years

.....renters insurance mandatory

....or a strong co. Signer

.........units are staying vacant longer than ever.

.......blended households of multiple unrelated adults, kids and pets increasing with combined income and assets barely making limits..

--172.250.xx.xxx

Income 2X Rent? (by Bran-don White-house [WA]) Posted on: Jan 23, 2022 11:43 PM
Message:

Who pays rent? --172.58.xxx.xxx

Reply:

Subject:	RE: Income 2X Rent?
Your Name:
Your State:

Message:

Income 2X Rent?

Would you like to be notified via email when somebody replies to this thread?
If so, you must include your valid email address here. Do not add your address more than once per thread/subject. By entering your email address here, you agree to receive notification from Mrlandlord.com every time anyone replies to "this" thread. You will receive response notifications for up to one week following the original post. Your email address will not be visible to readers. Email Address: