Rental Property Management in Charleston | How Important Are A Tenants Finances?
When screening tenants, rental property management in Charleston takes finances into consideration as one of the main qualifications for rent; however, some tenants are often frustrated with rules on their finances because it often keeps them from renting their dream home. Even if a tenant has a shining star next to all the other qualifications, rental property management in Charleston should not overlook the tenant’s ability to pay the rent.
How Much Should the Income to Rent Ratio Be For Rental Property In Charleston?
The standard qualification for income to rent ratio is that tenants should have a household gross income equal to three times the amount of rent in order to sufficiently afford the rent. Property management companies in places where the cost of living is lower can sometimes slide down to an expectation of 2.5 times the amount of rent; however rental property management in Charleston often recommends that gross income should be 3.5 times the rent because the cost of living is higher. If tenants get behind on their other bills or utilities the chance that they will pay their rent late is much greater. Property managers need to ensure that tenants can afford to live in the home, not just have the ability to pay on paper.
What is Considered Income?
If a potential tenant doesn’t meet the income requirements for a home based on their employment alone, remind them of the other possible sources of income they may be getting that they can include on their application including:
- Grants or Student Aid
- Income of other adults in the home
- Interest on accounts
- Disability payments
- Child support payments
- Social security payments
- Dividends from stocks
- Unemployment compensation
- Cash payments
Although it is not recommended, some landlords will bypass income qualifications for tenants that offer to pay the term of their lease in cash upfront as this is guaranteed payment. When this happens, you run the risk of tenants that wouldn’t usually qualify and could cause other problems later when it is lease renewal time.
If you want to work with a property manager who understands tenant screening, call Scott Properties at 843-972-9008.