RENTERS GUIDE

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A Guide To Renting In New York City

There are two crucial steps of preparation. The first is gathering the proper documentation. Many people have missed an opportunity to live in their dream apartment because time was wasted chasing down the proper paperwork. The other crucial step is discussing your financial and pet situation with your agent. Time and energy will be wasted if, for example, a bad credit history or a 75-pound dog is not brought to your agent’s attention from the beginning.
In New York, you will most likely need the following documentation. Please gather this information and documentation in advance of your housing search.

1. Letter from employer stating position, salary and length of employment (or start date if you have not yet started), and any information regarding bonus, guaranteed or otherwise.

2. Last three pay stubs

3. Last two years’ tax returns

4. Last two months’ bank statements

5. Name, addresses, and phone numbers of previous landlords

6. Two personal reference letters

7. Two business reference letters

8. Verification of other assets such as real estate, securities, etc.

9. Photo identification (driver’s license, passport, etc.)

If you are relocating from outside of New York, prepare your funds ahead of time. Landlords will not accept personal out-of-state checks. Bring traveler’s checks or certified bank checks in amounts sufficient to cover two months’ rent, a credit check fee, and any additional fees such as a move-in/move-out fee or building application fee.
Once your personal and financial documentation is in order, you will then be prepared to view and select prospective apartments.
Once you find a home that suits you, you must fill out an application, submit documentation, and pay an application fee. When your agent has negotiated agreeable lease terms, a credit report and reference check will be done.
Upon final confirmation, you will be asked to sign a lease and settle any outstanding applicable fees.

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Financial Requirements

Most landlords require that your guaranteed income be between 40 to 50 times the monthly rent. For example, if the monthly rent were $2,800 month, you would need to show a guaranteed income of at least $112,000 per year. ($2,800 x 40 = $112,000)
If your guaranteed yearly income falls below the landlord’s requirement, there are other factors that may make a lease possible:

Landlords may accept roommates combined incomes to determine financial qualification for an apartment. For example, if the rent for an apartment is $2,300, the landlord would want to see a total income of about $92,000. If both roommates make at least $46,000 annually, they could “combine” their incomes in order to qualify for the apartment. If the landlord does not allow for combined incomes, or if the combined total is not enough, they will require a guarantor or lease co-signer, a person who accepts financial liability in the event you or your roommate fails to pay the rent.

Guarantors:
Landlords require that guarantors make between 80 to 100 times the monthly rent in annual income.
Most landlords prefer that you use a guarantor from the Tri-State area, e.g., New York, New Jersey or Connecticut. Some landlords are more flexible and will accept guarantors from anywhere in the U.S.
The guarantor will be required to produce the exact same paperwork as the potential tenants.

Pets:
If you are planning to move-in with a pet, your apartment choices will be limited. The majority of landlords in Manhattan do not allow dogs. Some allow cats but not dogs; some allow one dog only. Certain landlords have a weight requirement for dogs, usually 20 pounds or less. Approval may also depend on the breed and temperament of the dog.

Timing: On average, apartments in doorman buildings are available to view by prospective tenants and their agents thirty days prior to the expiration of the current tenant’s lease.
If you begin your housing search too early, you will invariably find it difficult to see many apartments that match your move-in date.

Typical Application Fees:
Rental Buildings: $ 65 - $ 100
Condominiums: $ 300 - $ 1000
Cooperative: $ 600 - $ 1500
Rent, security, and any brokerage fees are due at lease signing in the form of certified funds. When you have received official approval, you will need to arrange for a move-in date with your landlord or possibly with the building superintendent. You may need to reserve your building’s service elevator as well.