Property Management
What is 'rent-to-income ratio' in Delaware residential tenant screening?
AThe ratio of the property's rental income to the owner's personal income
BThe standard used by property managers to evaluate whether a tenant's income is sufficient to afford the rent — typically requiring gross monthly income of 2.5x to 3x the monthly rent✓ Correct
CA formula for calculating the maximum rent increase allowed under Delaware law
DThe ratio of rental income to property value used to assess investment performance
Explanation
Rent-to-income (or income-to-rent) ratio is a tenant screening standard. Most Delaware property managers require applicants to earn gross monthly income of 2.
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