Minimum income to cover £1000 rent pcm

PasturesNew

One salary of £36k is takehome of just over £2200
Two salaries totalling £36k is takehome of £2400

kmmr

£1400-1500 per month sounds like a lot to live on... but I know how London just chews up money. They will be walking distance to work which will save money, but I don't really want to be the evil landlord forcing them to not go out anywhere!

Anyway, thanks for the opinions. I think I will find out the post studying plans, and details of any savings. With a mind to say no - but they may convince me.

anotherginger

i think people are going way over the top in how much money they need!

around 32k seems right. if they want it that much they will cut back on other things.

kmmr

UnemployedAndLovingIt wrote: »

I would strongly advise you asking them personal details about their savings and future career plans though as if any landlord started asking me personal questions like that id just be very creeped out and not want to rent from them, as itd be an intrusion of my privacy.

Its upto them to pay the rent from whatever source they get income, whether it be 1job, 4jobs, benefits, crime money.. lol
As long as you get paid the money each month the amount that they have left after is only their business and no1 elses.

I do agree with you about not being too intrusive, but it is sort of my business. I treat being a landlord as a business, and all I am trying to do is work out how likely it is that my income will come in.

Part of me is doing it to save them from themselves though! One tenant ran out of money, and he was so stressed and got himself into a terrible situation to keep up the rent. I would love to say 'cool, just relax and pay what you can', but life isn't like that!

kmmr

I doubt they would able to claim LHA. One is from overseas, and the other a student. But, incidentally I checked the rates for Tower Hamlets.

http://www.towerhamlets.gov.uk/lgsl/1101-1150/1147_local_housing_allowance.aspx

Now you may laugh at this naive question... but is that rate for a 1 bed place per week or per month??

BitterAndTwisted

Those LHA rates are per week. I'd like to see any shared accommodation which costs £102 per month. Or rather, I really, really wouldn't.

kmmr

good point. Even in tower hamlets £100 won't get you far!

Doshwaster

My agent has the policy that you must earn a gross annual salary of at least 30 times the monthly rent.

So, £1000 pcm = £30,000 salary

However, in my opinion, that is a huge drain on your income - once you add in Council Tax and other monthly bills, especially if you are trying to save for a mortgage deposit at the same time and occasionally have a life. On a £30k salary, I'd be more comfortable with a £600-700 rent, but everyone is different and there are parts of the country where £700 won't get you a portaloo.

adg1

We rent very comfortably paying just under what OP is asking and earn about 2500K after tax between us. That covers private nursery fees, food for 3 people, 2 cars, council tax in the most expensive borough in the world, bills, internet/telly package, mobiles, landline phone etc etc.

These people may have very few outgoings other than rent/council tax and bills per month or they may have huuuuuuge debts, earn a good whack but lose it all in repayments. If its the former then they could make great tenants, the latter would make them look less careful with money and hence a bad bet.

How much rent are they paying on their current property if they are renting? If its similar and there has been no lateness/arrears they are probably a good bet. Try to get hold of their last 6 months of bank statements and scrutinise income they have and tot it up to see what it amounts to.

chewmylegoff

whenever i've been credit checked by a letting agency it's always been "gross income must be at least 2.5x rent". this is the same rule as the annual salary must be 30 times the monthly rent (2.5 x 12 months = 30) quoted above.