Income to Rent Amount ratio (lease, tenant, deposits, credit)

[WorldKlas]

I have a property for lease listed for $1825/month. In my requirements, I indicate that minimum verifiable annual household income to qualify is $70K.

Utilities are not included, so the tenant must pay for water and electricity. In addition, most of my tenants over the past 15 years have had car payments.

A few people have messaged me to question the income requirement, stating the “norm” income requirement is 2.5x rent.

Do you think my requirement of $70K household income is unreasonable?

[mathjak107]

manhattan goes by 40x income which would be 73k. the boroughs are less . but we do have stricter requirements

[Upminster-1]

If you find a tenant who qualifies under your criteria, then it is not unreasonable. It shouldn't matter what other people have for criteria or what the "norm" is. By having tighter requirements you are simply protecting yourself more than most people are. I would do the same.

[Flamingo13]

I've always read that you shouldn't pay more than 30% or or so for you rent and expenses.

[mathjak107]

Originally Posted by Flamingo13

I've always read that you shouldn't pay more than 30% or or so for you rent and expenses.

1825 x 12= 21900 a year

40 x 1825 rent = 73,000


30% of 73000= 21,900


so 30% is 40 x income

[oregonwoodsmoke]

I require that the monthly TAKE HOME be three times the rent.

I know landlords who require 2 1/2 times the rent and I know landlords who require 4 times the rent. It is up to the individual landlord to decide what to charge.

The same for deposits. Sometimes it is one month, sometimes it is two months, sometimes there are extra deposits for pets, or for bad credit, or lack of time on the job. Each landlord sets his own criteria (with some state law restrictions).