Whats the highest % of income you accepted ?

Discussion in 'Property Management' started by Alex P Keaton, 14th Jun, 2015.

  1. Alex P Keaton

    Alex P Keaton Member

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    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?
     
    Last edited: 14th Jun, 2015
  2. sanj

    sanj Member

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    I'm confused, is it a mum and daughter pr husband too?
     
  3. Peter_Tersteeg

    Peter_Tersteeg Finance broker/strategist

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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?
     
  4. hugh72

    hugh72 Member

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    It sounds okay, remember there probably will be child support, family tax benefits etc etc so you might not known the full picture.
     
  5. Jamie_

    Jamie_ #1 Procrastinator

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    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
     
  6. Alex P Keaton

    Alex P Keaton Member

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    Mum and daughter. Husband left
     
  7. Alex P Keaton

    Alex P Keaton Member

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    Oh haha must've been autocorrect. :D

    Yep separated & yep she not he
     
  8. Alex P Keaton

    Alex P Keaton Member

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    Yeah

    ------
     
  9. Alex P Keaton

    Alex P Keaton Member

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    Yeah that's true! :)
     
  10. Scott No Mates

    Scott No Mates ...and people wonder why?

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    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.
     
  11. Kinnon Bell

    Kinnon Bell Member

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    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....
     
  12. Peter_Tersteeg

    Peter_Tersteeg Finance broker/strategist

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    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.
     
  13. hugh72

    hugh72 Member

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    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?
     
  14. letiha

    letiha Member

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    Lol 27% :D:D:D
     
  15. hugh72

    hugh72 Member

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    Please enlighten me, I thought it could of even been higher but its got to be declared income.?
     
  16. Alex P Keaton

    Alex P Keaton Member

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    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.
     
  17. jackbak

    jackbak Member

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    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.
     
  18. pinkboy

    pinkboy SS Lookerafterer

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


    pinkboy
     
  19. Alex P Keaton

    Alex P Keaton Member

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

    jackbak Member

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    Good luck, hope you get someone in quickly!