Debt limit on Screening Criteria?

[Rachel H.]

Hi Seattle landlords. Does anyone list particular debt limits (like, "no debt in excess of $1000 that isn't in a payment plan") as part of their screening criteria? I'm wondering what is both legal and advisable in this regard. Also curious if people are still listing a lower limit for credit score and whether that is legal and advisable as well. Thanks for your help, everyone! 

[Kevin Sobilo]

@Rachel H., why re-invent the wheel?!? I just looked to how underwriting is done with mortgage qualifications.

Front end ratio, and back end ratio.

For the front end ratio I use: Gross Monthly Income >= 3 x Rent

For the back end ratio I use:  Rent + Monthly Debt Payments <= 45% x Gross Monthly Income

In this way, debt is considered in a consistent way in determining if the applicant can afford the rental.