We have a beautiful 5 bedroom 3 bath that we are going to be renting for $5500 a month and are considering lowering the income requirement. Normally we usually require income of 3x the rent or at the least rents being 40% of the income. Our thought process is that a family should be able to easily live on much less than $11,000 a month after housing is paid for.
We are in Los Angeles 2 block from Culver City if you were wondering.
What are you thoughts? anyone tried doing the same and found it worked or discovered problems?
As long as the applicant has stable job history, verifiable income, and good credit, I think you'll be fine - especially at this price point.
Most of LA is paying the highest % of their income on rent compared to other Americans.
@Alma Mills House rules for bank is 43% of your gross income, less monthly expenses can go to housing, banks established that for a reason, to keep them out of trouble, adjusting your criteria might be possible, but you aren't that as secured as a bank. Also remember, the higher the person's income are, the more their spending habits, the more volatile they are as to handling finances when S hits the fan.