Apartments for Rent New York City | Rent NY Apartments | No Fee Apts

1. Do I need a broker to rent in New York City?

This is the million-dollar question! The simple answer is “no,” you don’t need a broker to rent in NYC. But it is helpful to have one. Most management companies and landlords do not make vacancy listings available to the general public, but rather only to brokers. Why? Because for these companies it is easier to let a middleman (or woman) handle the work of actually leasing an apartment to someone else. The management company/ landlord does not have to show the place; the broker does it. The management company/ landlord does not have to fill out the paperwork for credit checks and leasing; the broker does it. However, there is a new shift of management companies/ landlords who make their vacancies available to the general public, and these limited listings do make it possible, to rent an apartment in NYC without a broker.

2. So is it better to go through a broker or to do it on your own?

Most of my peers came to this city swearing they would never use a broker to rent an apartment. I swore that I would not use a broker. However, most of those peers (and I) gave in after a short period and hired one. Why? A few years ago there weren't any "NO-FEE" sites to make appointments on your own. And the truth is, brokers have hundreds of listings that you do not have access to, they get the keys to the units more readily than you do and they help you get all of the paperwork together faster than you would on your own. In short, they cut down on time and effort for everyone involved. So, is it better to go on your own these days? That is up to you. With sources such as HowToRentInNYC.com and management company's going online you do have the abilitiy to do so. If you have the time and energy I would suggest trying it on your own and seeing if you can find what you want is realistic. As you know, brokers will always be there to help...
Brokers will show you apartments you could have gotten on your own...READ HERE why this is "shady" or not.

3. What’s a normal commission rate for a New York City rental broker?

The commission is the money that the broker earns for successfully renting you someone else’s apartment. You do not pay for them to show you apartments or for getting your paperwork together. You only pay if you rent and sign a lease for an apartment through them. That commission, or fee, has fluctuated over the last several years due to several factors: a drop in rent after the tragedy of 9/11/2001, an influx of people into the city to take advantage of a favorable housing market, and a decrease in rental properties due to this influx. Rates have shot-up from 8-10% just six years ago to around 14-18% in 2006. Why the increase? Again, there are more people competing for fewer listings. The market controls the rate. As a rule, expect to pay about 15% in commissions. “Fifteen percent of what?” you ask. Fifteen percent of your first year’s rent. For example, let’s say that your rent each month is $2,000. That means that you pay $24,000 for your apartment over the course of an entire year. Fifteen percent of $24,000, ( that is, 24,000 x .15,) equals $3,600.

4. Can I get around paying the broker’s commission if I sign one of those “fee agreements” at the brokerage companies?

The legal answer is NO! The Fee Agreement is designed to protect the broker from you going behind their back and renting the apartment without them. You signed your name to a contract stating that you will not rent this apartment with another broker or try to contact the management company directly for at least 180 days (the average fee agreement length of time). Make sure the broker gives you a copy of your fee agreement after they are done taking you to apartments. This way you have the list of apartments at your disposal, and that way, when you talk to the next broker, you can tell them what you have all ready seen and it doesn’t waste your time or theirs. If a broker finds out that you rented the apartment without their knowledge, and that broker works for a bigger company such as Citi-habitats, Corcoran, or Best Apartments, then be aware that they do have the time and the resources to come after you. You’ll definitely wind-up paying the fee, and if the case makes it to court, well…it could get worse. It isn’t worth the anxiety, well for most anyway.

5. I have seen “no fee” broker services in the classified ads. What’s the deal?

You can use a broker and pay no fee. This is of course, is rare now, especially in such a competitive market. So how does it work? When brokers list an apartment under the “no fee” section this means that the management company/owner pays the broker the fee, and you don’t. So, why are these management companies being so generous? They’re not. Afterall, this is about business. There is always going to be a benefit to the management company/ owner.
_{1. The location that you are renting may be in an undesirable neighborhood, and the management company is paying the fee as an incentive to get you into the area.

2. The company has increased your rent an extra $200 per month to cover the broker fee’s cost. In short, you could be paying $2,000 a month for a “no fee” apartment that a “for commission” brokerage rents for $1,800. Still, the company may give you the no fee option to create “word of mouth” on a new development or property. By putting you in an apartment with a good deal, they send you out to create a buzz on the place.}

6. How do I find an apartment in the city without a broker?

If you have the time and energy, then YES, you can find an apartment in NYC without a broker.

