Gross Pay Must Equal 3 Times the Monthly Rent

By
Real Estate Agent with David Tracy Real Estate #555994

Gross Pay Must Equal 3 Times

the Monthly Rent

Early Morning Coffee Thoughts 

 

 

In the past it was easier to lease a home. A client would complete and submit an application. A credit check would be processed and if approved the client would be offered a lease contract to lease the home.

 

These days it is not so easy. You must now pass the Criminal check and Gross Pay hurtle.

 

I can understand why a home owner would not want a person with a criminal back ground living in their home especially if they went to prison.

 

However, I wonder about someone who may have been charged with an offense years ago and done a little county time or was granted probation. 

 

Lets say said person had a ding back in 1999 and nothing since. Has gotten his life back together, married and has children and a job. Should he be allowed to lease a home? How long must a person like this wait to be recognized that he has paid his dues and is now flying the course in the right manner?

 

Question number 2.

 

When did a person wanting to lease a home have to gross three times the monthly rental rate in order to lease a home begin? I can see the need in this. If the person doesn't make enough money to feed his family or pay utilities he should make more so as not to default in lease payments.

 

I recently started (once more) working the rental market. It certainly is a lot more more work, time and effort. Some of the issues are rental companies. Know that there are some great ones out there and then there are the ones that never call you or acknowledge you. It is so hard to work with those. Maybe these type of rental companies are trying to squeeze out agents somehow? Probably not, maybe they are burned out.

 

In any case I am rethinking working the rental part of the housing market.

 

What say you?

 

 

Posted by

 

Sussie Says…

Representing Buyers and Sellers in Friendswood, Clear Lake, Pearland, Webster, City of League City, and the Houston / Bay Area.

Call Me  Your Realtor at ...713-822-1655.

Website: http://www.sussiesuttonrealtor.com/

Email Me: sussiesutton@yahoo.com

 

 

 

DTRE2

  

                                          

 

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Comments (17)

Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

I don't know about Texas, but here those are simply guidelines. The important thing to remember is to treat everyone equally, and apply the same standards--whatever they might be to you--to all.

Jul 17, 2015 12:44 AM
Nicole Doty - Gilbert Real Estate Expert
Zion Realty - Gilbert, AZ
Broker/Owner of Zion Realty ZionRealtyAZ.com

I work rentals for very close family and friends and referrals of close family and friends. Rentals are a pain and they don't pay well at all but they are a decent source of contacts you can market to in the future since they may eventually be buyers. 

Jul 17, 2015 03:36 AM
Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

I don't specialize in rentals, but I do them when my clients need to rent, or to list a rental property.  We run all kinds of background checks.

Jul 17, 2015 05:57 AM
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

I know our property manager gets worked to death renting out homes and apartments. I guess working with perspective tenants would be a bit easier. 

Jul 17, 2015 10:13 AM
Sussie Sutton
David Tracy Real Estate - Houston, TX
David Tracy Real Estate for Buyers & Sellers

Lottie Kendall well I don't do leases often and as far back as I can remember it did not use to be that way.  So I am thinking that those guidelines were always there; but not really used.

You can say that again Nicole Doty - Gilbert Real Estate Expert ! Future housing buyer leads is the only reason I reconsidered doing them. Most of the people I found leases for are actually going to buy a home.

Jul 18, 2015 01:49 AM
Sussie Sutton
David Tracy Real Estate - Houston, TX
David Tracy Real Estate for Buyers & Sellers

Chris Ann Cleland yeah... I am afraid what bad apples do has lead up to all the back ground checks.

Debbie Laity almost all apartments will not work with agents in our area. The amount of work that goes into a rental is crazy. 

Jul 18, 2015 01:53 AM
Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

Just like how our contracts change year after year based on some lawsuit that happened.  It's all CYA.

Jul 18, 2015 04:36 AM
Alan Kirkpatrick
Austin Texas Homes - Round Rock, TX
Alan in Austin

Sussie Sutton 

This post is spot on. it is so much more challenging to help people lesase. I sometimes wonder if I would quilify. 

Jul 18, 2015 06:17 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Sussie Sutton, You hit the nail on the head on this blog.  Hope you have a great weekend.

Jul 18, 2015 09:17 AM
Robert Vegas Bob Swetz
Las Vegas, NV

Hello Sussie ... VB totally agrees and your post has been featured to the group:

Jul 18, 2015 10:59 AM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

it is difficult to find rental properties for clients these days.

Jul 18, 2015 09:15 PM
Sussie Sutton
David Tracy Real Estate - Houston, TX
David Tracy Real Estate for Buyers & Sellers

Chris Ann Cleland you got that comment right! It is almost like Face Book with its ever-changing ways to operate!

Alan Kirkpatrick Yes you are right! Depending on our "Gross Pay" we may not make it!!!

Hey Will Hamm !  How are you??? Yes I made myself an awesome weekend. I hope you did too and there is still time to do so if you didn't!

 

Jul 19, 2015 08:55 AM
Sussie Sutton
David Tracy Real Estate - Houston, TX
David Tracy Real Estate for Buyers & Sellers

Thanks Robert (Vegas Bob) Swetz ! I have so been enjoying your pictures of Alaska that my husband and I are now talking about taking a trip up there maybe next year. The new question is should we do a cruise or land?  I say land. I think there will be so much more to see.

Jul 19, 2015 08:57 AM
Robert Vegas Bob Swetz
Las Vegas, NV

Well Sussie ... VB would be the person to ask because I have traveled there over 5 times in the last 6 months.

I would say "Land" and book your flight in advance because air tickets are high around June & July.

Once your down there, rent a car, go on 1 day boat cruises in Seward or Homer. Everywhere in Alaska is beautiful and there is so much more to see and do on land.

Keep in touch with me because I may be living in Alaska in 2016 ;o)

Jul 19, 2015 11:50 AM
Alan Kirkpatrick
Austin Texas Homes - Round Rock, TX
Alan in Austin

Sussie Sutton 

Forget to mention I liked the blog title and the coffee latte with Donald. lol

Jul 20, 2015 08:16 AM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

It is tougher in my area to rent than to buy. Add the pet issue and the fact that they do rental history backgrounds that many of the mortgage companies no longer do and the tenants have a hard time meeting the criteria. As a landlord we are more lax and it usually works out for us and we are not burned.

Jul 20, 2015 10:26 PM
Jerry Newman
Brown Realty, 210-789-4216,www.JeremiahNewman.com - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Yes, Sussie, it's tougher to rent now than it is to buy. I had one property manager tell me they wanted a 700 credit score, and I told them with that kind of score I could sell them a house. BTW, I just had a couple get turned down for that 3 times the rent income. They were common law, and not legally married, so they were processed as separate roommates, and they did have that amount separately.

Jul 23, 2015 07:23 AM