How do rental landlords or coop boards consider income of a retired person?

Asked by Ava, Out of town, moving to NY Fri Jul 13, 2007

How do landlords and coop boards evaluate retirees' finances? Say that social security is the only check coming in monthly from an external source, but the person has documented financial resources from which money can be drawn at will (but no annuity that produces systematic monthly checks). Is there a way to establish equivalence between $ of resources and job income or what do they do?

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4
Paul Slaybau…, Agent, Scottsdale, AZ
Fri Jul 13, 2007
BEST ANSWER
I can't attest to a coop board, but most landlords will be happy with sufficient documented assets as opposed to job income provided that it is not offset by large amounts of debt. Things may be slightly different here in Arizona than in New York, but my landlords never really care where the money comes from as long as there is a demonstrable ability to make the payments. They will review credit, bank financials and previous rental history to verify ability and willingness to make payments promptly.
Web Reference:  http://www.RayandPaul.com
0 votes
Mitchell Hall, Agent, New York, NY
Sat Jul 14, 2007
Rental buildings in NYC usually require an annual income of 40-45 x the monthly rent. For a $2500/month apartment the annual income should be $100,000. Some landlords may consider and accept documented assets instead of income. A retired person with assets but limited external income might have to pay 6 months or 1 years worth of rent up front. In a coop they might ask for a year or two's worth of maintenance in an escrow acoount.
1 vote
Jesse C. Tur…, , 94939
Fri Jan 11, 2008
This person may want to consider re-investing the finacial resources if possible to a higher yielding account that would be able to throw off a little bit of annuity income. There are a lot of alternative investments out there right now that are relatively safe and very lucrative. They should check with a well respected CFP for a better use of existing funds on hand.
Web Reference:  http://www.guardhill.com
0 votes
Joseph Ferra…, , New York County, NY
Mon Dec 3, 2007
It will be difficult (not impossible) for retireees to purchase in a co-op for the reasons stated by Mitchell, . Landlords are more flexible but still may be reluctant to rent without sufficient security or guarantee of payment by a third party.
Ways to deal with this are with a letter of credit in the name of the landlord or , in the case of the co-op board, with a third party guarantee and/or prepayment of maintenance charges. I know of a case where the child bought for the retired parent.
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