_{1. NO FEE WEBSITES}_T_{here are many NO FEE websites for management companies where you can see their listings. These sites explain their rental process and usually allow you to make an appointment to view the units directly. Fortunately for you HowToRentInNYC.com has the largest NO FEE MANAGEMENT COMPANIES and WEBSITES on the web. There are also “search engine” websites such as Craigslist.com and Backpages.com that offer good leads, however, when browsing on any of these, look for “owner” listings and not those of a broker. Brokers use these sites to generate business, and again, you’re trying to avoid that fee.}_{2. WALK AROUND THE AREA YOU WANT TO LIVE IN}_{Another idea is to walk around the area you want to live in. Look inside buildings for the management company’s phone number. Call the company directly, but make certain that you are prepared to hear the words, “We only talk directly with brokers.” Nevertheless, be positive and persistent because inevitably some companies will deal directly with you, even if they don’t list.}_{3. CALL ALL YOUR CONTACTS}_{Make certain to contact anyone and everyone you know who lives in the city. There is always someone trying to find a roommate or to sublet an apartment. This means no fee to you.}_{4. RANDOM ROOMATES, MOST PEOPLE ARE NORMAL}_{Building off number 3, check out craigslist.com, backpages.com and other sites to find people you DON’T know who are looking for roommates. It is a scary thought living with someone you don’t know anything about, but this is becoming the norm in NYC due to high prices and low inventory. TIP- it is ok to ask the potential roommate about their history and referrals for them.}_{5. DOORMEN ARE YOU FRIENDS!}_{Finally, remember to talk to NYC’s most knowledgeable people: building doormen. Most of the doormen are aware of the availabilities in the building that they work at, and sometimes they can put you in direct contact with the Management Company or owner of a particular. Be polite, kind, and gracious when you approach, because if things go well, you’ll be seeing a lot of your new doorman (doorwoman.)}
7. So how much does an apartment cost???

It’s New York. The answer is, “A lot!” It all depends on the location, the amenities, and the condition of the building. Amenities may include doorman, laundry, elevator, dishwasher, luxury style, gym, and dry cleaning in the building. Neighborhood preferences change, and what’s hot today in NYC may be out of vogue tomorrow. Keep in mind that when many people think of NYC, they immediately think of Manhattan (even though this is only part of the place.) So, the breakdown for Manhattan goes something like this: the most affordable areas in Manhattan are the Upper East Side, Midtown West, Hells Kitchen, Lower East Side and the Financial District. Anything in the East or West Village, Union Square, or Chelsea area will be significantly more expensive. I can’t be specific on what area is charging what because it also depends on the management company/owner. I worked as a real estate broker during 2006, and these were the average prices:

_{Studio- $1500-2500.00

One bedrooms- $2200-3500

Convertible 2 bedroom (one bedroom with a wall division)- $2600-4000

Convertible 3 bedroom (two bedroom with a wall division)- $3500-6000

REAL (no conversion necessary) Two bedrooms- $3700-5000

REAL (no conversion necessary) Three bedrooms –$ 3800- 7500}

Please note that the lower end of the price for each type of apartment could mean that it’s not in as trendy of a location, it has less amenities, no doorman, no laundry, is not close to a subway, etc. The higher the end of price range for each apartment could mean a trendier location, more amenities, a doorman, laundry, it’s close to a subway, has an elevator etc. If you want to know what a specific apartment would cost with specific amenities please submit your question ABOVE, and I will respond within 24 hours on this page.

8. What is a “convertible 2 bedroom”?

In Manhattan space is very limited. A real two-bedroom apartment is an apartment with two bedrooms, a kitchen and a separate living space. A convertible 2 bedroom is a one-bedroom apartment that has potential. It has space to allow you to cut the living or dining space in half with a wall to make a second bedroom. A “real” two bedroom apartment (which, as noted by the word “real,” actually has two bedrooms) can run over $4,000, while a convertible 2 bedroom in the same building, all things being equal, would probably then be priced around $3,000. Most of the people I know who live in Manhattan live in convertible 2 bedrooms, 3 bedrooms, or 4 bedrooms. This is pretty much the norm. With that said, building “walls” is a huge business in New York. You can either “rent” a wall for the year from a “wall building company” (I am not kidding,) which on average is about $1,100-1,500. Or you can pay someone to build a wall for around the same price. However, most management companies are locked into one “Wall Building Company” and you will have no choice but to use that one. I’m certain that your mouth has dropped open. Get used to this kind of thing. It’s New York.

9. How do you build a wall in an apartment?

You can build a wall by either hiring a private contractor or calling a "wall-building company." These walls cost anywhere from $700 (private contractor) to $1500 (company). Usually management companies have agreements with certain "wall- building companies" and you have to use who they recommend. The "wall building" companies tend to build only pressurized walls which are easy to take down. You technically "rent" these walls for the duration of your lease and if you leave the company will come and knock them down regardless if the next tenant wants to keep that wall up. Because it is "rented" they can do this thus making the next tenant pay the same hefty fee you did the year before. It is a growing monopoly and in my opinion not fair of the management company to make you use their "recommended" companies.

10. Are rents going to go down anytime soon?

Rents often fluctuate with the sales market and interest rates. Typically in Manhattan where inventory is always limited, rents consistently increase every year. However, right now rents have dropped 10-15% for the first time since 2001 and vacancy rates are on the rise. The one small silver lining of what has been going on economically can mean better rental deals for you.

