Rental Market Information
THE RENTAL PROCESS
New York City's rental market is different from most other cities. The information in this section will help you become acquainted with the rental process and what you can do before you arrive to make your search for an apartment as easy as possible.
A. Assess your needs by speaking to a counselor or answering the following questions:
1. Rent: How much can you afford to pay each month?
2. Location: Where would you prefer to live? (Options will vary according to budget)
3. Size of Apartment: Do you want a place just for yourself or will you be living with family/roommates?
4. Pets: If you have a pet, your apartment choices will be limited.
5. Move-in date: Start your search approximately three weeks in advance.
B. You will need the following documentation before you start your search so that you're ready to apply for your selected apartment. Please note that if you are a student or have insufficient income to meet the financial requirements for renting described below, this documentation will need to be provided by a guarantor rather than you.
1. Letter of employment and salary verification
2. Pay stubs
3. Tax returns
4. Bank statements
5. Name, address, phone number of previous landlords
6. Names, addresses and phone numbers of personal and business references
7. Photo identification (driver's license, passport)
C. Prepare the necessary funds for renting an apartment in New York. Landlords will not accept personal checks. They require certified funds. Bring enough traveler's checks to convert into certified checks to cover the cost of two months' rent (first month's rent and security deposit) and any brokerage fees (up to 15% of one year's rent) which are due at lease signing. You will also need funds to cover an application/credit check fees ($65-100).
D. Now you're ready to search for an apartment. Once you've found an apartment you like, you will be asked to fill out a rental application, submit documentation and pay application/credit check fees. Where the application process cannot be avoided, the specific requirements of each landlord may vary as it is not regulated by the state/local government.
Upon approval, you will be asked to sign a lease with the landlord and pay your first month's rent and security deposit and any other applicable fees. You can then make arrangements for a move-in date with your landlord or building superintendent.
FINANCIAL REQUIREMENTS FOR RENTING IN NY
Most landlords require that your annual income be between 40 to 50 times the monthly rent. For example, if the monthly rent were $3000 per month, you would need to show income of at least $120,000 per year.
If you do not meet this requirement, you may be able to qualify to rent if you can provide: 1) income from other sources, such as roommates or 2) a guarantor. A guarantor is usually a parent, relative or friend who will agree to pay the landlord in the event you fail to make any payments under the lease.
Landlords may accept roommates' combined incomes to determine financial qualification for an apartment. If the rent is $2500, the landlord would typically want to see a total income of $100,000. If both roommates earn at least $50,000 annually, they could "combine" their incomes in order to qualify for the apartment. If this is not permitted, you will be asked to provide a guarantor or lease co-signer, a person who accepts financial liability in the event you or your roommate fails to pay the rent.
Landlords require that guarantors earn between 75 to 100 times the monthly rent in annual income. This means that for a $3000 apartment, a guarantor must show income of at least $225,000. Most landlords require that the guarantor live in the tri-state area (New York, New Jersey or Connecticut) and will ask for the same documentation listed above.
TIMING
On average, apartments are available to view by prospective tenants thirty days prior to the expiration of the current tenant's lease. Except to become familiar with the market, there is no reason to start your search more than three to four weeks before your desired move-in date.
PETS
If you plan on keeping a pet in your apartment, your housing options will be limited. The majority of Manhattan landlords do not allow dogs and if they do you may be limited to only one. There also may be restrictions on the weight (no more than 20 pounds) and the breed and temperament of the dog.
Photo courtesy of Morningside-Heights.net
Aerial View of Morningside Heights