What Is A NYC No-Fee Apartment?

Landlords of "No-Fee" apartments offer commissions to brokers and then the brokerage firm, such as New York City's best, Elika Associates, passes those savings on to you. Thus, the term "No-Fee" apartments! This system is far more favorable for a tenant - otherwise, as in the past, the broker's commission would have to be paid by the renter.

What Is The Monthly Rent In Manhattan?

Obviously, the rent varies according to the apartment. Monthly rental payments in NYC tend to be high but still vary as homes range from small tenements to luxury penthouses. On the average, tenants can expect to spend approximately 25% of their gross income on rental payments. If you earn $100,000 per year, you should budget to spend $25,000 for a year's rent.

What Is Required By Manhattan Management Companies?

In the eyes of most NYC landlords, the ideal tenant earns 40 to 50 times their monthly rent payment. Landlords, almost without exception, will require a credit report and will expect a favorable report. It is possible to secure an apartment having less than ideal financial circumstances. Financial stability, however, works well for the landlord and the client when renting highly priced NYC apartments.

What Paperwork Is Required By Landlords?

Application Form

The application form is the first step in the process of finding your perfect apartment. NYC management companies can provide you with the appropriate form. Don't wait; download an Elika Associates application form and take that first step towards your new home.

Letter Of Employment

The letter of employment must use a company letterhead. The letter should state position, start date and length of employment, as well as annual income. This document must be signed by a person in authority. A signed offer and acceptance letter is usually not considered sufficient verification.

Pay Stubs

Copies of your 3 most recent pay stubs are also required as proof of income.

Tax Return

Management companies may ask for a copy of your most recent tax return. Every company, however, doesn't ask for this paperwork. If you are self-employed or have varied sources of income, you will most likely be asked to provide a copy of your federal return. Every applicant should be prepared to submit this information if it is the company's policy.

Landlord Reference

When trying to rent an apartment, a glowing reference from your current landlord is a great asset. Indeed, this information is often requested during the process. If you were unable to get a letter, be certain you can pass on your landlord's name, address, and telephone number. Without a reference, a landlord might want to do his own check into your history as a tenant.

Bank Statements

You are generally asked to provide your 3 most recent bank statements. Checking or savings account records are acceptable proof of your banking history. These documents will also show the status and balance of an account.

Bank Account Numbers

You may be required to enter your bank account number on the application form. The paperwork can vary slightly from company to company. Yet it's wise to have this information on hand - in case it is requested in an application.

References

Every landlord doesn't require references but it is better to be prepared for that request. In addition to a landlord's letter, a reference from an accountant or attorney reflects favorably on you. Decide on your references and have up-to-date contact information for them.

Identification

Prospective tenants will be expected to provide copies of identification. Indeed, many landlords require a copy of a photo ID when signing a lease.

Funds

There are substantial initial costs involved in renting a NYC apartment. At the time of lease signing, you need available funds to cover the rent, security deposit, and broker's fee (if any). Personal checks are not accepted to cover these costs. These funds must be in a certified form - bank checks, certified checks, or money orders.

Additional Fees

There can be additional fees which vary from building to building. Elika Associates can offer expert advice in this area.

Move-In Deposit

Every owner doesn't require a move-in deposit. Yet some owners do request this fee which can range from $250-$600. This deposit is often refundable if no building damage occurs during the move.

Renter's Insurance

Some owners insist that you have renter's insurance.

Condo and Co-op Costs

Tenants in condominiums or a co-op can have additional fees - move-in and processing fees as well as additional charges. These non-refundable fees can range from $250-$1100.

Deposits For Pets

Many buildings are pet-friendly but can require an upfront deposit for pets - in case of any damage or other problems.

Temporary Walls

Temporary walls can mean opening your wallet for an additional deposit.

Are Credit Reports An Important Factor?

Almost without exception, credit reports are performed on every applicant and guarantor. A credit report is a very important factor in the approval process. Prior to the process, prospective tenants need to have their credit reports in "as near perfect, as possible" condition.

Aim for zero outstanding payments on your record. Late payments and a high revolving balance will reflect badly on you. Delinquencies, collections, as well as unfavorable public and landlord/tenant records can end your chances. If you have bad credit, inform your agent. Knowing the complete picture allows your agent to represent you in a more effective manner.

Landlords deal with credit issues in different ways. Some landlords will immediately reject an application if presented with a poor credit report. Other landlords may ask that you increase the security deposit or get a guarantor.

Credit reports obtained by tenants will not be accepted by landlords. Depending on management, credit reports/application fees can range from $25-$100. Anchor Associates is always available to guide you through the process. With our expertise, tenants save money and enjoy a stress-free experience.

What Is The Role Of A Guarantor?

A guarantor (or co-signor) is willing to guarantee your lease. Being a guarantor carries a great responsibility. If you default on your payments, a guarantor is responsible for all the terms of your lease and guaranties.This doesn't just include your rent; it includes the entire lease - if in a share agreement.

Will I Need A Guarantor?

Students or young individuals without the necessary income usually need a guarantee. If you have bad credit, management may allow a guarantor. In the case of really poor credit, a guarantor and extra security may be requested by a landlord. If you do not meet financial/credit requirements, a guarantor can be a solution. If you feel you may need a guarantor, always advise your agent so that you can receive the best possible outcome.

How Do I Choose A Guarantor?

When renting NYC apartments, landlords prefer the guarantor to live in either New York, New Jersey, or Connecticut. You do not have to choose a relative. A guarantor needs to have good credit and earn double the income requirements of the applicant. If the application form suggests that an applicant earn 40-50 times the monthly rent, then the guarantor must earn 80-100 times the monthly payment.

A guarantor must also complete an application form. Guarantors must present proof of income (usually tax returns) and a good credit report. Always ask a guarantor and explain the process to them before you submit their name. Guarantors usually do not have to be present at the signing of the lease. Yet a guarantor's cooperation can seal the deal.