Renting a New York City Apartment: The New NYC Rental Market

Yes, the economic crashfest has had an impact on even the most enduring complaint in all of Manhattan - gutwrenchingly high rents. That is right, that stuff I wrote about all the moo-lah you need to prove you have before anyone will even show you an apartment? Ob-so-lete. Well, sort of. 

These days, you can get away with no broker fees, barely much up front, and even - dareIbreatheit - negotiating. I recently moved in with a roommate (lots of New Yorkers do it to keep costs down, which goodness knows I had to do. This is still one pricey town). We found an extraordinarily beautiful tri-plex (quad-plex, if you count the sleeping loft) two bedroom for reasonable rent in a great location on the UWS. I worked with my stand-by broker Alex at Manhattan Apts. and the management co. for the new pad picked up the broker fee. You can get good no-fee apartments these days in NYC. A miracle, really. Search my list of rental resources for links.

Another good option is subletting, an NYC tradition. Many people are leaving town but don't want to let go of their apartments. NYC will always be a desirable place to be, no matter what the market, so they will likely be back. So look for long-term subletting gigs that will help you get your feet wet if you are moving here, or if you just need a crash pad to save some dough. 

So, you still need good credit, cash up front to cover security/first month's rent, all that good stuff. Some buildings and locations are harder than others to find good deals. There are still unethical rental outfits or management companies out there (um, its still New York). But it is getting easier to rent here, so please don't let financial fear keep you suburban bound like it did to me for far too long. 

Renting a New York City Apartment: Finding that Elusive NYC Living Space

It is uber-challenging finding an apartment in New York City. Especially if you don't have a six figure job or a millionaire mama or a last name like Hilton (oh, wait...) Seriously, though, the rents are astronomical and the dearth of available (and decent) apartments is very discouraging. Note my former post on financial requirements for renting an NYC apartment. Whew!

In the months leading up to my move, I was on the computer until 2:00 am in the morning scouring the New York City Craig's List for apartment listings in my price range. With rents twice what I was paying in DC, I was coming up pretty empty handed. But finding that great apartment is possible, if you have the determination, resources and of course, the funds. About 30-45 days before your intended move, and after you determine how much you want to spend, how much space you really need, and where you want to live, use these techniques to find your new NYC home:

Online Rental Listings: When asked about NYC apartments and how to find one, everyone recommends Craigs List. This online site is a beloved resource for apartment seekers in the city, and provides the newbie with great introductory information on neighborhoods, prices and availability. However, there are some bait-and-switch posts (oh, that apartment went quick but I have another you might be interested in for just five hundred $ more!) and if you don't live in the city, there is no way you'll be able to jump on posted apartments quickly enough. Still, this is invaluable, free, primarily legit info and a great first resource. The listings are conveniently divided into fee, no-fee, and by owner rentals.

Many other online sites offer excellent apartment listings and information, and you can find them in the Find a Rental Apartment in NYC list to the left of this blog. Looking online is a ton of fun, and many listings have photos so you can get a sense of what a real NYC apartment looks like (and just how little space $2000 a month will get you!)

New York City Brokers: Uniquely New York City, many people turn to a broker to find an apartment. That is, they pay a fee of up to 15% of the annual rent (translation: thousands of bucks) to have a third party find their housing. Sounds crazy, but in my case it was totally worth it. Here's why: 1) I had no knowledge of NYC and what neighborhoods were good, bad, scary, 2) I wasn't living in the city, and couldn't run to an open house at a moment's notice, and 3) I'd burnt out on Craigs List. The Manhattan rental market is difficult to navigate, so if you can afford the help, take it. Personally, my experience with Manhattan Apartments was invaluable and I enjoyed working their their talented, professional brokers. They helped me navigate the challenging financial demands of landlords and got into neighborhoods I thought were out of reach. I didn't negotiate on the fee because I was so overjoyed with my new apartment, but depending on the market you may be able to get brokers to come down a few percentage points and save yourself hundreds of dollars.

No-Fee Apartments: If you just can't stomach paying so much upfront for an apartment then you can try the no fee route. Prepare for a lot of work and be on guard against disreputable services that will bait-and-switch ya. Here is a pretty good guide to no-fee services. Be sure to investigate company's Better Business Bureau profile before handing over any moo-lah.

Stalking an NYC Apartment Building: You may have determined exactly where you want to live by falling for a specific rental building. How to get in? Keep checking with the rental office, if they have one. If not, keep talking to the doorman. The doormen in NYC are extremely professional and helpful, and know all the goings on in their buildings. So stop by every few days (without being annoying) and in a professional, courteous manner ask if they know of upcoming vacancies. If they help you out, be sure to tip them generously. And doormen talk to each other, so they also might know of openings in nearby buildings.

Word of Mouth: Many of my newly transplanted friends have found apartments by talking about moving to NYC and having contacts hook them up with sublets or roommates. New York City is a very transient place, as people are constantly moving to LA or overseas. Often, they don't want to give up their rent-stabilized NYC apartments and will search for a recommended tenant. If they own their place, they definitely want to rent to a reliable apartment dweller.Talk to everyone you know about moving to NYC. Everyone. Friends of friends, alumni contacts, old lovers (well, maybe don't go that far.) Let everyone know that you are looking for a place to live. At the very least, you'll get tips on where to look, or they might recommend a reputable broker.