11. Do I need a roommate?

If you are making over $80,000 per year, then you could afford NYC rent without a roommate. If you are like the rest of us who spend every dime we have the moment that it comes in and make less than $80,000 annually, then YES, you will need a roommate in Manhattan. An average sized studio in Manhattan (300-400 square feet) in an elevator building costs around $2,000 per month. A convertible 2-bedroom in Manhattan in an elevator building is around $3,000. The difference between living by yourself and living with someone averages about $500 per month in additional costs. Add that to your share of utilities and it adds-up fast. Plus share of costs for utilities and other bills. Again, where you live will determine your rent, but you can be certain that sharing living costs with someone in any neighborhood will lesson your financial burden.

12. Should I just live in Brooklyn, the Bronx, Hoboken, Jersey City or Queens?

There is a huge migration of young people moving to Brooklyn or Queens: a new generation of “hipsters” who refuse to pay outrageous rents and would rather spend the extra time commuting than blow money on a tiny cube of a place. This is a personal choice. With that said, I know many people in their 20’s and 30’s who live in all of these areas and swear by them. BUT, because Manhattan is becoming so expensive, the apartments in the boroughs have now become higher in rent as well. Neighborhoods in Brooklyn (such as Park Slope, Williamsburg, and Cobble Hill) are just as expensive as Manhattan was 2 years ago. But they are still less expensive than current prices, and you tend to get more space for the dollar. If you work in any of these areas, it might be smart to avoid both the commute and higher rents, and spend your extra money cabbing into the city on the weekends for your dose of NYC.

OR like my friends you can be the Anti-Manhattanite in Brooklyn because you are above all the commercialism and consumerism and the best restaurants and bars are in Brooklyn... bla bla bla.

ALSO Broker fees are non-existent or lower than if you were renting in Manhattan...it is that whole supply/demand thing.

13. What does “rent control” and “rent stable” mean?

Due to housing shortages during World War II, NYC (and other urban areas across the United States) instituted rules to keep rents in check. They didn’t want to see rents shoot up in urban areas with a drastic influx of people. A residential building that was constructed in NYC prior to February of 1947 is under rent control, meaning that the owner is allowed to charge a rent based upon “reasonable” operating costs plus a “reasonable” profit. Rent control also restricts the rights of an owner to evict a renter. Rent stabilization is basically a continuation of this program, and it too limits eviction except for circumstances allowed by law. Price control is the obvious benefit of rent control and rent stabilization. Some make the argument that rent control only dampens the housing market by providing little incentive for new buildings to be built. It is a political argument over whether or not it is good or bad to have rent control. Debate the merits of the issue on your own. This site is devoted to giving you a basic understanding of what rent control is so that you know what you are getting into when you rent in a rent controlled building. Just the facts.

If you want more info check out:

http://www.dhcr.state.ny.us/ora/progs/oraprogs.htm#howrs

http://www.housingnyc.com/html/resources/dhcr/dhcr1.html

14. I keep hearing the words “condo” and “co-op” what’s the difference?

A CONDO is ownership of real property where apartments are individually owned but the common elements of a building are shared. (IE, hallways, laundry room, roof deck etc..) You obtain ownership to your apartment with a deed, which is recorded with a city or a county clerk.
A CO-OP also known as a Housing Co-operative is a corporation that owns your building. People who own in a “Co-op” are called SHAREHOLDERS, same as shareholders of stock in a publicly traded corporation. Each shareholder owns a specific amount of shares that correlates to their apartment. Everyone who owns shares in the
Co-op are subject to an occupancy agreement which is known as a Proprietary Lease. Owners also own the common elements of the building.

Both CONDOs and CO-OPs have boards that you, the perspective tenant; have to go through in order to rent in their building which brings us to the next question,

15. I know what a CONDO and CO-OP are, but what does that mean if I want to rent in one?

Both condos and co-ops have BOARDS that you have to go through in order for you the tenant to be approved to live there much like being approved by a management company only more difficult. You will have to submit a BOARD PACKAGE. This tends to be way more invasive then renting in a Management Company owned building. This may not seem much different than what I tell you in Question 16 but getting this together times 5-10 board members (depends on how many board members there are, is more difficult)

_{This typically includes:} _{1. First months rent, last months rent (CERTIFIED FUNDS UPFRONT...they are returned to you if you are turned down)

    2. Signed Leases (this includes guarantor signatures)

    3. Employment Letter - stating your length of employment and salary, can be a CPA letter instead if you own your own company

    3. Taxes for the last two years

    4. Signed “CO-OP/CONDO” rules

    5. 2 pay stubs

    6. ALL paperwork you need for NYC (IE, lead paint clause, window guards)

    7. Recommendations (2 personal, 2 business)

    8. Clear photo ID

    9. Bank statements

    ****10. Application fee and other board fees. This could range anywhere from $150- 1000.00 up front. It depends if the owner will cover the additional yearly fees or not.}_{MOST OF THE TIME THEY DO except for the application      fee. Application fees range $100-400 on average.}

CONDOS are much, much easier to rent in. The BOARD is much more informal and they won’t want nearly as much information as a CO-OP board. This is because the owner is really the one who is responsible for paying their mortgage and taxes, so if you default it is on him or her. A CO-OP board is much more strict because if the owner defaults because you the tenant hasn’t paid them, the entire CO-OP is held responsible.

