Tenants not meeting Income Requirement but High Savings?

6 Replies

Hello,

Apologize if this has already been discussed(I'm sure it has) but I cannot find.  If I'm looking to rent out my unit and tenant A comes along who does not quite meet the income requirement but can prove they have quite a bit in savings($20/30K+), is it worth looking into?  I'm sure there are tenants out there who do not work but have inheritance or something which can afford them a decent rental.  This must come up.

Is there a certain savings threshold you look for (above $30K for example) or how do you handle these prospective tenants?  

Thanks,


Tim

@Tim Kaminski I would keep looking. 20k/30k is not that much money anymore. What if you sign a lease with them and the next day they pay cash for a car and wipe out that savings? Especially with the eviction moratorium that never seems to end, you don't want to be stuck with a mistake. Surely there are better prospects out there. 

@Julie Hartman   Thanks for response.  Is there a number that works for you?  $50K? $100K?  Surely there are ppl who are viable tenants, have money, but for whatever reason, dont have a high income.

Originally posted by @Tim Kaminski :

@Julie Hartman  Thanks for response.  Is there a number that works for you?  $50K? $100K?  Surely there are ppl who are viable tenants, have money, but for whatever reason, dont have a high income. 

We don't run into it very often but if we do, it has to be part of the larger story. For example, are they retired with a hefty savings, 401k? What is their credit score? Did the large savings come from selling a home? What type of jobs do they have? If everything else looks good, we may take a chance but ask for a larger deposit. We have had a couple of trust funders and it didn't work out so well. People generally take more responsibility for things they actually work for. 

 

Originally posted by @Julie Hartman :

@Tim Kaminski I would keep looking. 20k/30k is not that much money anymore. What if you sign a lease with them and the next day they pay cash for a car and wipe out that savings? Especially with the eviction moratorium that never seems to end, you don't want to be stuck with a mistake. Surely there are better prospects out there. 

You realize well over half the country does not have a $1000 for an emergency fund right?  

As far as spending the money the next day, a high income no savings applicant could just as easy lose their job the next day.  Savings to me at least shows a level of discipline financially

I would definitely consider them with a good rental/work history

 

Originally posted by @Greg H. :
Originally posted by @Julie Hartman:

@Tim Kaminski I would keep looking. 20k/30k is not that much money anymore. What if you sign a lease with them and the next day they pay cash for a car and wipe out that savings? Especially with the eviction moratorium that never seems to end, you don't want to be stuck with a mistake. Surely there are better prospects out there. 

You realize well over half the country does not have a $1000 for an emergency fund right?  

As far as spending the money the next day, a high income no savings applicant could just as easy lose their job the next day.  Savings to me at least shows a level of discipline financially

I would definitely consider them with a good rental/work history

That is absolutely true. Which is why I said it has to be part of the larger story of their history/background. I would not simply look at a number in a bank account and nothing else.