What to Look for with Income and Assets on a Rental Property

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When looking for a tenant for your rental property, choosing someone who will be reliable is essential. The last thing you want to do is find a tenant and expect a steady rental income just to have them delay or skip out on payments.

We follow specific guidelines to guarantee a successful working relationship between tenant and landlord. When you have a trusted tenant living in your rental property, all worries can disappear as you collect the monthly checks.

Income and Assets for Potential Tenants

As we take in applicants for rental properties, we make sure they qualify. You can count on our vetting process to get you a dream tenant.

Here are some qualifications they must reach:

  • Monthly Income: We require 2.5 times the monthly rental amount in gross income from the tenant. This is based on the amount they make before taxes. Non-cash assets and court order payments are not included in that amount.
  • Savings: We also require three months of reserves. This means they must have 3x the monthly rent, car payments, and expenses in their bank account before renting with us. This is because several things can come up that would push tenants into hardship, such as a lay-off, seasonal work fluctuations, or an illness. When they have this safeguard, it protects the owner of the property.

When choosing a tenant, you must be firm on income and asset rules to avoid violating fair housing laws. Discrimination against tenants is not something we practice. We look at all tenants equally and require them to follow the same qualifications before renting one of our properties.

Find a Trusted Property Management Company

Most rental properties are investments that work as a second income for many of our homeowners. However, you want the best bang for your buck, so hiring a property management company will be in your favor.

Talk to our team at Properties Direct if you are looking for a tenant in Temecula. My name is Cale Thomas, and I can advise you on finding a reliable and long-term tenant. Send me a text, email, or call at (951) 473-0390 or [email protected].