Does this person make enough money to rent an apartment?

Question

A young couple wants to rent an apartment from me; the rent is 670, and I figure about an extra $250 all told, for utilities. I know that's accurate due to past experience. They are young, and make about 2,300 a month total take home. I have that at about 40% of their total income. It seems okay to me.....And I don't want to hear about other potential lifestyle issues, just the cash flow situation.

Answer 1

NOPE

1/4 to maximum 1/3 of income for housing

they're stretched too thin

and the cash flow situation is relevant to potential lifestyle issues

Answer 2

Well, not to be rude, please don't take it that way. But how they spend their money is not your concern, just the rent is. If they eat out every day, oh well, if they have auto loans, oh well. You see the numbers, they make about a months rent in a week. Don't worry, they'll be alright.

Answer 3

no.  if you were earning 6000 a month, then 40% would be ok since the other fixed costs (food, insurance, etc) would take a smaller slice of the income.  However, with a lower income, the rent ratio should be around 20 to 25% MAX!!!

I never rent to anyone with a ratio of less then 25%.  Plus they need to show at least 3 months rent payments in the bank.

This couple, while I'm sure is very nice and means well, JUST CAN"T AFFORD this place.

Answer 4

I would check with them to see what other payments they have going out , like car payments, school loans. I would check to see if any of the income is coming from source other than work, like welfare. And if it is check how do they expect to be on it.

You might check to see if they are any businesses that do screening of tenants in your area. That way it clears up your time and they usually check more area than you would.

Answer 5

they could pay the rent, but with phone and cable tv, gas and food they will be broke, so then you might not get your rent