Click on a subject area below to read more about NYC rentals.
NYC Rentals, Condominiums and Cooperatives: What’s the difference?
Rentals: The landlord owns the entire NYC building. Stabilized and non-stabilized apartments are included in this category.
What you need to know: The approval process for NYC rentals are relatively short, taking approximately seven days. It is based upon a credit check and financial requirements. Usually the tenant is expected to have a net income of 40 to 52 times the monthly rent. The security deposit is usually equal to one month’s rent for NYC rentals.
Condos: The apartments in the building are owned by individuals for residential and/or investment purposes. Owners are able to determine rent and length of leases for NYC rentals that are condominiums.
What you need to know: The approval process can take up to 30 days and is based on a credit check and the individual owner’s requirements. Application and move-in fees are common. Usually the tenant is expected to have a net income of 40 to 52 times the monthly rent. The security deposit for your NYC apartment may exceed one month’s rent.
Co-ops: The building is structured like a corporation. Individuals do not own an NYC apartment but shares of the building according to the size and value of their unit.
What you need to know: There are many restrictions on the rentals of co-ops including rent price, length of lease, roommates, etc. The approval process can take up to 45 days. Prospective tenants must submit extensive personal and financial information as well as interview with the co-op board. Usually the tenant is expected to have a net income of 40 to 52 times the monthly rent. One can also expect sizable application and move-in fees. The security deposit may exceed one month’s rent. Also, applying to a co-op can be problematic for diplomats or new hires without an established credit history.
Frequently Asked Questions:
How much rent can I afford?
As a guideline in NYC, you can expect to spend approximately 25% of your gross annual income on rent. For example, if you earn $80,000 per year, plan to spend $2,000 a month on rent.
What do landlords commonly require?
Most landlords require their tenants to be of good credit and gross an annual income of 40 to 50 times the monthly rent.
What is a Guarantor?
A guarantor, also called a co-signor, is someone who is willing to guarantee your lease. The guarantor is responsible for all terms of your lease and your rent payment, should you default.
Do I need a Guarantor?
If you do not meet the financial or credit requirements, a guarantor is one way for you to secure an apartment. Most students and young individuals require a guarantor due to their inability to meet income requirements.
When it is an issue of bad credit, however, a guarantor in conjunction with extra security might be needed. Please let your agent know if you will need a guarantor so he/she can better prepare your application.
Who can be a Guarantor?
A guarantor does not have to be a relative, but many landlords require the guarantor to live in the tri-state area: New York, New Jersey or Connecticut. Try to prepare your potential guarantor in advance. Speak with them about what they would be responsible and the paperwork that would be required of them. Timelines for apartment applications are subject to change. As a result, you might have to act quickly and the guarantor’s cooperation may be critical for your approval.
So what does a guarantor need to do? A guarantor needs to fill out an application form and provide the same required documents as the applicant. In terms of income, they are required to gross an annual income of 80 to 100 times the monthly rent of the apartment. The guarantor does not have to be present at the lease signing unless otherwise stated by the management company.
Required Documents:
Metropolitan Property Group or Management Company application
The first step that will start the process once an apartment is found is filling out an application form.
Application fee(s)
When prospective tenants fill out an application for an apartment, they are required to leave a small security deposit (refundable). The amount of the deposit varies, depending on management company.
Letter of employment
The letter must be on official company letterhead and state your position, length of employment or start date, and your annual income. It also needs to be signed by a person authorized to verify the information provided. Please note that a signed offer and/or acceptance letter are usually not accepted.
Photo identification (state license preferred)
Many landlords require a copy of a photo ID at the time of application.
Credit check
Credit reports are run on every applicant and guarantor. The prices of credit reports range from $25 to $100 (non-refundable), depending on the management company. Unfortunately, credit reports obtained on your own are not accepted.
A major part of the approval process is based on your credit report. So what constitutes bad credit? A high revolving balance, past due payments, delinquencies, collections and a public record are all considered red flags to management companies. But, a landlord-tenant record showing past disputes is the worst!
If you think your credit is not good, it probably isn’t. Telling your agent in advance will allow him/her to prepare alternate solutions. While some landlords will allow an applicant with bad credit to increase the security deposit and/or use a guarantor, others may reject the application completely. Our agents will guide you in a way that will save you time, money and a lot of frustration.
Tax return (first 2 pages must be signed)
Some management companies require a copy of your most recent federal tax return. A tax return is usually required when a person is self-employed or if you are basing your income on several different sources.
W-2 form
Pay stub (most recent)
A copy of three consecutive pay stubs.
Bank statements (most recent)
Three recent statements from your checking account, savings account or any financial institution with which you do business.
Fully executed lease
Other Documents (not required in all cases):
Landlord letter:
A reference letter from your recent landlord can always help in the application process. The best letters are those that state the applicant’s length of residency and whether he/she has paid rent in a timely fashion. If you are unable to get a letter, have the name, address and phone numbers of your landlord ready.
Bank account numbers:
These are often required on application forms, so have them ready just in case.
References:
Ideal references are people whom you have known for more than one year or those who have a professional role in your life (i.e. accountant, attorney). Compile a list of potential references and their information (name, address, phone number) and have it ready just in case.