Beware Beware Beware: Unfortunately, there are lots of disreputable NYC real estate listings. In a market this hot, the bad guys can get away with a lot. So as they say, if it is too good to be true, it probably is. Beware of listings that seem unbelievable and never ever ever give anyone money without signing a legitimate contract. The best way not to be scammed is to have all the info you can about renting and your rights. Great sources include the NYC Rent Guidelines Board and Tenant.net.

Keep Hope Alive: Finally, don't give up hope. The search for an NYC apartment will be one of the most grueling, challenging things you will ever do. But nearly 9 million people live in NYC, and there is always room for one more. If I can find an apartment that I adore, so can you. Be flexible, open minded, willing and determined and the right apartment will open up for you. And what is a little grunt work and frustration when it means getting to live in the greatest city in the world?

Renting a New York City Apartment: Financial Requirements

When first investigating my NYC move, one of the most intimidating things I ran into was the peculiar reality of renting an apartment here. Talking with others who had made the NYC leap, I became convinced I'd never pass the strict financial rigmarole that landlords demand. Icing on my NYC rental rejection cake was the fact that I was moving to the big city without a job. Landlords don't like that. But through careful preparation and extraordinary blessings from the apartment gods above, I landed a loft studio on the Upper West Side. Here is how I did it, what is usually recommended and what to avoid:

Finances: New York City's rental market is the most expensive in the country, with one bedrooms averaging $2,567 a month (and much higher in trendy, hipster neighborhoods). As a result, landlords want major guarantees that you aren't going to stiff them at the first of the month. Apartments in Manhattan are extremely coveted and since the market is so tight (current rental vacancy is at a measly 3.7 percent) they can-and do-get away with extensive financial documentation demands. The standard requirements are:

• Salary must be 40 times the monthly rent (for example, make $102,680 for a $2,567 one bedroom rental).
• If you don't make those kinds of bucks, a guarantor can co-sign the lease. They must make 80 times the rent (that would be $205,360 for that $2,567 rental). Often, landlords want the guarantor to live in the tri-state area.
• A deposit will be required, usually first & last months' rent plus a security deposit equal to one month's rent (that would be $7,701 for a $2,567 rental). Sometimes additional money might be required for things like pet deposits, credit check, etc.
• Deposits must be made in cold hard cash, via debit card, traveler's check, certified check, money order, wire transfer or dollar bills. That means no credit cards or personal checks.

Documentation: The thing that probably helped me the MOST to get rental approval was my tidy little packet of financial information and recommendation letters. These showed that I was financially solid, employable, reliable and a good tenant.

Required Documents:

• Bank Statement: Provide copy of most recent bank statement, showing all assets.
• Pay Stubs: Provide pay stubs for the last month.
• Employment Letter: On company letterhead and signed by a superior, provide information on position, length of employment and salary (including bonuses). If accepting a new job in the city, you can show an acceptance letter from that company. Personally, I fudged it a little and signed a lease while still employed (in a job in a different city, but it worked).
• Tax Returns: To be on the safe side, provide returns for the last 2 years, both federal and state. Many landlords only require last year's federal return.
• Valid photo identification: Driver's license, passport or employment ID may be used.
• Self-employed documents: Provide most recent tax return and a letter from your certified public accountant verifying annual income from the last tax year.
• Guarantor documents: Must provide an employment letter, copy of federal tax return and/or a document from a certified public accountant verifying annual income.

Additional documentation might be required, including:

• Landlord Letter of Recommendation: This document from your current landlord should attest to the fact that you are an awesome tenant, on time with payments, a courteous neighbor, etc.
• Employer Letter of Recommendation: This letter should say that you are a reliable employee.

As I was moving without employment, I also added the following to my 'please approve me' rental packet.

• Personal Letters of Recommendation: These letters attest to your character. It helps if one of these is from a New York City resident.
• Financial Portfolio Documentation: This showed all my investments, 401K's and savings.
• Credit Score: This Free Credit Report document showed that my credit was excellent.

Other tips: If all of this scares the financial beegeezes out of you (and it should) then consider other options.

• Roommates: Fellow apartment dwellers (especially the independently wealthy kind) are an excellent option as it lends financial credibility and heft. New York City is known for cramming multiple roommies into petite one-bedrooms. Those that shack up with others aren't just post-college grads, but also professionals, actors, artists and those that need a pied-a-terre for business.
• Live-in Love: Romantic partners are an easy and highly sought after NYC roommate situation, but you run the risk of staying together for the sake of the apartment. It is true that some marry for love, others for money, and in New York some say vows for a two bedroom loft in Tribeca.
• Subletting: This form of NYC apartment-getting is an art unto itself. Often, the same financial requirements listed above are expected, but there may be more flexibility. Consider it if you are just trying to get your foot in the door. Summer sublets are highly coveted so best to search for them at other times of the year.
• Crashing with Friends: Many do it. Many love it. Again, this alternative is embraced by professionals and artists alike. Usually, this is a temporary solution and the amount you pay for couch privileges depends on the generosity of your friends.
• BEWARE BEWARE BEWARE! There are some scams floating about as well as some desperate and unsavory brokers, so unless you are super wealthy or really, really feel comfortable with it, do NOT pay months and months of rent upfront to get approval. This may be asked of you if you are trying to get into a co-op building, but it ain't worth it. Get seasoned NYC renters' opinions on any suspicious deal before signing papers or forking over any dough.

Check back to this blog for more tips on how tackle the unique demands of moving to New York City, including how to find an apartment, brokers, unusual aspects of NYC apartment design, etc.!