Landlord Quick Tip

Tip #55: Run the Numbers
When screening your tenants, along with a credit history, be sure to verify your applicant’s current income and consider their overall budget in light of their new rent payment.
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The basic rule of thumb is that rent should take up about 35% of a tenant’s take-home pay.
However, that ratio will be higher for low-income earners who often can’t find housing for 35% of income. A tenant can pay more if you offer amenities like easy bus or train access, free parking or a fitness room. Another reason to go higher: you offer energy-efficient upgrades. With the money a tenant saves on utilities, they can afford a higher rent payment.
See last week’s Landlord Quick Tip.
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