Did you know the average American makes 54,000 dollars per year?
As a property owner, it is your job to make sure you verify if your tenants are right for your property. Part of this is obtaining proof of income or proof of employment.
Another part is knowing the rental income requirements so you can decide if a person is the right one to rent to. You want to be sure that you'll get your rent money.
In this article, we'll outline the basic rental income requirements and how much your tenant should make. We'll also explain what's involved in tenant screening and how to make the process easier on yourself. All you need to do is keep reading.
Rental Income Requirements
Understanding the rental income requirements to set for your tenants is as simple as knowing the rent to income ratio. The rent to income ratio is a simple tool a landlord can use to decide how affordable a rental property would be for a tenant.
Ideally, rent should be no more than thirty percent of a person's overall income. This means that a tenant should earn roughly three times the amount of the rent required.
The reasoning for this is simple. If a tenant has a higher rent to income ratio, they will have a harder time paying for everything they need to pay for. When they need to choose which bills to pay, they might choose not to pay rent.
Making sure a tenant can afford your property means you'll get the money you deserve. It also means you won't have to go through the difficult process of eviction.
What Else Is Involved in Tenant Screening?
When completing tenant screenings, income requirements are one of a few things to look out for.
A potential tenant telling you what income they make is good, but you'll need proof of income. You'll also need proof of employment, so you know that the tenant will keep having the income levels they need.
Another thing you should do is run a background check on your potential tenant. You'll want to be sure that they don't have a record of getting into legal trouble. Essentially, you're looking for an average adult who can be responsible.
Remember that if this feels too daunting to you, you can always hire a property management company. One of the many things property management companies do is work on getting you quality tenants.
Reach Out to Us
Now that you know all of the rental income requirements as well as other factors of tenant screening, are you prepared to get tenants of your own? Or would you rather hire a property management company to do that for you?
If you're willing to accept help, then you should reach out to us. Here at Green Tree Property Management, we are dedicated to giving you the level of help you deserve.
So don't wait-fill out the form today and we'll contact you as soon as possible!
