I'm looking for apartment and need to move on oct.1st...?

Question

i was wondering if you could explain to me how your monthly income works...

does it go off your gross income? and do thay take that, then mulitply it by 9, since there has only been 9 months in the year so far... im so confused. im still fairly used to this...

im 19 years old, this will be my second apartment, and my "gross income" is over 11,700. i'm scared i wont get qualified for it because i dont make that much...

if i have made 11,700 since jan. how much can i spend on an apartment, for me to get approved... most apt. want 2.5 to 3 times the rent, but i dont know

am i even making sense? :(

Answer 1

Your $11,700 is your gross income and approximately 1/3 will be taken out in taxes and other things right off the top before you even see your paycheck.  What you need to look at is your net income (after taxes, the actual money you receive).  Many places will expect your to make 3x your net income in order to qualify to rent.  But other places look at your credit history, past rental history (will call up your past landlord) to see how you manager your funds and if you've never defaults on rent or credit payments, they may rent to you even though you don't make 3x your rent per month.  However, you have to realize that basically you should be budgeting 1/4 to 1/3 (1/3 to 1/2 is more realistic these days) of your monthlly net income towards rent alone, which will reduce the money you have left for EVERYTHING else including car payments and upkeep, commuting, clothes, utilities, laundry, food, etc.  What you really need to do first is write up your monthly budget for everything and determine what you can afford to put towards rent every single month--and how much you can afford to put down upon signing since many places require you to pay your first month's rent AND last month's rent AND a month's rent on deposit at the time of signing your lease.  That's 3 month's rent right there (or more since laws vary from place to place).  Ask a good friend who has good financial management skills or your parents to show you how to draw up a budget and then stick to that budget or you'll go into debt real fast.

Answer 2

It depends on the management company on if they go by gross (before taxes are taken out) or net pay (after Taxes are taken out) so you will have to ask them before you do the application.

most places ask you to make more than 3x the monthly rent so if your apt is $650 you will have to show that you make more than 1,950.00 per month. then just ask the leasing agent if that is before or after taxes are taken out. they will be able to tell you.

according to what you told me you make about 1,300.00 a month? so it would be better for you to work with a company that goes by gross income. because other-wise you would have to subtract about 30% for taxes and then you would be left having to find a Very cheap place to rent.

Some places also do a debt to income ratio. and you will have ask them how that works... I have never understood it myself.

Answer 3

Most places require that you make 3x your month rent.  So say your rent is 800.00 a month...you would be required to make 2400.00 a month.

Answer 4

.    The landlord is looking for the "total package".   Good job, good credit, track record of saving money,  no evictions,  not eluding police.  Then you get the keys.

Answer 5

They are looking for monthly income.

So, at 11,700 this year you earn 1462 a month and can afford an apartment for 487 a month.

If the 11,700 is your yearly pay, you earn 975 a month and can rent for 325