99% of the time you are renting through a broker if you are trying to rent in a CONDO or CO-OP. Individual owners have a hard time getting together what you need to present to their BOARD so they usually enlist a broker to do it for them.

16. The biggest difference in renting in a co-op vs condo/management company is the THE BOARD INTERVIEW

You will likely have to go through a board interview to live in the CO-OP and never in a CONDO. The owner is allowed to only submit one applicant per month to the board meeting. If you aren’t approved then that owner loses out on rent until they can submit a new applicant for the next month. This means the owners can be tough on you in terms of wanting information.

If the owner picks you as their applicant you will have a scheduled appointment where you will meet with the board (the board typically meets only once a month) to see if they approve you to rent in their building. Boards vary tremendously with how strict they are. You can be very well be qualified to rent this apartment but if they don’t approve you, and they are allowed to disapprove of anyone they want, there is absolutely nothing you can do. They are like the border patrol to their mini country, and you are trying to gain citizenship. I wouldn’t overly stress about the actual questions they ask you in the meeting. Boards are set in their criteria and you will either meet it or you won’t. If you would like to have some idea of what they could ask you, here are sample questions:

_{QUESTIONS THEY CAN ASK:}_{Do you have a significant other?

If you do have a significant other how often do they spend the night?

Is there a chance they will move in with you?

How long have you been employed?

Do you plan on staying at your position?

How long have you lived in the city?

If you are in school, what are you in school for? ...

What do you want to do after you get out of school?

Are you close with your guarantor?}

After waiting for three weeks without looking at other apartments you could very well be turned down and screwed come the first of the month with no apartment to live in.

17. So, Why rent in a co-op?

PRICE!!! Anything this arduous has to have a silver lining, and in this case, that lining is a significantly cheaper price—no doubt a price cheaper than the rest of the apartments in Manhattan. I live in a co-op. I live in a doorman building, with laundry, 2 blocks from the subway in a trendy area in a big one-bedroom apartment for $2100 a month. The building across the street, owned by a management company, rents a one bedroom that goes for $3200 per month. That is a HUGE, HUGE price difference, even if you pay a 15% broker fee and an additional few hundred up front for board fees.
Of course, nothing in life is free. I had to fight tooth and nail for the owner to pick me, and then I still had to face the board. I was fortunate in that my board was not all that strict. At the time I was a graduate student with loans and no real income other than my guarantor. But because I had a solid guarantor, I was approved. Again, there are exceptions to the rule: this was one of them. Often times, boards will not take you if you do not qualify on your own. So, in exchange for a crunch on my personal time and some loss of pride, I was granted a cool apartment at a great price.

18. How do I search for a condo or co-op rental?

Like I said earlier, most of these types of rentals are exclusively through brokers. For this reason brokers list the addresses to these units publicly on their brokerage website. To find them, go to the SEARCH RENTALS feature on any brokerage website, and you will be able to tell if a listing is to that brokerage or if it is a general rental that they are advertising. The broker will typically tell you if the listing is a condo or a co-op, even if there is no address listed.

19. What do I need to rent an apartment?
(Paperwork and Monies you need before you start your search)

Listed below are all the documents and monies you should have together before your search. Please note that for the money you will need these funds upfront and readily accessible in certified funds. MEANING: You can’t write over a check. You will have to go to your bank and get a certified check or you will have to wire the money directly into the account in order to take the apartment off the market.

Common situation: You have all of your paperwork together but you have to wait 2 days for your dad to send you a certified check for the first months rent and security deposit. BAM... another person comes in the next day before your check arrives and they take it off the market. I can’t say it enough, have your money accessible the day you start searching. If you bring the check to the management company/landlord before you get your paperwork together they will wait for the paperwork to come in, but will not wait for your money!

PAPERWORK YOU NEED BEFORE YOU START YOUR SEARCH
Disclaimer- Every management company/landlord will want different paperwork but these are a rule of thumb things to have. Could be more could be less

Guarantor Paperwork -
* If you need a guarantor, they will need to have this as well as you, BUT the management company will be far more strict with your guarantors paperwork then yours since they are responsible for you paying.

