Navigating the Manhattan Rental Market
Renting an apartment in Manhattan is a unique process unlike anywhere else in the world. It is important that one be familiar with Manhattan rental requirements prior to beginning one's search, as this will ensure a positive experience from beginning to end. This guide outlines the steps you should take and things you should know when searching for an apartment.
1. Rental Requirements
As a general rule of thumb, landlords require that rental applicants have an annual salary equal to or higher than 40 times the monthly rent. For example, if the monthly rent is $1000, than one's salary must be at least $40,000. If you plan on sharing an apartment with roommates, then your combined income must be at least 40 times the rent.
If you are a working professional that does not meet this income requirement, or are a student that that does not work at all, then you must provide a guarantor to co-sign the lease with you. Your guarantor must have an annual salary that is at least 80 times the monthly rent. If necessary, you may use more than one guarantor, but again, their combined income must be 80 times the rent or higher. Guarantors can be family, friends, or colleagues; there are no restrictions as long as they meet the income requirements, and reside within the United States (Manhattan landlords will not accept guarantors that reside internationally.)
It is also very important that all rental applicants and guarantors have good credit. If you do not have good credit, please disclose this information to your broker so that he/she may find the best solution to fit your needs.
2. Paperwork
When filling out a rental application there are several documents that you, and any guarantors involved, will need to provide. While the required paperwork varies depending on the landlord, below is a list of commonly required documents:
-Photocopy of driver's license or passport
-Letter of employment (salary and length of employment)
-Letter from accountant (if self-employed)
-Letter of reference from current landlord (rent paid and length of occupancy)
-First 2 pages of tax return and/or w-2's
-Last two months bank statements
While it's understood that students or recent graduates sometimes lack various items listed above, guarantors must provide all of the documents required by the individual landlord. We suggest you organize all of your paperwork in a folder and bring it with you anytime you view an apartment. The Manhattan rental market moves very quickly, and you don't want to risk losing an apartment you love to someone else, just because you're paperwork wasn't available.
3. Deposits & Fees
There are many deposits and fees you should be aware of when applying for an apartment. The "good faith deposit" and "processing fees" are due when the application package is submitted. Once approved for an apartment, the first month's rent, security deposit, and broker's fee are due at lease signing. While the deposits and fees will vary depending on the landlord, below is a general idea of what your start-up costs might include:
-Good faith deposit ($300 - $500)
-Processing fees ($50 - $100)
-First month's rent
-Security Deposit (equal to 1 month's rent)
-Brokers fee (typically 15% of annual rent)
It is recommended that you have all necessary funds easily accessible.
4. Application Process
The application process involves submitting your application package for review by the landlord. The landlord will check your credit and look carefully at your paperwork. You will then receive notice of whether or not you've been approved. This process normally takes about two business days. After you have been approved, a lease signing will be scheduled, at which time you will receive the keys and can move-in.
5. Be Prepared
It can take some time to find an apartment, so you should begin searching 3-4 weeks in advance of your desired move-in date. Make a list of what you're looking for in an apartment and rank these criteria in order of importance. This is extremely useful, as it will help communicate your needs and desires to your broker. A few essential questions to ask yourself are:
- What can I afford to pay in rent each month?
- What size apartment do I need? Will I have roommates?
- When do I need to move by?
- Will I need a guarantor?
- What is my #1 priority - space, light, location?
- Where will I be working? From which neighborhood will be the easiest and fastest commute?
- Do I need a pet friendly building?
- What type of building amenities are important to me?
6. Never Forget
The search for an apartment can be very exciting, and a lot of fun! If you have any questions, please let us know...we at Barak Realty look forward to seeing you home.
Comments(0)