If we are trying to rent an apartment and they say that our income needs to be three times our monthly rent are they referring to our income before or after taxes?
2006-07-30 17:01:02 · 7 answers · asked by annie001122 2 in Business & Finance ➔ Renting & Real Estate
thanks guys. and spin its in southern cali. torrance area
2006-07-30 17:10:19 · update #1
Most likely after taxes
2006-07-30 17:04:28 · answer #1 · answered by Anonymous · 0⤊ 2⤋
All of the formulas like this for renting, buying homes, loans, etc. are before taxes. It's just a ballpark figure, though. If you have a lot of other things you're paying for, you might want your rent to be even less than that. But if you're planning to live pretty spartan, then you can pay more in rent.
2006-07-31 00:06:00 · answer #2 · answered by Pink Denial 6 · 0⤊ 0⤋
Gross, before taxes. But, if you are close, there is some 'fudging' that can go on so it isn't really important.
Who ever told you this acutally cut you a break. The 'rule of thumb' acutally says: 25% for housing and 33% for total indebtiness.
2006-07-31 00:11:01 · answer #3 · answered by scubadiver50704 4 · 0⤊ 0⤋
They are referring to your income after taxes.
2006-07-31 00:05:30 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Gross income. Before taxes. That's the standard for virtually all credit applications.
2006-07-31 00:05:10 · answer #5 · answered by Bostonian In MO 7 · 0⤊ 0⤋
What the crap? I never heard of such. Where are you renting (what city)?
It must be before taxes. Everyone else bases your income before taxes, such as county, state and city.
2006-07-31 00:04:48 · answer #6 · answered by Anonymous · 0⤊ 0⤋
total gross monthly income.. (that means before taxes or any other withdrawals from your check)
2006-07-31 00:07:34 · answer #7 · answered by Resasour 4 · 0⤊ 0⤋