1. Tax Return (usually only the first two pages from last year, or the last two years)
2. Employment Letter stating length of employment and annual salary (or a CPA letter if you own your own company)
3. Pay stubs (typically 1-2)
4. Bank Statements (typically 1-2)
5. Clear photo of your picture ID

Your Paperwork ( with or without a guarantor- Read #20 to see if you need a guarantor)

1. Tax Return (usually only the first two pages from last year)
2. Employment Letter stating length of employment and annual salary- If you are a new hire/student, your guarantor info will cover this
3. Pay stubs (typically 1-2) - If you are a new hire/student, your guarantors info will cover this
4. Bank Statement (typically 2)
5. Recommendation from your last landlord (not common, most will take your landlord’s phone number and check that way)
6. Clear photo copy of your student ID
7. If you are a recent graduate they might want proof- a copy of your student ID or an unofficial transcript
8. If you are a student or recent graduate bring a recent transcript or your student ID as proof that you were a student. They will take unofficial transcripts as well. (This isn’t common, but could make your approval process go faster)

ADDITIONAL PAPEREWORK YOU WILL GET FROM MANAGEMENT COMPANY
9. Application- Condo/Co-op/Management Company will give you the one they want you to fill out when it is ready, you can’t have this pre-search!
10. Credit Check- this is usually on the Management Companies Application (cost $30- 150.00 depending on the company)

*** If you are renting in a CO-OP or CONDO they will want all of the above information and then some. Rents are typically cheaper in these situations because you have to go through such an arduous process. For renting in a CO-OP CONDO- please look at question 17 & 18!

Money

You will need to have together before you start your search
You will need at least the first months rent, one months rent security deposit and your broker fee (in case you end up needing one) ready to go in your bank account. So for your $2000.00 studio you will need:

1 months rent- $2000
1 month security deposit- $ 2000
(if you use one) Brokers fee 15% of annual years rent- $3600
TOTAL: $4000 (without broker) $7600.00 (with broker)

***Sometimes management companies might want one-month rent, one-month security AND last months rent. So if you want to err on the side of caution add one more month rent for a total of:

$6000 (without broker) $9600 (with broker)

Unbelievable right! How are you supposed to come up with $6,000-10,000 on your own before you come to the city? There is no easy answer. As I mentioned earlier if you had a roommate sharing the costs of the broker and therefore also a lower rent you would have to come up with a lot less. The reality is, living in Manhattan or a popular area outside Manhattan will be costly.

20. What is a guarantor, and do I need one?

A guarantor is someone who is legally responsible for your payment of rent if you default on your rent payment. Most management companies or individual owners want your guarantor to be related to you, usually in the immediate family, so that in the event of a default, they will more easily be able to collect. There are always exceptions. Your guarantor will be subject to the intense scrutiny of any rental applicant, and will be required to be on the lease. They will need the same paperwork as you would listed above in question 17. Please keep in mind they will need an additional credit check and application fee for your guarantor.

Reasons you need a Guarantor:
1. Poor credit
2. Low income, annually making less than 40 times your monthly rent,
3. New Hire- You could make $500,000 a year but if you have been working at your position under 1 year or 6 months they consider you still a risk and would want a guarantor.
4. Student ( you make no money, you need a guarantor)

Things you should know about guarantors:
1. Your guarantor should make a salary that is more than 80 times your monthly rent.
2. Some management companies will only take in-state guarantors (someone from New York) or tri-state guarantors. (New York, New Jersey, Connecticut) Why? Because out of state guarantor’s can be difficult and costly to collect from should you default on your rent. Inquire with the particular company or landlord for specifics.
3. As much as management companies say they will only take in-state or tri-state guarantors, most will bend the rules and take an out of state guarantor as long as they qualify financially.

21. New Option If You Do Not Have A Guarantor! INSURENT

In market rate apartments, you may be required to put up significant amounts of security (3 – 11 months rather than the typical one month security) to rent the apartment. A new program – The Insurent Lease Guaranty Program - was recently launched which can act as an institutional guarantor for your apartment lease. This Program is already accepted by major landlords in the NYC metropolitan market. Assuming you have good credit and your annual compensation is a minimum of 27.5 times the monthly rent (substantially lower than the 40-50 times of the monthly rent often required by landlords), the Insurent Program (www.insurent.com) can pre-qualify you in less than 2 hours after filling out the interactive application. After validation of your employment and payment of the guaranty fee which represents a small percentage of the annual rent (approximately 66-78% of one month’s rent), the landlord will receive an Insurent Guaranty for your one year lease. Even if you have an individual co-signer/guarantor for your lease many parents who could financially qualify as guarantors may opt to utilize the Insurent Program and pay the guaranty fee for their son or daughter to avoid subjecting themselves to the burdensome, time-consuming and invasive process of providing 3 years of tax returns, net worth statements, brokerage reports and bank statements required by landlords.

22. What is a sublet? Is it the same as an assignment?

A possible opportunity, that’s what a sublet is. But, technically speaking, a sublet is when you lease an apartment from someone else who is already leasing it. Simply put, you rent from another renter. Why would someone rent an apartment and then re-rent it to you? Probably because that person need to get out of the apartment, and that could be for a variety of reasons: he or she has rented a bigger or a nicer place, the person bought a home, he or she is moving out of town, etc. In these instances, you might be able to negotiate a significantly lower rent with the individual, because that person most likely needs to move, and like you, he or she most likely can’t, or at the very least, doesn’t want to, pay two rents. So, if that person can recoup a portion of the rent (or all of it), that would be a great deal for all involved. The desperation of another person translates to significant savings for you.

