Rental Guide

IntroductionThere’s a lot to love about New York City, from eclectic restau-rants, to lush parks, to abundant entertainment options.

With so much to do and enjoy in this city, it’s no surprise that housing is in high demand. We’ve created this rental guide so you can learn about renting in NYC and prepare to find your new home.

When to start lookingSince apartments generally become available about a month before the lease start date, you’ll likely find the most availability when looking a month in advance. Starting your research even earlier will enable you to familiarize yourself with the market and the kinds of apartments that meet your criteria before you visit in person.

Especially if you’re new to New York City, you may want to start familiarizing yourself with different areas. We’ve created a series of Neighborhood Guides to help you figure out what neighbor-hood is right for you and provide some tips on each area.

BrokersBrokers

Brokers are state-licensed real estate professionals who help with the search process, accompany you to apartments to provide ad-vice, and guide you through the application process. Some NYC buildings prefer that tenants use a broker, so that applicants are educated about the building, apartment, landlord’s policies, and the rental process.

Co-Brokes

Brokers can either represent specific apartments, specific cus-tomers, or both at once. When one broker represents you, the applicant, and another broker represents the apartment, we call this a “co-broke.” In these situations, the two brokers will split the broker’s fee between them.

Urban Compass Agents

Urban Compass Agents are licensed real estate agents that are local experts in a region of New York City. They partner with you throughout every step of your search to help you find a great place to live. This includes helping you select apartments to visit, accompanying you to see & provide insight on those places, and helping you apply to your new home.

Applying & FeesApplying

Apartments rent quickly in NYC, and having your documents ready will help you act quickly when you’ve found the right place. Landlords typically review applications in the order in which they are received, so submitting your application quickly can improve the chances of securing the apartment.

Application materials

To apply for an apartment, you will need to complete an appli-cation, usually provided by the landlord. While application forms vary, they typically ask for personal information, employment in-formation, and rental history, including previous landlord contact information.

Organize your documents

Documents required for a rental application, from each tenant and guarantor, often include:

1. Proof of employment letter on company letterhead and signed by a company representative stating position, start date, length of employment, salary, and opportunities for bonuses.

2. If self employed, CPA letter stating annual income and source of income.

3. Last two pay stubs.

4. Last two years’ tax returns.

5. Last two years’ W-2s.

6. Two most recent bank statements.

7. Reference letters from or contact information for previous landlords.

8. Photo ID: driver’s license, passport, etc.

Landlord financial requirements:

Landlords typically require tenants’ combined annual salaries to equal or exceed 40x–50x the monthly rent.

If you do not meet this requirement, many landlords accept guarantors who earn an annual salary of at least 80x–90x the monthly rent.

Landlords look for a good credit history, so you may want to check your credit score before you apply. You can request a free credit report from several online sites.

Guarantors

A guarantor is a 3rd party who is willing to guarantee the entire rent and other provisions in the lease, in case the tenants are un-able to fulfill their obligation. Some landlords will allow applicants to use guarantors in order to meet the financial requirements for approval, and typically require guarantors to provide the same application & documentation as the applicant. Landlords often require that guarantors live in the tri-state area, but some will ac-cept guarantors from a broader geographic range. Some land-lords allow multiple guarantors for the same lease, but each guar-antor is individually responsible for the entirety of the rent and lease provisions.

Application process

Once you have applied for an apartment, while timing may vary, it takes most landlords 24-48 hours to review an application, run credit & background checks, and get back to an applicant with a decision.

If you are approved, lease signings typically occur within 24–48 hours, at either the broker or management company’s office. If you live out of town, most management companies will agree to send you the lease, which you will need to sign, notarize, and return as a hard copy within 48 hours.

Condo & co-op application process

Applying for a condo or co-op is a two-step process, involving approval from both the apartment owner and the condo or co-op board. The entire condo or co-op application process, from initial application to final board approval, can take anywhere from a few days to several weeks.

• The apartment owner will typically review your application within 1–7 days.

• If the owner approves your application, an official board pack-age is compiled and sent to the condo or co-op board of di-rectors. These applications are incredibly thorough and may include numerous personal and work reference letters.

• Co-op apartments will require an in-person interview before approval.

Fees

When you apply to an apartment, you’ll pay a nonrefundable ap-plication fee, usually $50-150, that covers the cost of processing the application and running a credit check.

Your landlord or broker will also typically require an additional deposit, which is only refundable if the application is not approved. If you are approved, this deposit will be applied towards either your broker’s fee or first month’s rent.

While you will not be obligated to take an apartment you’ve been approved for, you will likely forfeit any application deposit you have provided if you back out after approval. Before you apply for an apartment, make sure that it is the right home for you!

Broker’s Fees:

• NYC brokers typically charge 15% of your first year’s rent as their broker’s fee.

• In some cases, landlords cover broker’s fees on behalf of tenants.

Payments at lease signing, in the form of certified check or money order, typically include:

• First month’s rent.

• Security deposit equal to 1–2 months’ rent.

• Broker & co-broker’s fee if applicable.

Security deposit: The landlord takes this payment to protect against any damage done by the tenant over the course of the lease. If there is no damage beyond normal wear and tear of the apartment, the landlord will refund your deposit after you move out.

Condo & co-op fees

The fees associated with condos and co-ops are generally higher than for a rental building. Typical condo or co-op fees may include:

• Move-in fee of $400–500

• Application fee of $250–300

• Managing agent fee of $250–400

Special situations

In cases where the applicant has a limited work history, does not have a U.S. credit history, or does not quite meet the landlord’s financial requirements, the landlord will sometimes ask for addi-tional rent or security up front, a guarantor, or both a guarantor and additional funds up front. The amount required varies, and is negotiated between the applicants and the landlord during the application process.

Roommates

Landlords typically require all roommates and guarantors to fill out a full application, submit personal documentation, and sign the lease. Landlords can look to each individual tenant to cover the full monthly rent, so make sure you and your roommates are on the same page before signing a lease together.

International applicants

Most landlords do not accept credit reports from outside the U.S., so international applicants may need to provide additional rent or security up front, a guarantor, or both a guarantor and additional funds up front.

Pets

Pet policy varies by building. Communicating specifics about your pet, such as weight and breed, to your broker or prospective landlord will help you to find the buildings that best fit your (and your pet’s) needs.