Have you had viewings like this?
You try to be incredibly selective in who you offer viewings to.
But in fact you’re too selective.
Because the people that turn up have plenty of options, plenty of money, and wouldn’t pick your property anyway!
And so belatedly you realise you need to lower your sights to actually secure new tenants.
Whenever we had T who can easily afford much better property, we simply told them so - to make sure they realise what they’re doing and to avoid wasting everybody’s time. However, some T want to save money to get on the property ladder later on. We have one T like this - very high earner and very stingy. We’re dreading the time when we’ll be raising the rent. Prior to that, he lived in a shared accommodation.
I certainly had lots of people stating their actual income was way in excess of what would be needed to rent the property and who would normally live in posher areas, I exclude those people as they are obviously a waste of time as either (i) liars or (ii) would fall into your description.
Hi Graham, as a prospective tenant I was wondering what salary amount is too high for you? I’ve seen 3x yearly rent as a recommendation but for me that seems way too high. It would be about 47% of our take-home pay. We are aiming for about 36% of our take home pay which would make our salary 4x the rent.
The 3 x rent is normally expressed as multiple of your net income, so rent would be circa 33% of your take home pay. Some will use 2.5 times rent (40% of take home) so some landlords would consider you but some wont. Generally higher earners can use lower multiples as less of there other income is being used on essentials.
I’ve always been told when looking to rent that we’d need an annual gross salary of 30 times the monthly rent. Now that I’m a landlord, I’ve got that as a minimum.
I had people saying income was 7-10x rent. I ask them as they are so rich, why they want to live in a cheap flat. No answer. For me, monthly rent 40% of income is believable. It could be higher in some circumstances, E.g. students
I’m saving for a deposit for a house so looking for something cheap
Not necessarily correct. I’ve had applicants who wanted my property as a pied-a-terre as their business requires them to be away from home during the week.
Want to save for a house deposit, or a hundred and one other reasons for wanting to save money.
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