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Updated over 5 years ago,
Tenant screening: Debt-to-Income or Rent-to-Income?
It seems like it's most common to use a 33% rent-to-income ratio to screen tenants, but debt-to-income seems like a smarter way to screen tenants to me. A tenant may have a good RTI, while having a poor DTI. Isn't it smarter to use DTI?
What debt-to-income ratio should be used? I expect it can be a little higher than the typical 33% debt to income ratio. What is everybody using?