Rental affordability - what %?

From: Nigel W

Here's one for all you battle scared veteran self-managing landlords.

How closely do you screen tenant's ability to afford the proposed rental? By way of example, if their net weekly income was only $400 would you be comfortable signing them up for a lease where the weekly rent is $150 ie a whopping 37.5% of their net income?

Is there a rule of thumb like the servicability ratios the banks apply to see if you can afford a home loan?

(Naturally they're not even getting a look at the keys until the bond and 2 weeks' rent in advance has been received!)

Thanks in advance.
Last edited by a moderator:


Reply: 1
From: Sim' Hampel

I thought that the rule of thumb was 30-35% of income. I have heard of people paying up to 50% of their income in rent on Sydney's North Shore. The receptionist at my last job was like that. She lived in a place in Neutral Bay that was nicer then mine in Artarmon (not too far away)... just so she could live in a "cool" area. I earned 3 times what she did. *sigh*.

Last edited:
Reply: 1.1
From: John P

Wow Sim, it just never ceases to amaze me the lengths people will go to just to look good. More of the same please!!!!!!!!

That reminds me,I must go buy myself a second pair of work trousers from Kelly Country.......It thinks it's the understains that are barely holding these ones together

Johnny P
Last edited by a moderator: