General Landlording & Rental Properties
Market News & Data
General Info
Real Estate Strategies
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/hospitable-deef083b895516ce26951b0ca48cf8f170861d742d4a4cb6cf5d19396b5eaac6.png)
Landlording & Rental Properties
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/hemlane-a9392011949df124ea8ee63be2fb270c9423d6cd446ec67af23c96616e618606.png)
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
![Joseph Mceneaney's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/536679/1621484034-avatar-josephm92.jpg?twic=v1/output=image/crop=341x341@381x166/cover=128x128&v=2)
First last and security deposit
I'm finding a lot of people can't come up with three months deposit; plus I'm wondering if they have a good background check; verify job;no evictions; or criminal background; is it OK only to charge first and last month and maybe 2 to 2.5 income to rent ratio
after studying Brandon's book I can't seem to find those types of tenants that are described in his book
1ST Three times the income to monthly rent
2ND three months down deposit $
that's the question that I'm fine it hard to find a tenants
![Roy N.'s profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/139931/1621418971-avatar-nattydread.jpg?twic=v1/output=image/cover=128x128&v=2)
What are the regulatory limits in your jurisdiction?
Here we are allowed only to collect a security deposit which may not exceed one month's rent. In other locations you are permitted to collect last month's rent, but no security deposit, etc.
![Kim Meredith Hampton's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/226373/1685794363-avatar-kimhampton.jpg?twic=v1/output=image/crop=2316x2316@0x385/cover=128x128&v=2)
@Joseph Mceneaney in my market, I collect first months rent and a security deposit. I only collect first, last & security if I feel there is some sort of deficit, etc.,,,
-
Broker FL (#BK0601196)
- 407-448-6679
- http://www.HamptonandHampton.com
- [email protected]
- Podcast Guest on Show The Key to Scoring Discounted Deals in One of America’s Hottest Markets
![Hemlane logo](https://bpimg.biggerpockets.com/no_overlay/uploads/forum_ads/logo/953/1723657385-forum-ad-logo.jpg?twic=v1/output=image/contain=96x96)
![Joseph Mceneaney's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/536679/1621484034-avatar-josephm92.jpg?twic=v1/output=image/crop=341x341@381x166/cover=128x128&v=2)
We are allowed to get first last and security deposit
but my question is I'm finding people don't have that much money on hand; second they don't make three times the rent verified income I'm seeing 2 to 2.5 the rent ratio
![Roy N.'s profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/139931/1621418971-avatar-nattydread.jpg?twic=v1/output=image/cover=128x128&v=2)
At that point, look for stability and {reasonable} financial intelligence.
We have accepted tenants who do not {quite} meet our normal income threshold, but only when they have a history of stabile income, reasonable debt and, perhaps, a little rainy-day fund.
![Janett Lewis's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/565570/1621492731-avatar-janettstl.jpg?twic=v1/output=image/crop=3000x3000@0x646/cover=128x128&v=2)
I am lucky to get 2 times rent as income in my area. The law will only let us collect 2 months rent as a deposit (3 months if furnished). I have 6 rentals and I have never encountered so many interesting people. If I find someone with a credit score over 525 I consider myself lucky. I wish I had seen "The truth about buying $30,000 rentals" before I got so many. You have to really screen the heck out of anyone and make sure any adults are on the lease and screened and do a background/ credit check. When you call references be sure to look the person up online and verify who they are. I don't know how many times I get a hunch I'm talking to the best friend who is vouching for my potential tenant. When a tenant moves out I am find myself investing another $5000 to clean, paint and fix whatever got broke.
I also studied the book and have never bumped into this unicorn tenant in St. Louis. San Diego was a totally different story. Unfortunately I couldn't afford to by a rental property there for 1/2 a million dollars so I cherry picked applicants for my favorite buyers and sellers. I could believe the 805 and higher scores renters have out there but there is a ton of military. I ask for a holding deposit of 2 months when someone wants the home. This becomes their security deposit once all the conditions are met and they move into the home. The more I screen, inquire and due diligence the better my tenants seem to be!
![Zach Scheer's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/412402/1626812509-avatar-zachs7.jpg?twic=v1/output=image/crop=409x409@37x0/cover=128x128&v=2)
We ask that their gross pay is 2.5 times the rent and get pay stubs to prove that. We will then take the first months rent and the security deposit.
I don't know that many people that can come up with three months of rent at one time. I would be accepted under the 2.5 rule but deff can't come up with three months rent especially if I was in a current rental.
![Cody L.'s profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/128824/1621418221-avatar-codyl.jpg?twic=v1/output=image/cover=128x128&v=2)
What's this "we are allowed" stuff. The security deposit amount should be up to two people and two people only: property owner and renter.
A property owner would love to charge $100000. The renter would love to pay $0. Between them some agreement is made.
I wish the fat pig government would leave free people be.
![Paul Ronto's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/749471/1621496627-avatar-paulr90.jpg?twic=v1/output=image/cover=128x128&v=2)
The key to finding good tenants is great marketing. The better you market your property the bigger pool of applicants you'll have to choose from. Be sure you are syndicating your listings to all the online listing channels, posting to Craig's, Facebook and other social channels. Also be sure to publish your acceptance criteria in your listing information to weed people that won't meet your requirements right off the bat, saving you time and money.
Also be sure when you screen, that you are taking your time to pull real screening reports, including credit, criminal and eviction. Finding the right tenants is tough but when you get them, they make your life way easier as a landlord.
If you are having trouble with the 3x issue, lower your criteria to 2.5 or 2x but post that and you need to stay consistent with all applicants. If you reject someone for not having 3x income, but accept another renter with only 2.5x you could be opening yourself us to a FHA lawsuit.
Also like other's have said, the 3x rule is generally gross income, and is the sum of people on the lease, so if there are two adults on the lease their sum income needs to be 3x the rent, they don't both need to make 3x the rent.
Good luck, let us know if you have other questions, we're always happy to help!