When subletting, be certain of two things. The first is that the person subletting the apartment has the authority to do so. Ask for a copy of the original lease and read it carefully. Look for any provisions that could prevent you from being allowed to sublet. Generally, there will be clearly defined clauses that state “no subletting.” Second, decide whether or not a sublet is what you want. You must be aware that when the original lease is terminated, so are all of your rights as a sublet. For this reason, you might want to consider an assignment. An assignment is the act of taking over another person’s lease. In this instance, you garner all of the same rights and responsibilities of that tenant, including all of his or her renewal rights, if any exist. You end-up paying the full rent for the place, but you also get direct access to the management company. When you sublet, the original renter, in fact, becomes your landlord, and any problems that you have with the place have to first go through that person and then to the management company. With an assignment, you skip the middle part. This direct access can save a lot of time in an emergency such as an overflowing toilet or a broken heating unit.

23. Why you should know your credit score before you start looking! (if you end up having bad credit that is)

Credit history is a big big big big big big big deal to rent in this city. If you have BAD credit and do not have a qualified guarantor you are in for a great deal of barriers in trying to rent an apartment. Checking your credit months in advance of moving to New York City is important to see if there are any errors or claims. If you see an error on your credit report call the credit bureau and get it expunged before you ever come to the city. This will make your life much easier. It might not be your fault; credit card companies make mistakes all the time.

Here are the bad credit history scenarios played out and what you can do about it:

1. If you have bad credit and don’t qualify on your own BUT you have an excellent in-state guarantor who meets the income requirements
If this is the case, a good amount of management companies will rent to you because your guarantor is the one who is legally responsible for you paying. They still might want an extra month, or months rent upfront to cover their own behind. If they don’t want to rent to you see answer to #2 below

2. If you have bad credit BUT you do qualify financially to rent an apartment on your own there are management companies who are much more lenient.
Companies that I know are more lenient are

A. Jackobson Properties
B. Croman Realty
C. PAN AM- the best apartments out of the bunch who will take bad credit BUT you do have to work with a broker to have access to them.

These are the ones I know from working with them personally, ask your broker for others. TELL your broker about your credit issues so they can help you.

3. If you have bad credit and you do not have a guarantor and you do not qualify on your own -NOT ALL HOPE IS LOST!

A. Look for a roommate who all ready has an established lease, they are less picky they will doubtfully run a credit check on you and if they do they will like you and your winning personality enough to just either let it slide or pay an extra months up front. Then you just move right in on a sublease agreement.
B. If you have the money to put 6 months or a year up front. However, the management company can still reject this.
C. Find anyone who will be your guarantor. It doesn’t have to be a close family member, though most management companies prefer it. Some management companies will take a family friend, or distant relative if they are in-state.

24. Leases

Halstead does a wonderful job of explaining the different types of leases are and what that means for you. Check it out here:
http://www.halstead.com/resources_renters.aspx
My only comment is that most of the landlords I worked with used the Lease Agreement (Blumberg Form A55). It is easy clear and covers what is necessary for both landlord and tenant. If you or the landlord feel there should be additions made it is ok to write these in a separate document called a "rider" to the lease.

YOUR QUESTIONS ANSWERED!
The questions you submit directly to us will be answered below

25. You asked "Why do I have to pay more on a co-broke, what exactly is that?"

A co-broke means that two different brokerage companies are splitting the fee (normally 50-50) you pay to rent that apartment. Typically one brokerage company has an exclusive on that property and then another brokerage company brings you the client to view that property. Even though your broker brought you to the apartment, the other broker gets half of the fee since they are the one showing the apartment. (Exclusive = an apartment can only be shown through one broker or brokerage company b/c that owner signed a contract with them) This means there are no reducing the fees because two companies are all ready splitting it. So your broker in theory only gets 25% of your fee that you paid. 50% goes to the other brokerage company and half of your brokers fee goes to the house, which in this case is their brokerage company.

You can look for an apartment as early as you want and sign a lease to that available apartment as early as you want. BUT (you knew there was going to be one) landlords tend to release their listings between 1-8 weeks before the move in date. This is for several reasons. Most people don’t let their landlords know they are moving out until they are sure they have a new place secured or they are also making a last minute decision. This means landlords can’t release listings until they know they are going to be 100% vacant. Some tenants let their landlords know months in advance, as I am sure you are aware that doesn’t happen to often, but it happens sometimes. This means if you are looking to rent an apartment in August there will be a very small selection of apartments available for August 1 move in released in April. If it is very important that you are secured in April...probably because you are going home for the summer here is what you can do.

THINGS TO DO NOW

- First, starting today look at HowToRentInNYC.com’s list of No-Fee websites. Check every single one for listings. (these listings should have move-in dates next to them) Do this at least once a week, don’t be shy checking every few days. Apartments, particularly three-bedrooms go quickly because they are in higher demand due to lack of inventory. If you see one pop up call the management company or email them to set up an appt quickly. What you can be doing right now is getting all of your paperwork together. I assume you have guarantors and three students so that is a lot of stuff to get together. (look at my other questions to get this info) If something comes on the market and it is great than the first group of people who have all their stuff together- wins!

