Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime

Let's keep in touch

Subscribe to our newsletter for timely insights and actionable tips on your real estate journey.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions
Followed Discussions Followed Categories Followed People Followed Locations
Tenant Screening
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 2 years ago on . Most recent reply

User Stats

10
Posts
3
Votes
Cesar Garcia
  • Los Angeles, CA
3
Votes |
10
Posts

Income Verificatiion and Screening

Cesar Garcia
  • Los Angeles, CA
Posted

I have a quick question. When screening prospective tenants we look for an income at least 3x the rent amount. So for example if we charge 4k for a house that means they have to make at least 12k to qualify. Now my question, 12k income is that gross or net income? Having a hard time calculating how much they can afford from the gross amount.

Most Popular Reply

User Stats

2,323
Posts
1,584
Votes
Richard F.#1 Tenant Screening Contributor
  • Property Manager
  • Honolulu, HI
1,584
Votes |
2,323
Posts
Richard F.#1 Tenant Screening Contributor
  • Property Manager
  • Honolulu, HI
Replied
Aloha,

It should always be your muliplier (3X) times Gross income...BUT don't fall for the old "I have an internet business/I drive ride share so no paystubs". In those cases you must look at them as a business...great they have all that income, but they ALSO have a cost to produce/provide whatever they are offering. You need to estimate their business costs, as well as their "living" expenses.

Also, I have seen a lot of posters that hold each individual to the rent multiplier. That is ridiculous. Total household verifiable income (minus the business expenses noted above) is what you look at, whether family members or roommates (in addition to full credit/background on all adults in the group). Roommates would usually require their own co-signer if needed, at least in the case of full time students.

Loading replies...