- Almost all landlords are members of the Vermont Landlords Association (VLA), which behaves like a guild/insurance company.
- The VLA has a policy-guideline: no more than 30% of a renter's income should be spent on housing (rent combined with all utilities and 'housing fees').
- Member-landlords treat this as law and ask all prospective tenants to provide proof of income.
- Acceptable documents include recent pay-stub or employer-letter.
- Landlords will refuse to lease to tenants who's income would cause the tenant to pay more than 30% on housing.
- The VLA supports its member-landlords with legal assistance and can provide monetary assistance if any tenant behavior results in a financial loss to a member-landlord.
- The VLA may refuse to assist a member-landlord if employment documents were not obtained or if those documents reflect insufficient income.
- Vermont Minimum wage (as of 1 Jan 2020) is $10.96, which computes (for a full-time employee) to about $1,900 a month before taxes.
- Assume double-occupancy (every minimum-wage worker must have a roommate in Vermont) and 1,900 x 2 = $3,800.
- 30% of $3,800 is $1,140.
- $250 monthly utilities (1 BR Apt) $60 electricity; $150 (average) heat; $40 garbage.
- $1,140 minus $250 is $890.
- $890 is the maximum rent a landlord can expect two minimum wage workers to afford.
- In and around the metro-Burlington area (where more than 50% of the state population resides), average 1BR rents are $1,300 (+/- $300) albeit many complexes offer units with all or most utilities included in the rent.
- To be permitted to afford $1,300 a month, in rent and utilities, the household must be able to prove they have an annual income of $52,000.
- Throughout the state, housing turn-over (across all levels and types) is extremely low (and not just in the winter). The reason? The minimum wage increased 18 cents per hour from last year; which is $30 a month. Nobody can move if their rent has increased more than their wages.
- There is a constant need for temporary, seasonal, minimum-wage workers (50-60% of businesses have help wanted signs). The reason? Nobody can move to a state with almost the highest rates of taxation in the country and middling wages, if there is an unregulated "informal gatekeeper" dictating: every household must have over $50K to move here.
Vermont legislature: Make it illegal for businesses and landlords to request a person's income.
other very-vermont things worth noting:
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