Single Family Homes with Multipe Families

With the market change it is clear that that we have priced the market of rental customers almost out of the market!  It now takes three incomes to cover most rental prices.  Homeowners willing to accept additional immediate family members like Mom, Dad, brother or sister also living with the family unit are more likely to obtain tenants quicker. The largest customer base of people renting are adults between the ages of 23 to 35 years old, in most metro areas their typical yearly income is $30K to $40K.  Best practice is their rent should not be more than half of their income, similar to the FHA rule of purchasing.  An income average of $35K is a monthly income of $2,914 which means a single person would only be able to afford rent of $1,450.00 a month and a married couple $2,900.00.   Keep in mind that we are also seeing two vehicle loans with payment of $500 to $700 a month, student loans with monthly payments of $300 to $500 and mandatory insurance payments totaling $500 to $800.  Young adults that appreciate and respect their credit score know the cost of living has out priced income.  We are experiencing 70% of applications for rental homes requesting to share the home with three income producing adults.  Property management companies have made lease changes to accommodate this need to share due to vacancy rates being on the rise.   We want the young adults that appreciate and respect their credit, right?  Investment home owners need to start considering if they want higher rents does the location of the home support single family income, if not, does their property management company have leases and processes in screening and on going management that protects their investment for a shared scenario. Most investment home owners want the higher rent they see other people asking on prominent rental sites and will need to loosen the reigns on occupancy.