The Wal-Mart Client
When we talk about "The Wal-Mart Client," we are basically referring to the "Best Case Springfield, Ohio Rental Applicant."
Springfield, and sadly most of Ohio these days outside of the Columbus area, continues to struggle economically. Manufacturing jobs have virtually disappeared and high tech jobs have yet to gain any sort of foothold. Our incomes are down and unemployment is up. This means that the majority of working individuals in our market can afford around $450 a month in rent. If your cost structure allows you to charge rent in this area, you will find a broader pool of applicants from which to select your next tenant.
I call the perfect tenant the "Wal-Mart Client." A Wal-Mart first-line supervisor will make at least $8.50 an hour and work an average of 35 hours a week. This is a very stable job. Similar situations exist at fast food restaurants and large call centers of which we have several in our area.
$8.50 an hour at 35 hours a week translates to $1289 a month gross income. A good rule to live by is to only pay out about 35 percent of your monthly income in rent. So, 35 percent of $1289 is $451. Obviously, if you can afford to rent your unit for $400 vs. $500 you will have a better shot at collecting rent 10 to 12 months out of the year versus less than 10 or collecting any rent at all.
Furthermore, the more applicants you have to choose from, the better chance you will have of screening in a tenant most likely to pay the rent and maintain the property.
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