Landlord · Sioux Falls, SD · Member since 2016 · 100 posts · 58 votes
I have a married couple prospective tenants that look ideal; credit scores above 800, previous homeowners, etc. Rent is $2400/mo so I require $7200/mo income. Husband is currently unemployed (due to COVID) and wife makes $10k/mo gross but only $5800 after withholdings. So they meet the gross income = 3x rent but not the net income = 3x rent. Husband is currently collecting unemployment and plans to get a job but I don't generally consider unemployment in my income. Thoughts?
Rental Property Investor · Concord, NC · Member since 2016 · 1k+ posts · 3k+ votes
5y
They had me at 800 lol. Not really though. I keep my rents around $100 below market and look for good tenants that stay for several years. Turnover cost $ and interrupts important stuff like fishing and goofing off. I'd decline since my gut tells my they will buy and move in a couple years.
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
5y
@Sarah B. have you thought of selling your property in Oregon and investing more in Sioux Falls? You can probably exit with decent profit and exchange into a larger property. Oregon is anti-landlord and it will only get worse. Be very careful screening during COVID due to the eviction moratoriums. Only take cashiers check for deposit and first months rent.
As far as this particular applicant, I like the 800 credit score. They have something to lose by not paying you.
@Sarah Buchanan if they're fishermen or in some kind of related profession, then definitely want to go with net income. But if they're in a sanitation line of work, it's much better to evaluate according to their gross income.
@Dan DiFilippo Underrated comment! I logged in just to upvote.