- Second, call brokers. They will have access to listings that you do not have. Be in touch with two different brokers from two different companies. Don’t be in touch with more than that because it will stress you out and really most companies do have access to similar inventory. Tell them your situation and exactly what you are looking for. They work for you and they will call you as soon as they have something that comes up that matches your move in dates and descriptions.

- Third- Make sure you and your roommates are on the same page with what you want. I had many 3 bedroom people looking together and then they each liked and disliked different properites. This will cost you time and you can lose out. Start checking out apartments now together, even if it is for an April 1 move in so all of that can be squared away now. Obviously you can't take those apartments but then when you really start looking you know what all of you will want. This is the best piece of advice from me to you...trust me on this.

- Fourth- Look at July 1 move-ins as well. I know this isn’t ideal because you would have to pay an extra months rent but sometimes move-in dates are negotiable. So if it is a July 1 move in and the landlord likes you and you have all your monies and everything together for him than you can try to negotiate a July 15th move in. This means you end paying only 2 extra weeks of rent and dividing that three ways since you are in a 3 bedroom is not terrible. Really you are paying for peace of mind. I did have one client negotiate the move in by 4 weeks, this is rare but it happens.

-If nothing comes up between the mgmt companies and your brokers- not all hope is lost. You schedule a trip back to the city at the end of June or first week of July. Come back to the city for 3 days. I suggest coming in on a Tuesday. New listings are released on Mondays and take a day or two to get into the system at brokerages. From home speak with two different brokers and tell them exactly what you want to look at and that you do not have time to be swayed in different directions. Schedule two appointments with them BUT first look at all the NO-FEE websites that are available on HowToRentInNYC.com. Check through all of their listings daily to see what comes available and schedule appointments with them first and then go meet with the brokers. Do not be nervous to wait till June for an August 1 move in. If you lived in the city year round and wanted an August 1 move in, I would tell you to not bother looking until end of June anyway. That is when all the tenants have to let their landlords know that they are moving out. (Sometimes tenants don’t even let their landlords know until a week before)

27. You asked "How much does rent increase ever year?"

If the apartment is not "rent controlled" or "rent stabalized" the landlord is allowed to increase rent as much as he/she wants from year to year, obviously within reason to keep you there or to get someone to rent an apartment. The landlords goal is to keep you staying in their unit so most raise the rent somewhere in between 5-10% per year. ($2000 apartment rent increase of $100-200) If you decide it is to much of an increase and you move out that means the landlord will lose out on at least 2 weeks to as many weeks as it takes to get a new qualified tenant in. In a co-op situation the landlord might raise the rent anywhere from 0-5% because they really do not want to go through the process of finding a qualified tenant that has to go through a board interview, they could lose out on 2-3 months of rent. This also depends on location and desirability of the apartment. If you are living in the West Village in a well priced apartment and the landlord knows they can get a significant amount more they will raise the rent that amount. I had a friend who lived in a $2000 studio in the West Village, they raised the rent to $2600 the next year, clearly significantly more than 10%, more about 30% increase. It happens. My suggestion is try to get locked into a two year lease if the landlord will want you. If the landlord wants a 10% increase for the second year, take it.

28. You asked "What is a floor-through apartment?"

A "floor-through" apartment typically means that the unit occupies either the entire floor or half the floor in the building. If you walk from front to back on a side of building only one apartment would be occupying it.

29. "What to do if my parents (guarantors) don't make 80 x's monthly rent? I've been sharing a two bedroom for two years,working, but have to move out because roommate is moving. Parents have great credit and can put six months rent up front. Will I qualify or be rejected automatically?"

I have received this question often. If you have been a steady working person for two years who has good credit you will still be a great candidate for most management companies. If you make 40 times your portion of the rent than you won't need a guarantor. If you do not make that much and your parents do not as well, I assure you... you will find most of the middle size and small landlords will approve you anyway. The huge corporations are a bit more difficult. For example, Archstone, RockRose and Glenwood all have luxury style, expensive units. They will most likely not talk to you unless you meet their strict criteria. Other companies such as Pan Am, Jacobson, any individual landlord, RVE Inc, and most medium firms will still at least view your application. I want to stress that all the above is if you have good credit. So the answer to your question is that, yes you will be automatically rejected by the larger firms, but if you have a steady work history and good credit you will easily find an apartment!

30. "I'm planning to move to Brooklyn or Queens after I graduate from a Master's program. I will be looking for a job in New York at that time. Will my lack of income/work history make it impossible for me to secure an apartment even if I have the money for first, last and security?"

