What rent can they afford?
- Thread starter Canasta
- Start date
Charge market rates or a little under if they are good tenants. Work this out by looking at re.com and also ringing a few agents and asking what a house of your description would rent for in the current market.
If they cannot afford it get new ones. Tell them though that this is market rent so that's why you have to increase the rent.
If they cannot afford it get new ones. Tell them though that this is market rent so that's why you have to increase the rent.
Different agencies different levels for the amount they can afford. Department of housing for example will support a tenant moving into a house where the rent is 55% of their weekly or monthly income. I tend to look at it as how much disposable income they are left with per fortnight / week at an estimate to see if I am comfortable they can afford it. e.g;
Rent - $320 per week
Bills - $100 per week
Groceries - $100 per week
Petrol - $40 per week
Total - $660.00
So say their combined income was $1800 per week - Yup, I would be happy to rent to them, even at $960 per week income they have $300 disposable income left. If they were only earning $700 per week - I'd be less inclined to rent to them.
Definately pay attention to their previous rental reference and pay attention to how much rent they were paying at their last place, it gives a good indication of what they can afford.
Why not try a new PM first? If you search the forums I'm sure you'll find recommendation for people in your area.
Rent - $320 per week
Bills - $100 per week
Groceries - $100 per week
Petrol - $40 per week
Total - $660.00
So say their combined income was $1800 per week - Yup, I would be happy to rent to them, even at $960 per week income they have $300 disposable income left. If they were only earning $700 per week - I'd be less inclined to rent to them.
Definately pay attention to their previous rental reference and pay attention to how much rent they were paying at their last place, it gives a good indication of what they can afford.
Why not try a new PM first? If you search the forums I'm sure you'll find recommendation for people in your area.
lol... yet, your PM is hopeless? Seriously? I guess they can do one more thing than you.
Agree with Sez, look at how much money they have left over after bills and rent. If it's less than $100 per week, I am unlikely to do it unless they have solid rental history.
From memory, "affordable" housing is estimated at 30% of net wages for a person/persons.
On the odd occasion I have placed tenants into properties where they have far less disposable income - However, they have also had very solid rental history and a large savings account to help out. Wonderful tenants.
From memory, "affordable" housing is estimated at 30% of net wages for a person/persons.
On the odd occasion I have placed tenants into properties where they have far less disposable income - However, they have also had very solid rental history and a large savings account to help out. Wonderful tenants.
Thank you , I will keep this in mind.
ignore Bon like the rest of us - he's a bitter tenant who's bought his problems onto himself thru his over reactive anger but refuses to admit it.
What problems have I brought on myself, lizzie? Please tell me since I seem to be unaware.
