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Subject Expert
Are the <3.5% rates gone for good?
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We target 3.5-4x rent/income so for you that’s $168k-$192k/year… minimum combined credit score 680… but depending on the tenants situation, we might do a weighted average credit score… so in your case (835 x .59) + (651 x .41) =759…
So really the rent/income is too low… if you’re in a high COL area, for housing specifically, you could stretch it to 2.5x ($120k)… which puts them right on the cusp…
So it might not be a hard no… but if it’s been sitting on the market for a while, it might be worth the risk… just do a 1.5 month security, first and last…
I’d say… verify with the prior landlord that they were paying equivalent rent, and verify their employment and tenure… but if they were paying ~$4K and had no late payments, and no issues… and they have been employed with their current employers for >2 years… then it might be worth a go ahead…
But I would do that due diligence… the niece having credit cards in collections… we’ve all been young before… and to still to have a 651, means it hasn’t wrecked their credit…
I have a 2BR condo across the river, Hoboken by the terminal, that I’ve been renting to two young guys @ $4,500… I think their combined income was ~$165K when they signed two years ago… their credit wasn’t the best, so I required a parent as a guarantor… they just resigned for another 24 months… and never had a problem…
No. You have to assume that you are renting to the $44k person with 635 credit score
Subject Expert
I expect that the aunt is going to be paying the majority of the rent. The term “niece” implies that she may be younger, so the lower credit score and income doesn’t concern me too much.
Is this the only applicant you have? They wouldn’t be my first choice for a tenant, but far from my last choice.
She’s around 30. It’s been on the market for around two weeks and this is my first application.
Are you sure that it is priced correctly if it took two weeks to get the first application?
It’s on Long Island where there aren’t many entire homes available so not many comps but again the school district is crap. My realtor said the value is closer to $3800 but was willing to try $4k because it’s by far the nicest renovation done in the area so not significantly over priced. My biggest mistake I think is not putting it on the market July/early August so people could be ready before school started. But you live and learn.
The best tenants I’ve had have all been real people with real stories, lousy credit, limited employment histories, and they have generally always paid rent on time and taken great responsibility & care of my properties (fingers crossed this continues!) but I wanted to share that I’ve also had tenants who were data scientists & mgmt consultants earning 10X rent, with 780+ FICO’s who are such a pain in the neck i never want to rent to anyone who appears that amazing on paper again
It turns out they both have second jobs. The second applicants second job brings in another $30k. So I’m going to move forward. Thanks everyone!
Yikes. No.
Thank you. What criteria would you be looking for for income, credit, and savings? I was thinking 35x rent so $140k minimum total and 670 credit score minimum. Does that sound correct?
The challenge is the house is beautiful, good neighborhood, but the district stinks, so $4k is high.