I have an applicant who monthly wage is $2000 and he is trying to rent a apartment for $1220. The owners of the apartment want to deny the applicant because he may have problems making rent. The applicant has a wife and a newborn child. If he earns more, the owners don't have a problem.
2007-04-18 04:23:43 · 17 answers · asked by JR 2 in Business & Finance ➔ Renting & Real Estate
That's a pretty sweet apartment. Let him rent it... if he defaults, you can sue him for his child.
2007-04-18 04:31:36 · answer #1 · answered by Josh E 2 · 0⤊ 1⤋
The traditional rule is that monthly housing costs (excluding utilities) should be no higher than 25% of the monthly gross income. I realize your situation is a rental situation but in mortgage situations, lenders traditionally limited the monthly payment (including principal, interest, taxes and insurance, called PITI) to 25% of the monthly gross income.
Source: Retrieved from MSN Money.Planning.Savings on 24 July 2006
Knowing no other facts, I would deny the application if I were responsible for the decision. The rent will be just way too high for the applicant to pay. You are asking for trouble if you rent to him, IMHO.
The good news is you can protect yourself from any housing discrimination claims as long as you consistently apply this rule to all applicants. Keep the paperwork, even on your rejected applications, so you can prove that in court.
When you break the bad news to him, it softens the blow when you disclose this reason to him and he knows you are merely applying an objective industry standard and there is nothing personal about the decision and that your rejection in no way reflects upon his character.
2007-04-18 04:37:29 · answer #2 · answered by Herx 1 · 0⤊ 1⤋
The rule is 1/3 of his income should be for rent, but I would talk to the landlord about reducing the amount, $1220. for an apartment is ludicrous, not to mention greedy. Apartments are supposed to be for lower income families that can't afford a house, not for some greedy individuals to profit off of less fortunate. I feel the same way about all those trying to flip house for inflated costs they are only adding to the burden of those young families trying to start out. That's why they call them starter homes. And people wonder why there are homeless.
2007-04-18 04:40:59 · answer #3 · answered by Anonymous · 2⤊ 1⤋
I rent out a home. If I knew this info before hand I wouldn't rent to them. It could possibly cause problems later down the road. If you have other better qualified applicants rent to them and tell him your sorry the house has been rented. If not then talk to him and tell him your concerns, does he have a rental referal from where he lived before that you can verify payments? I would ask him to bring you a current copy of his credit file to see how he pays his other debts. You have a right to all this info. After all if he rents for you he is responsible for your property and the home. You would not want someone in your home who maybe would damage it or give you problems with maybe not wanting to leave etc if they can't pay.
2007-04-18 05:32:38 · answer #4 · answered by Anonymous · 0⤊ 1⤋
Totally agree with Herx. The portion of income to rent is far too high against the family's income.
Before they default on the rent itself, you run the risk of them failing to clean, maintain and repair items that are their own responsibility.
Do you want to take the risk that their electricity is cut off, forcing them to use a space heater (fire hazard) or the pipes freeze? What if they accidentally knock a hole in a door or wall? If the waterbed leaks? If the baby (toddler) draws on the walls with crayons?
If this family experiences any other difficulty (car dies, medical expenses, whatever) the owner is sunk.
2007-04-18 05:16:27 · answer #5 · answered by Sue 5 · 0⤊ 1⤋
With a new born and a wife, I think that an apartment at that price would be a mistake for that family to rent. If you deny him, you will be saving yourself and them a huge headache in the long run. I would have no problem denying him this rental...
2007-04-18 04:30:11 · answer #6 · answered by Injun 3 · 0⤊ 1⤋
Unless there is a way for that family to get some sort of public aid to help pay with the rent, and/or there is income he is not declaring and you don't want to ask him how the is going to be able to afford to live there, then by all means do not rent to this family. 61% is too much.
2007-04-21 10:43:19 · answer #7 · answered by Hot Coco Puff 7 · 0⤊ 1⤋
Meeka - use your brain and remove your emotions from the equation. If you were a landlord I'm sure you would want to know the renter's income and credit score as well. It's nothing personal but the landlord MUST know from a business perspective that the tenant can afford to pay the rent.
2007-04-18 06:14:36 · answer #8 · answered by Anonymous · 0⤊ 1⤋
It does sound a tad high, but surely as you're the professional you should be the one who knows?
The general rule of thumb is no more than 1/3 of your wages on rent or mortgage, I believe.
2007-04-18 04:31:11 · answer #9 · answered by Anonymous · 0⤊ 1⤋
I would deny him. Simply bc you would be doing him a favor. Having a newborn is expensive. How would he devote that much to rent, pay power bill, phone, and general living expenses....plus support wife and baby??? Not to mention if he has a car payment, credit cards etc. Its setting him up for disaster if you rent to him....for his sake only.
2007-04-18 04:29:07 · answer #10 · answered by Just here. 4 · 0⤊ 1⤋
Yeah that isnt good unless he has a source of other income. With 2 dependants to support he isnt going to pay 60% of his income to just rent. Rent should be 40% or less.
2007-04-18 04:28:45 · answer #11 · answered by Anonymous · 0⤊ 1⤋