In someone else's post, you stated the best indicator of a tenant's ability to afford your rent was 'what they are paying in rent now'.

I have an applicant who has been paying another LL $750.00/month rent for over a year, however, the house of mine she really wants is my only 3/2 house that will rent for $1,000/month once I finish the rehab in mid June. Her W-2 income and her husband's disability income combined comes to $3,800.00/month.

I'm not Brad, but does her current landlord say that the rent is always on time? Is the couple easy to work with? Do they respect the terms of the lease?

What does the credit report look like? Do they routinely pay all of their bills on time? Is their load of debt low enough that they would have enough left over to pay rent?

Did you verify the income? To me $3,800 a month TAKE HOME is enough to pay $1,000 a month rent. If that is gross income it is probably enough to pay $1000 a month rent if there aren't many deductions before they get their money. Child support payments and other large reoccurring debts might knock their take-home down below the level that they can afford the house. He is on disability, does he have high medical expenses?

Oregon,

Your questions are good but I have not taken the time to do a complete investigation of everything you are asking. I do know the $3,800 is Gross and not Net. Her credit report is pretty bad (550 fico) since she and her former husband declared bankruptcy 5 years ago when they got divorced. (BTW, all of my applicants and tenants have poor credit reports,.. it is what it is in Class C hoods).

Also not Brad, but I do ask about the rent they are paying when I make the land lord contact. Given what you've told us about their income, they pass the income must be 3x rent test, but now comes part 2: what other liabilities do they have? $2,000 month in credit card and car payments? Nope, not gonna work. $300 in payment? Yes, should work fine.

The rent they are paying now may or may not be useful info. If they are looking to downsize, it should be a positive. But if like this applicant they're trying to upgrade, then you have to do a little more work adding up their current obligations. Be sure to include minimum payments for everything on their credit report plus any deductions on their W-2 for judgment garnishments, alimony, child support, etc.

Sid,

I actually met this applicant (wife) 2 months ago when I was taking apps and showing my small 2/1 house (across the street) which rents for $750.00/month. She told me that house was too small for her family (husb/wife & 2 year old) and she wanted to know if I had anything a little larger. I told her I just bought the house across the street (March 17th) which is twice the sq. footage and would rent for $1,000./month. She took one look at it and said 'this is the house I want'. I told her she would have to wait 3 months to allow me time to rehab the house which will be finished in mid-June. She has waited too and now thinks she will be my first tenant for this house.

Roy,

Is this your passive aggressive way to stir up trouble by calling for me again?:)

Her $750 current rent is very important. She CHOSE that level of rent a year ago.

Need to dig deeper. What they are used to is more important than a rent to income formula. It indicates lifestyle.

I tell people to sleep d less than they can afford so they have money left over to take the kids out for pizza on Friday night.

I would ask her some leading questions. How are things going? Can you believe the price of gas? How are folks surviving!? Listen for her money anxiety.

Since she applied earlier check for an increase in income.

I’ll sign this with a different name so folks don’t get upset.

Thanks Brad20K,...no I am not trying to stir up trouble here. Now, if I wanted to make real trouble here, I would express my political views, or make a racial slur, or just mention that one of my female tenants was gifted with has a nice anatomy and has that come-on look in her eye.

Roy (again not BRAD20K)

Also Not Brad20K.