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We lease out a home in PA. A prospective tenant has great credit score but we have concerns that their income is insufficient. What can we inquire about income? Can we ask if they have any additional income to claim or other support? They do have $20k in the bank. We cannot afford to have tenants default on rent. Any advice? Their gross income is only 200% of monthly rent payment. He is married with 2 young children.
Patie W, VA on Saturday, March 31, 2018
RE: Concern about insufficient income of prospective tenant
Get a co-signer
Posted by Scott H, VA on Friday, July 6, 2018
RE: Concern about insufficient income of prospective tenant
If they have cash in the bank maybe ask for 6 months rent up front and offer to pay 1 percent interest per month on rents you are holding. There is always a risk with renters, if he is employed for several years that is a plus. all you can do otherwise is just use your best judgement. Good Luck!
Posted by Sandy P, MN on Monday, July 9, 2018
RE: Concern about insufficient income of prospective tenant
20
Posted by jahfwkwi j, on Wednesday, April 3, 2019
RE: Concern about insufficient income of prospective tenant
20
Posted by jahfwkwi j, on Wednesday, April 3, 2019
RE: Concern about insufficient income of prospective tenant
Hello. All great advice and spot on but in the end, it's still a judgement call. After 25 years as a landlord I've have tenants who made minimum wage and low 500's as perfect tenants and tenants with in the 800's with six figure incomes be nothing but absolute nightmares over rent. So there is no "magic formula". If possible, contact the landlord before the current landlord. Why, because, if they are good tenants, some landlords will lie to you just to keep them a little longer. And one last word of advice-if you are in the "We cannot afford to have tenants default on rent" situation then you are in a very precarious and dangerous spot. As a rule of thumb, you should have six months total rent sitting in a bank account doing nothing but collecting interest. That way, you will never be in a jam over tenant rent.
Posted by Matthew M, IL on Monday, April 15, 2019
RE: Concern about insufficient income of prospective tenant
Same question as Patie W. My property is in California. Thanks
Posted by Linda C, CA on Thursday, April 18, 2019
RE: Concern about insufficient income of prospective tenant
What does their credit report show? If they have good credit and no outstanding car loan, for example, they could be able to meet the rental obligations. If they have no credit, or bad credit, and/or a car loan, I would probably not rent to them. Are they having to pay for childcare? If so, they probably would stiff the landlord before stiffing the childcare--without childcare they probably can't work, and they won't be able to get a month of childcare in advance before paying for it. However, it would take you at least a month to evict them.
Posted by Barbara H, CA on Wednesday, October 2, 2019
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