Income requirements are often 3-4x the actual rent, so if someone has a good financial grip (no debt, no car) as many in NYC do, they may be able to afford it but not technically qualify. This is a sure fire way to become house poor but if you’re smart about it you can make it happen
Remember that renting can be financially better, depending on circumstances.
Purchasing also throws some money away, interest, insurance, maintenance (which is more than people think), and actual purchase and sale fees to banks and realtors.
Often the recommendation is to only buy if you really think you’ll be in that house for at least 10 years, can put 20% down… and some other things I can’t recall of the top of my head.
They ask for the stupidest things. They want 3x rent up front for first, last, security. They want you to have a full year of rent in your savings. Until laws were passed, a person in my town would have to drop $9000 on DAY 1 to rent a 2bd, 2bathroom.
It’s been 2-3 years since I rented. I signed my last lease right before the pandemic started, but rented a lot before that… too much.
I haven’t run into anything that crazy. One place told me I had to pay for a year of parking up front instead of monthly, but that wasn’t required to rent there, only if I wanted to keep a car in nearby structure.
Once when I was signing a lease the other person at the leasing office was told to pay 2-3x rent for a security deposit, while they only asked me for $200. I don’t know what was behind that, but I’m going to assume it was credit score or something. Asking for first and last months rent up front seemed pretty standard.
Most of the things you mention are about having a lot of cash on hand, and less about how much money is coming in each month to pay rent, which I thought was what the girl was faking, which would make her rent-poor, spending 70% of her paycheck on rent or something.
Perhaps you’ve never rented before. Affording and “not qualifying” are very different things. Sometimes you make far more than enough money to rent but maybe you work in the wrong industry.
I spent at least 16 years renting and rented at least 10 different apartments.
I’ve never run into anything that crazy. There was one place I tried to rent, but it was designated for low income. When they told me the income limit and I knew the rent, it didn’t seem to add up. There was no way I would have paid the rent they were asking for making even the high end of the income limit that was set.
If she can’t afford the rent, photoshop isn’t going to help on the first of every month when rent is due.
Income requirements are often 3-4x the actual rent, so if someone has a good financial grip (no debt, no car) as many in NYC do, they may be able to afford it but not technically qualify. This is a sure fire way to become house poor but if you’re smart about it you can make it happen
They’re 40x the monthly rent.
If you want to rent a $2,500 apartment, you need $100k in income (gross, not net).
Yes, if you can skimp elsewhere, you can make it work with a smaller ratio. But it isn’t an insane rule of thumb for what you can afford.
They’re saying 3-4x on a monthly basis.
I’m just saying what it is, in NYC it’s 40x the monthly rent for annual gross income, 80x for guarantors.
3.3x the monthly rent. This is true pretty much everywhere in NYC.
It’s in their range but more precise, and they will care about annual income. They’ll ask to see tax returns often.
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Remember that renting can be financially better, depending on circumstances.
Purchasing also throws some money away, interest, insurance, maintenance (which is more than people think), and actual purchase and sale fees to banks and realtors.
Often the recommendation is to only buy if you really think you’ll be in that house for at least 10 years, can put 20% down… and some other things I can’t recall of the top of my head.
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Have you rented recently?
They ask for the stupidest things. They want 3x rent up front for first, last, security. They want you to have a full year of rent in your savings. Until laws were passed, a person in my town would have to drop $9000 on DAY 1 to rent a 2bd, 2bathroom.
It’s been 2-3 years since I rented. I signed my last lease right before the pandemic started, but rented a lot before that… too much.
I haven’t run into anything that crazy. One place told me I had to pay for a year of parking up front instead of monthly, but that wasn’t required to rent there, only if I wanted to keep a car in nearby structure.
Once when I was signing a lease the other person at the leasing office was told to pay 2-3x rent for a security deposit, while they only asked me for $200. I don’t know what was behind that, but I’m going to assume it was credit score or something. Asking for first and last months rent up front seemed pretty standard.
Most of the things you mention are about having a lot of cash on hand, and less about how much money is coming in each month to pay rent, which I thought was what the girl was faking, which would make her rent-poor, spending 70% of her paycheck on rent or something.
“rental down payments can’t hurt you, they aren’t real”
Perhaps you’ve never rented before. Affording and “not qualifying” are very different things. Sometimes you make far more than enough money to rent but maybe you work in the wrong industry.
I spent at least 16 years renting and rented at least 10 different apartments.
I’ve never run into anything that crazy. There was one place I tried to rent, but it was designated for low income. When they told me the income limit and I knew the rent, it didn’t seem to add up. There was no way I would have paid the rent they were asking for making even the high end of the income limit that was set.
The stupid policies will come to your town and then you’ll understand.