What is 'rent-to-income ratio' in Delaware residential tenant screening?
Why The standard used by property managers to evaluate whether a tenant's income is sufficient to afford the rent Is Correct
Answer B: The standard used by property managers to evaluate whether a tenant's income is sufficient to afford the rent
Exam Tip: Property Management
Property management questions cover landlord-tenant law, security deposits, and maintenance responsibilities. Know the differences between gross, net, and percentage leases.
People Also Study
Related Delaware Questions
- A mortgage 'point' equals:Finance
- A Delaware buyer's gross monthly income is $7,500. Using a 43% back-end (total debt) ratio, what is the maximum total monthly debt (including housing)?Real Estate Math
- A Delaware tenant pays $2,000/month rent. The landlord raises rent by 4%. What is the new monthly rent?Real Estate Math
- What is the debt-to-income ratio for a Delaware borrower with $1,850 housing payment, $350 car payment, $250 student loan payment, and $6,500 gross monthly income?Real Estate Math
- A Delaware apartment building has 12 units. Eight units rent for $950/month and four units rent for $1,100/month. What is the annual potential gross income (PGI)?Real Estate Math
- Redlining refers to the illegal practice of:Fair Housing
- The primary duty of a property manager to the owner is to:Property Management
- A property's land-to-building value ratio is important in the cost approach because:Property Valuation
Key Terms to Know
A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Study This Topic
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →