What’s the general rent/income ratio some of you guys out there use when screening tenants?
I like to see income at least 3x rent, 4x is better…just making sure I’m using fairly acceptable numbers when screening tenants…thanks!
Income of 3 times the rent is standard because there are government calculations that assume people spend 1/3 of their income on housing. That isn’t necessarily true anymore, especially for low wage earners in high cost states. I look at balances owed on the credit report to make sure they can afford the rent. Their income may be sufficient under a 3x or 4x guideline, but they will have trouble if they excessive credit card balances or a high car loan.