Understand if a landlord can use a rent-to-income ratio

Some landlords might tell you they won’t rent to you at all, or they will only rent to you with a guarantor, if the rent would be more than a certain percentage of your income.

For example, they might say the rent can’t be more than 30% of your income. So if the rent is $900, they won’t rent to you if your income is less than $3,000 per month ($36,000 per year).

This often called a rent-to-income ratio.

It could be if a landlord won’t rent to you or demands a guarantor, just because of a rent-to-income ratio. A landlord is allowed to take your income into account but they must also look at other information that could show whether you will be a reliable tenant.

For example, a good reference from a previous landlord or a good rental payment history could show that you can afford the rent even if your rent-to-income ratio would be higher than the landlord thinks is acceptable.

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