The quick answer to this question, is yes- your lack of income/work history will make it very difficult for you to secure an apartment if you do not have a guarantor. If you had 6 months or even a year to put up (this is highly unrealistic for most people) than it could be more possible. However, landlords want to know that you are a good investment. If you have no consistent work history to speak of and also aren't making the income brackets to qualify on your own then you need to find a guarantor. I had many new wall street types making a six-figure base as clients and they all needed guarantors. However, most of them wanted the shiny, doorman type building and those buildings tend to have more strict criteria. To be on the safe side I would find a guarantor to back you up, it isn't worth losing a great apartment because you haven't been working long enough. Absolute worst case scenario- you will find a smaller landlord or more "chill" landlord who will take you without the work history and income qualifications but you won't have as many options. BK and Queens are a lot more relaxed than Manhattan so there will be some.

31. I'm planning to fly up to the city from Miami in order to find an apartment. How long should I plan to stay?

If you are coming in to the city for a brief amount of time I suggest coming for at least three business days of the work week. Weekends are tough, access is limited, all of the mgmt companies are closed so you aren't positive of status. I showed many apts on sat when I was a broker but it was hit or miss to find out information on that Monday. It could have all ready been gone because someone submitted an application on Friday. If you have to come on a weekend make sure you are here through that Wednesday. Set up appointments with two brokers from two different companies on one day. If both come up short and don't have anything that you like you can quickly make a new appointment or check out new listings that evening for the next day. Be sure to set up appts for yourself from all the no-fee websites we have in our MGMT company page. Lease signings and getting monies together can take 2 business days. MAKE sure you have all of your paperwork, your guarantors paperwork (if necessary) and all of your monies accessible in a bank that is here in NYC.

32. You asked "What happens when you don't pay rent?"

I will check with my resident attorney on this one. Other than eviction and being sued I am not completely sure of the process. Check back in a few days for a more clear answer.

33. You asked "Can I rent an apartment with bad credit?"

Please check back to the answer for # 22.

You are 100% correct that June/July are the most competitive months for renting an apartment. There are some things to consider in terms of value. The summer has the most turnover in apartments compared to the rest of the year. This means if you want options the best time to look is the summer because the vacancy rate is highest then. BUT Landlords do jack up prices and brokers raise prices. If you look in the fall-spring there is significantly less inventory but probably better prices. But if you are looking to at least have a few options and not get stuck with the one or two than the summer is probably best for you. I know this sounds vague. My personal opinion is September/October is probably the best time of the year to look. Other people will disagree with me on this. I think this is because all the masses have settled but apts that did not get rented in August or people who tell their landlords last minute that they are moving out Sep 1 leaves a good amount of inventory with a lot less competition. Bottom line, rent is expensive- if you can find a deal for 3-6 months with a low cost for moving and no broker than maybe it is worth it to wait till the fall but if you are paying for peace of mind I suggest only looking once a year. Moving and renting is a draining process. Hope this helps!

35. "I will be doing research in NYC for 2 months (June and July). What are my best options for renting an apartment for such a short time frame?"

The best option for short-term summer rentals is craigslist.com in the sublet/roommate section. Thousands of students are only here from Sep-May and there are many, many students who are always looking for someone to sublet to just for the summer. If you are of a certain age and don't want to bunk up with a 20-26 year old, there are many students who have studios in prime areas and charge significantly cheaper than their rent just to get some money back on it for the summer. Any other time of the year is more difficult for short-term renting but the summer is actually quite easy and you have a large pick!

36. I will be a student when I move to NYC, I don't have tax returns. What now

Most people moving to NYC from June-August are students or have just graduated and find themselves in this position. You will need a guarantor. Without a working history or tax returns from a previous year a landlord will not take you. They simply want to know how you will pay for it. A guarantor can be anyone of close relation and some landlords will let you use a family friend. Please see more about guarantors in question #20.

37. What does it mean to sign with a managment company rather than with the landlord directly? Are they one in the same?

They are one in the same. Most people refer to an individual owner or an owner of only a few properties as a landlord, but it is synonymous with management companies. Management companies are larger corporations that can own only a few units but typically own one or many buildings.

38. Do many landlords or managment companies allow tenants to negotiate terms during lease signing?

This is a good question with no easy answer. It really depends on the landlord and the time of the year. You will have more flexibility with the smaller landlords, big management companies typically will never negotiate because of that whole supply and demand thing! Smaller landlords during the off season months can be negotiated especially if you are a great applicant. If however, you have slightly off credit and no guarantors, don't expect them to do you any favors.

This is a great question because I received it often when I worked as a broker. Unfortunately, the social security number will have to be exposed because all companies/landlords will run a credit check on you. As for bank statements you do have the right to black out the account #'s. There could be a few management companies that would like to have access to it all, but I never encountered one personally. I know you feel extremely vulnerable exposing every financial detail about yourself but that is the nature of the beast in NYC. I have had many a guarantor scream at the paperwork involved but there isn't a way around exposing your social security number. Even the "shadiest" brokers in the company I worked for never ripped off someone's social security number- but use your best judgment with who you work with..

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