Renting an apartment in New York City can be a daunting task. The city’s high cost of living makes it challenging to find an affordable place to call home. However, with the right resources and preparation, the process can be made easier. In this guide, we will provide you with tips and tricks to help you navigate the rental market in NYC.
Online Resources to Look for an Apartment
There are many online resources to help you find an apartment in New York City. Here are some of the most popular:
- StreetEasy
- Renthop
- Craigslist
- LeaseBreak.com
- Roomi
- Spareroom
- Listings Project
- reddit.com/r/NYCapartments
- Facebook Marketplace
- Gyspy Housing
It’s important to note that some of the best deals aren’t posted online. Smaller landlords sometimes have a “for rent” sign in the window. It wouldn’t hurt to pick a few neighborhoods you like, walk up and down the streets and see if you can find a few “for rent” signs.
When to Start Looking?
The norm is to start looking for an apartment 3-4 weeks before you need to move, as this is when landlords start posting upcoming vacancies.
What Documents are Needed?
Landlords and/or brokers are going to need paperwork all the time. Here are some documents that may be required:
- 1040 tax form/W2
- Three consecutive recent pay stubs
- Three consecutive recent bank statements
- Letter of employment confirming length of employment and salary
- Signed reference letter from your previous landlord
Gather these documents into a folder on your computer or phone to make applying easy. Although, less common nowadays, some landlords may want physical documents.
Helpful Tips
- Remember, New York City has a high cost of living, if it’s too good to be true, then it’s likely to be a scam.
- Similarly, if they’re asking for a Western Union, MoneyGram, it may be a scam.
- Good faith deposits are common but take precautions.
- Bring or facetime a friend when visiting an apartment.
- You can find a no-fee apartment; however, they tend to be a bit more expensive. If you find a fee apartment, consider how long you’ll live there.
- Brokers are required to disclose 2 forms before showing you an apartment. You can decline; however, the forms need to be filled when submitting your application.
Things to Consider When Choosing Between Apartments
When choosing between apartments, here are some things to consider:
- How far is your commute to work/play/gym?
- Do you want a building with a doorman?
- Do you prefer an elevator or walkup?
- Do you prefer laundry in-unit, building, or okay with a close-by laundromat?
- What type of finishes are you comfortable with?
- Dishwasher or no?
- Any amenities?
- Do you need a parking spot or on-street parking?
- Can you live on a busy street?
- Consider what utilities are included in rent.
- Do you like a lot of light?
Tenant Rights to be Aware of
Here are some tenant rights to be aware of in NYC:
- Max application fee is $20, and landlords are not allowed to charge more than one month of rent for a security deposit.
- Security deposits must be returned within 14 days of moving out (or give you a bill stating why they withheld it).
- Never rent an apartment if you haven’t physically visited it.
- Moving during the winter is cheaper; however, inventory is significantly lower than the summer.
- There is no legal max for broker fees, but one month’s rent to 15% of the annual rent is typical.
- If the broker asks you to meet at their office, there is a chance it’s a bait and switch. Proceed with caution.
- Good faith deposits are a subject of debate. Use the other tips and err on the side of caution.
- If someone is asking you to Venmo them, it’s a huge red flag.
What to Do on Your Apartment Tour
When visiting an apartment, here are some questions to ask the landlord or broker:
- Test out water pressure.
- Try the flush/shower temperature test.
- What size mattress can fit in the bedroom?
- Ask if the super is around/live in.
- Bring measurements of your stuff and bring a tape measure.
- Where is the nearest laundromat, diner, bodega, supermercado?
- Check out the electrical outlets.
- See if you can chat with the neighbors.
- Check out the management company on Google.
- Sit on the toilet and make sure your knees fit.
- Some places have move-in slots, ask when they are and if you will need insured movers.
- Check your cell phone service in the apartment.
- Look the building up on the bed bug registry (https://bedbugregistry.com/metro/nyc/).
- Neighborhoods with a drug treatment center, homeless shelter, or community clinic can have significantly larger homeless populations in the summer than what you can see if you sign a lease in the winter.
- MOST importantly: you cannot sign away your rights. Your lease may say that your unit is not rent-stabilized, but it may be. Check it against the building list (https://hcr.ny.gov/most-common-rent-regulation-issues-tenants). You have four years to dispute your rent if you are rent-stabilized. Consult a housing lawyer before doing this, as you will be entering a legal process with your landlord. It’s also good to mention that housing lawyers play an important role for NYC renters and can be a resource if you think you are being scammed by your landlord or lease.
How Much Can You Afford?
In New York, a common benchmark for determining your budget is that your annual salary must be 40x the monthly rent. For someone looking at $2,500/month apartments, they must earn a minimum of $100,000/year (Read more on StreetEasy).
If you’re roommates or a couple, 40x the rent will mean combined annual salary.
This rule varies from time to time, depending on your landlord/management company.
You might need Guarantors. A guarantor needs to make 80x. Some buildings require guarantors regardless of income.
What is the Difference Between Net Effective Rent and Gross Rent?
Sometimes, landlords will offer free months to bring in new renters.
- NER = Net Effective Rate.
- EX: “2 months free on a 13-month lease// 2 months free on an 18th month lease.”
- To calculate the net effective rent, you take the total amount of concession and divide it by the length of the lease, then deduct that amount from the monthly asking rent.
- For two months, you’ll get free rent. In most cases, the months are already chosen for you and are marked in your lease.It’s important to understand that for NER, you will be paying the gross rent for the non-free months. If you can’t afford the gross, it may be better to avoid NER units.Some buildings will allow you to pay that net effective rent each month instead of the gross+free months.
- Gross = The total rent
The 40x rent rule will apply to the unit’s GROSS, not NER. When your lease is up, the increase will be on the GROSS, not the NER.
Conclusion
Renting in New York City can be challenging and expensive, but with the right resources and preparation, you can find a great apartment that fits your needs and budget. Start your search online and check out the various resources we’ve listed, and remember to look for physical for rent signs in your desired neighborhoods. When visiting an apartment, be sure to ask the right questions, take measurements, and research the building and management company thoroughly. And finally, don’t forget to gather all the necessary documents and consult a housing lawyer if you feel you are being scammed or have questions about your tenant rights.
FAQs
- What is the typical lease term for an apartment in NYC?
- Most apartments in NYC require a 12-month lease, but some landlords may offer longer or shorter leases.
- Are there any tenant protections in NYC?
- Yes, NYC has a range of tenant protections, including rent stabilization laws and restrictions on security deposits and application fees.
- Is it possible to negotiate rent in NYC?
- Yes, it is possible to negotiate rent in NYC, but it largely depends on the landlord and the current rental market conditions.
- Can you rent an apartment in NYC without a broker?
- Yes, it is possible to rent an apartment in NYC without a broker by searching online and looking for physical for rent signs.
- How much should I budget for utilities in NYC?
- Utility costs in NYC can vary depending on the size of the apartment, location, and usage. It’s best to contact the utility providers directly for an estimate.
