Whats the highest % of income you accepted ?

Due to Perth's high vacancy rate I had to drop the rent down $30 pw. It took 8 weeks to secure someone. Luckily it was a break lease and I'll only be out of pocket 3 days once my tenant moves in.

Anyway in the end I decided to sign up a tenant who's wage will go towards 40% of the rent. I'm taking a risk here but my gut was telling me to give them a go, as I haven't had any other applications. I'm grateful I have someone. I was a bit stressed. It's a mother and young teenage daughter moving in to my studio. Wife seperated from husband. Not ideal but I've been told they have good references and they seem nice. :) oh and she has around $5000 in savings. Hopefully she is a good budgeter.

How about you? Anyone sign up someone who is spending half their pay packet on the accommodation?
 
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I suppose it depends in the context of their overall living expenses. After paying the rent, will she have enough money to pay the other bills & send her daughter to school?

Are there reliable alternative sources of income? Centrelink, husband, etc?
 
Due to Perth's high vacancy rate I had to drop the rent down $30 pw. It took 8 weeks to secure someone. Luckily it was a break lease and I'll only be out of pocket 3 days once my tenant moves in.

Anyway in the end I decided to sign up a tenant who's wage will go towards 40% of the rent. I'm taking a risk here but my gut was telling me to give them a go, as I haven't had any other applications. I'm grateful I have someone. I was a bit stressed. It's a mother and young teenage daughter moving in to my studio. Wife selected from husband. Not ideal but I've been told they have good references and they seem nice. :) of and he has around $5000 in savings. Hopefully she is a good budgeter.

How about you? Anyone sign up someone who is spending half their pay packet on the accommodation?
It sounds okay, remember there probably will be child support, family tax benefits etc etc so you might not known the full picture.
 
I'm confused, is it a mum and daughter pr husband too?

I assume she meant "separated" & not "selected" *Wife selected from husband*
and also she instead of he when talking about savings...unless after divorce she'll get those $5000 :p
 
Someone spending 40% of income on accommodation if they earn $500/wk (ie $200/wkrent) is more difficult than someone earning $2000/wk paying $800/wk rent.

Just a matter of proportions.
 
My biggest risk tenant wise which turned out to be my best tenant was a single mother of 2 whose rent was ~60% of her centrelink payments. She was not employed otherwise and apparently not receiving child support either.

She stayed for approx 3 years and did not miss one single payment (centrepay) and moved out recently to attend uni in a neighbouring town.

Next set of tenants were (on the face of it) the 'safe bet' but are now breaking lease next week 8 months early....
 
It sounds okay, remember there probably will be child support, family tax benefits etc etc so you might not known the full picture.

It's really easy to get evidence of these things. People can log onto Centrelink and download a statement directly (I believe).

You can also get their rent paid directly by Centrelink, the property managers should be able to sort this out.
 
Someone spending 40% of income on accommodation if they earn $500/wk (ie $200/wkrent) is more difficult than someone earning $2000/wk paying $800/wk rent.

Just a matter of proportions.

No doubt, but with a child wouldn't they be receiving government assistance to make things slightly easier? I don't know but isn't child support something like 27% of the other parents income?
 
I lost them. They negotiated with their current landlord a drop in rent. Oh well you win some, you lose some. Hopefully someone will sign up soon.
 
This has disaster written all over it, not because of the % spent on rent but because a teenager and an adult are living in a studio apartment together. Will become unbearable after a few months of living in each others pocket.
 
This has disaster written all over it, not because of the % spent on rent but because a teenager and an adult are living in a studio apartment together. Will become unbearable after a few months of living in each others pocket.

Might pay to read the thread in full and pay particular attention to the post preceding yours.


pinkboy
 
This has disaster written all over it, not because of the % spent on rent but because a teenager and an adult are living in a studio apartment together. Will become unbearable after a few months of living in each others pocket.

I agree... Maybe it was for the best that it didn't work out :)
 
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