3x Rule

4 Replies

 Me and my friends are trying to get a place to rent and we have found this wonderful duplex that's $1159. The agent told us that since me and one of my roommates are full time students that we only have to provide an school schedule but my other roommate is not a student an has to prove that he makes 3x the rent. 

This is where I get confused, why is just him that has to make 3x? He makes 16hr at 40hrs a week an still doesn't make 3x the rent by himself. I was thinking it was because he worked full time but I also work full time while being a full time student. Please help me figure this out I am so confused.

Generally I look for 3x the monthly rent per HOUSEHOLD, not per PERSON.

Originally posted by @Dawn Anastasi :

Generally I look for 3x the monthly rent per HOUSEHOLD, not per PERSON.

 This is correct although the 3x thing is just what most property managers do. Everyone can make up their own rules as long as they are consistent and that includes rules regarding roommates. As long as they follow the same rules for everyone they wont get in trouble with fair housing.

@Rhonda Burnette

You are correct that if there are three of you living in this property, your friend should only have to prove he makes 3x one-third of the rent. I would talk to your agent and clarify if this is not what they meant. If not, then I would make the argument as to why it is foolish to require him to make 9x what he is actually responsible for when it comes to paying the rent.

Originally posted by @Walker Hinshaw :

@Rhonda Burnette

You are correct that if there are three of you living in this property, your friend should only have to prove he makes 3x one-third of the rent. I would talk to your agent and clarify if this is not what they meant. If not, then I would make the argument as to why it is foolish to require him to make 9x what he is actually responsible for when it comes to paying the rent.

 The "tenant" needs to make 3X the rent.  The "tenant" can include three people.  Unless you are renting separate rooms, with different contacts for each room, then you don't get involved in who pays how much rent.  You just think of the fact that you have one "tenant," and that tenant needs to show ability to pay the rent.

I'm assuming this is what the manager was saying.  

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.