Rental guide
First steps of renting in New York City
Set your priorities and decide where you want to live.
Ask yourself what is important to you: accessibility to transportation, a quiet residential neighborhood, bustling nightlife, proximity to work, being close to parks?
Know your optimal move date.
Ideally you should start to look at apartments 30-45 days before you need to be in your new home. Vacant apartments are available immediately and occupied apartments are usually listed 30-45 days prior to vacancy. If you start looking too soon, the apartments may not be available for your ideal move date.
Determine your budget.
New Yorkers generally spend approximately 25%- 35% of their gross annual income on rent. For example, if you earn $100,000 per year, you might end up spending around $25,000 to $35,000 per year in rent, or about $2,000 to $2,900 per month. Landlords generally require prospective tenants to make 40 times the rent and have a good credit score/rating. If you do not meet the financial or credit requirements, you may need a guarantor.
A guarantor is someone who is willing to co-sign a lease on your behalf. They are responsible for all the terms of the lease. They have to qualify financially. Landlords typically require that guarantors earn a gross income 80 times the monthly rent. For example, if you are renting an apartment that is $4,000/ month, the guarantor will need to make $320,000 per year. They will be required to produce the same paperwork as a potential tenant. Most landlords require the guarantor to live in the tri-state area (New York, New Jersey and Connecticut) although there are exceptions.
If you think you will require a guarantor, speak with them in advance and confirm they are willing to sign as a guarantor and disclose their financial information along with the documents necessary to secure a lease.
Find a knowledgeable and professional agent that can help you through the process. There are thousands of apartments in Manhattan and very few vacancies. Your agent will discuss potential apartments that fit your needs based on neighborhood, size, budget and availability. They will also arrange access to the properties. Once you decide on the perfect home, they will help you secure the apartment. This involves an application process and approval that varies from landlord to landlord. Time is of the essence and your representative will make sure that you do everything possible to secure the apartment.
Required documentation
Be prepared, have your documentation ready.
Landlords usually require the following documentation for renting an apartment in a rental, condo or coop building. You may be asked by some landlords to provide additional items.
Application process
Once you've decided on the perfect apartment, your agent will guide you step by step through the application process. The first step is to fill out the landlord's application or our application. Your agent will inform you of the necessary paperwork required for a specific owner to move forward. You will also be required to pay credit check fees and applications fees at this time. Once all of the appropriate paperwork is gathered, your agent will present your complete application to the landlord and oversee the approval process including any negotiations.
If you are renting in a cooperative (coop) or condominium (condo) you will need to prepare a board package. Please note coops can take 30 days or longer and condos can take several weeks for the waiver of first right of refusal.
Lease signing
Once your application is approved, a lease signing will be scheduled. At this point all funds are due in the form of certified checks. Your agent will advise you on the appropriate fee amounts which, where applicable, typically include the first month's rent, a security deposit (i.e. one month's rent or more) and the broker's fee, all due at the lease signing.
Set your priorities and decide where you want to live.
Ask yourself what is important to you: accessibility to transportation, a quiet residential neighborhood, bustling nightlife, proximity to work, being close to parks?
Know your optimal move date.
Ideally you should start to look at apartments 30-45 days before you need to be in your new home. Vacant apartments are available immediately and occupied apartments are usually listed 30-45 days prior to vacancy. If you start looking too soon, the apartments may not be available for your ideal move date.
Determine your budget.
New Yorkers generally spend approximately 25%- 35% of their gross annual income on rent. For example, if you earn $100,000 per year, you might end up spending around $25,000 to $35,000 per year in rent, or about $2,000 to $2,900 per month. Landlords generally require prospective tenants to make 40 times the rent and have a good credit score/rating. If you do not meet the financial or credit requirements, you may need a guarantor.
A guarantor is someone who is willing to co-sign a lease on your behalf. They are responsible for all the terms of the lease. They have to qualify financially. Landlords typically require that guarantors earn a gross income 80 times the monthly rent. For example, if you are renting an apartment that is $4,000/ month, the guarantor will need to make $320,000 per year. They will be required to produce the same paperwork as a potential tenant. Most landlords require the guarantor to live in the tri-state area (New York, New Jersey and Connecticut) although there are exceptions.
If you think you will require a guarantor, speak with them in advance and confirm they are willing to sign as a guarantor and disclose their financial information along with the documents necessary to secure a lease.
Find a knowledgeable and professional agent that can help you through the process. There are thousands of apartments in Manhattan and very few vacancies. Your agent will discuss potential apartments that fit your needs based on neighborhood, size, budget and availability. They will also arrange access to the properties. Once you decide on the perfect home, they will help you secure the apartment. This involves an application process and approval that varies from landlord to landlord. Time is of the essence and your representative will make sure that you do everything possible to secure the apartment.
Required documentation
Be prepared, have your documentation ready.
Landlords usually require the following documentation for renting an apartment in a rental, condo or coop building. You may be asked by some landlords to provide additional items.
- Application: Once you have identified a property, you will have to use the landlord's application, in some cases our application form.
- Letter of Employment: This letter should be on company letterhead with a current date. The letter should state job title, length of employment and income. It must be signed by a supervisor or person authorized to verify the information (*please note offer and acceptance letters are usually not sufficient).
- If self-employed, a letter from a Certified Public Accountant on company letterhead verifying nature of the business and income amount for the last 2 years.
- Your 2 most recent pay stubs.
- Tax Returns: Most recent tax returns. You only need the first page and signature page unless you are applying for a condo or coop, in which case you will need the entire tax return for the board package.
- Bank Statements: 2 most recent statements with your name on the statement.
- Bank Account numbers: they are often required on application forms.
- Landlord Reference Letters: This is not always required but can help in the process. If you are unable to obtain a letter, have a contact name, phone number and address readily available.
- Additional sources of income: If you receive income from other sources you will be required to verify the income through appropriate paperwork. In addition, if you are expecting a significant bonus, you will need documentation available stating the amount.
- Credit report: A credit check will be run by your agent or by the landlord or management company. Credit history and rating is a significant part of the decision process for a landlord or management company. Let your representative know in advance if you have credit issues so you can discuss options.
Application process
Once you've decided on the perfect apartment, your agent will guide you step by step through the application process. The first step is to fill out the landlord's application or our application. Your agent will inform you of the necessary paperwork required for a specific owner to move forward. You will also be required to pay credit check fees and applications fees at this time. Once all of the appropriate paperwork is gathered, your agent will present your complete application to the landlord and oversee the approval process including any negotiations.
If you are renting in a cooperative (coop) or condominium (condo) you will need to prepare a board package. Please note coops can take 30 days or longer and condos can take several weeks for the waiver of first right of refusal.
Lease signing
Once your application is approved, a lease signing will be scheduled. At this point all funds are due in the form of certified checks. Your agent will advise you on the appropriate fee amounts which, where applicable, typically include the first month's rent, a security deposit (i.e. one month's rent or more) and the broker's fee, all due at the lease signing.