Income Criteria for Multiple Occupants
Seem like a silly question but I'm renting out my first rental in the Bronx. For applicants with multiple adult occupants, do you take the combined income for everyone into your income criteria? For example if rent is $2,500, you would expect total gross income of 7,500/month if my criteria is 3x income?
Additionally, do you all generally use a smaller income criteria if the rent is inclusive of utilities? I own a multi-family house that was converted from a single family, therefore, there is only one gas meter. It may be easier to include utilities in the rent.
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Seem like a silly question but I'm renting out my first rental in the Bronx. For applicants with multiple adult occupants, do you take the combined income for everyone into your income criteria? For example if rent is $2,500, you would expect total gross income of 7,500/month if my criteria is 3x income?- This approach should be fine. For my units, I usually look for someone with annual income 40x the monthly rent so I know they are financially secure. Also credit score 680 with no missed payments over the last 2 years and also check their criminal report just to make sure you know who these tenants are, as the eviction process in New York city is very long and expensive. Better to be safe than sorry.
Additionally, do you all generally use a smaller income criteria if the rent is inclusive of utilities? I own a multi-family house that was converted from a single family, therefore, there is only one gas meter. It may be easier to include utilities in the rent. - yes this is a good approach. You'll just have to figure out how much utilities normally are for your calculations. Also control the thermostats so the tenants don't jack up the heat in the winter giving you a massive bill.