How much should you pay for somewhere to live, as a percentage of your income?

Straightforward question really.

How much (as a percentage) of a household income should go on rent?

If you're single, how much a month is reasonable to you?

Landlords, how much of a households income should be paid to you?

It will be very unscientific, but I am interested to see how much a difference will be there from two groups.

justshane

I'm renting and pay approx 20% of my wage on rent.

CiniO

What do you exactly mean in landlord section?
Is it percentage of tennants household income that landlord think Tennant should pay, or is it percentage of landlord's household income that he makes on rent?

Do you mean gross or nett income values?

CiniO

As a family household (wife, me, 2 kids) we currently pay about 8.5% of our gross income on rent, so that's outside your survey options

pwurple

Net or gross?

The answer is, as little as possible!

20% of net (after tax) income is what I personally aim for.

dennyk

A common rule of thumb is that you should aim for no more than 30% of net income. Personally I'm spending about 26% of my net income now (or 23% if you count pension contributions as part of net).

Lockedout2

I don't think it's a straight forward question at all. It depends where they are in the country.

Take a married couple with two kids both earning €35,000 each income after tax is around €57,000.

They rent a three bed house for €1,000 per month so 12/57=21% of disposal income.

A single person earning €25,000 can rent a house share in the same estate for €333 per month €4K/€21.6=18.6% of disposal income.

So something around 20% would be where it's at.

Are you asking landlords morally what should a tenant pay? Not sure what you mean, the tenant should pay the market rent if the tenant earns €50k and wants to rent a house for €1,000 per month then that's their call, if they earn €100k and want to pay €1,000 that's their call.

I think that it works out between 20%-30% of disposable income.

super_sweeney

i spend about 31%(net income) personally i think this is way to much for rent but i live in Dublin city center so not many options. Looking to buy and mortgage will be about the same price as my rental. So i think personally i am happy to pay 31% for a property i own, but not for one i am renting. interesting poll though !

Mrs OBumble

I'm a landlord and a tenant, how to I answer?

As a landlord, I'd be happy to take up to 50%.

As a tenant, I'd like to pay 15%. In reality, I pay 30%, but that's for a fantastic location which means I spend almost nothing on transport and get some heating coming up from downstairs. So am better off than I would be paying 20% in a semi-d in the suburbs.

Pawwed Rig

As a LL it is none of my business how much a tenant pays. They are adults and can decide themselves. As a tenant I paid as little as I could for the property and area I liked. Never considered the % age aspect.

Inspector Coptoor

My half of the mortgage represents 26% of net income per month.

Need more increments!

davo10

As a LL I don't ask how much tenant makes, it's none of my business. I ask for first, last and deposit, if they can't afford it, then they can't afford it.

Owner occupier, mortgaged, <25% net income.