With the disability income, you should add 25% to it to calculate gross income, because he's not being taxed on his income. I forget the exact term, it's called up-something .
I would avoid the contractors. I had an opportunity like that once where a company wanted to rent a unit for traveling nurses. I discussed it with the owner and our decision was that we wanted to only rent to individuals who had skin in the game. If you do a corporate rental, you have no control over the actual people inhabiting the unit.
Plus, as I recall, you can't take the corporation to small claims court, because they're a business - so if you had to sue, you'd have to hire a lawyer and do it in whatever the equivalent is for your non-small-claims court.
1) Are you counting his VA disability income, which is generally tax-free?
This, I assume, is the only income the person has. That being said, I don't see how the payout for VA disability is >$3,300 a month.
My concern at this time is if I go through with the application and everything works out, it's going to come out to not meeting this requirement and I'll be like, "Come on, man..."
VA disabilities CAN be significant IF the veteran is 100 percent service connected for this. As previously mentioned this will also increase for vets with spouses, children, etc.. However, not all veterans are 100 percent service connected and there is a big jump between, say 60 percent service connected disability and 100 percent.
Your applicant can provide you documentation regarding how much he receives each month. And yes, this is tax free.
Keep in mind that for disabilities based on certain medical conditions (PTSD being a major one) the VA has a nasty habit of requiring the younger veterans to undergo periodic testing to make certain they continue to have this diagnosis; if they decide they have "improved" they will attempt to reduce the disability. Vets can, of course, go through the process of disputing these reductions but many feel this is a hopeless venture.
I received the proof of disability income. The income I'm looking for is $3,300. The applicant's disability income is $2,9xx. Sue K stated I should increase the non-taxable income by 25%, which raises the income to $3,6xx. So, all good?
A new question: what do you do (or think) about tenants that want to move into your rental, but MAY have bad blood with their current landlord/complex?
I have to contact their current landlord/complex and I don't want things to get messy. What if the landlord/complex management gets angered at their current tenant for wanting to move out? I wouldn't want the tenant to break their lease and all that negative jazz.
I received the proof of disability income. The income I'm looking for is $3,300. The applicant's disability income is $2,9xx. Sue K stated I should increase the non-taxable income by 25%, which raises the income to $3,6xx. So, all good?
The 25% bump for non-taxable income is a common practice in the mortgage industry. It's almost like landlords steal underwriting criteria from the mortgage industry and apply it to reviewing tenant applications. :P
I received the proof of disability income. The income I'm looking for is $3,300. The applicant's disability income is $2,9xx. Sue K stated I should increase the non-taxable income by 25%, which raises the income to $3,6xx. So, all good?
The 25% bump for non-taxable income is a common practice in the mortgage industry. It's almost like landlords steal underwriting criteria from the mortgage industry and apply it to reviewing tenant applications. :P
I learned this from you, I think :-) But, this makes sense doesn't it? To also apply it to income for a rental?
I received the proof of disability income. The income I'm looking for is $3,300. The applicant's disability income is $2,9xx. Sue K stated I should increase the non-taxable income by 25%, which raises the income to $3,6xx. So, all good?
A new question: what do you do (or think) about tenants that want to move into your rental, but MAY have bad blood with their current landlord/complex?
I have to contact their current landlord/complex and I don't want things to get messy. What if the landlord/complex management gets angered at their current tenant for wanting to move out? I wouldn't want the tenant to break their lease and all that negative jazz.
I think the income is okay, then. As far as current relationship with landlord - you need to do whatever screening you need to do, regardless of how that may impact the applicant with their current landlord.
To be honest with you, I did not have a good relationship with my last landlord (I just moved). So, I didn't tell him I was looking and waited until I had an application in progress before I gave him a heads-up, and then only from my new manager's office, who wanted his fax number.
However, the only reason we had bad blood, which I never told my current manager, was because I had filed numerous complaints with the housing authority and the city manager over horrendous building violations. However, I caused no problems with other tenants, always paid my rent on time, left my place spotless, etc.
I waited to see if my old manager would leave me a bad reference, and he did not.
But, honestly, if a current manager actually gives a bad reference, that's weird. If they don't like the tenant, they'd most likely give a glowing reference to get rid of them. If you have a current tenant asking you not to contact their current manager - something's probably amiss, as in they aren't actually renting, have already been evicted, staying with their mother, etc.
Do thorough vetting with current, but especially previous landlords who don't have anything to lose by being honest. Check everything thoroughly, that's your best defense against bad tenants. And if an applicant asks you not to contact their current landlord, that's a giant red flag. In fact, I'd probably deny them based solely on that. I'd tell them, sorry, I don't rent to applicants who don't want me to contact their current landlord. Next. Totally legal.