How Important Are Tenant Financials?
Just how important are tenant financials during the qualification process… very! First and foremost, you must ensure that a tenant has the financial wherewithal to be able to make regular rent payments. As discussed in previous Management Mondays, we recommend a gross monthly income multiplier of 3x the rent, though that can slide to 2.5 to 3.5 depending on the amount of debt.
However, beyond just looking at the numbers, you must ensure that the documentation (paystub, bank statement, etc.,) is legit. We have seen an uptick in inauthentic proof of income in recent years. Applicants may be merely inflating their income to market themselves better. Worse, they could simply not afford the rent or be obscuring income from illegal activities. Regardless, you should do everything possible to verify the source of the income. We here at 24 Hour Property Management conduct research and call employers to verify the information submitted firsthand.
Contact 24 Hour Property Management, Inc.
If you any questions about 24 Hour Property Management, our services, and our vetting process, please contact us so that we can answer your questions and advise you. You can reach us seven days a week at 949-409-8585 or you can check us out on the web at 24hourpm.com.