You just graduated from the University of Michigan (Aephi, obviously), and are looking to move into the city.
The goal is to move downtown, but you’re pretty flexible. Your budget on the other hand, not so much.
Please god, anywhere but Murray Hill!
After months of apartment hunting, you’re ready to give up. Ugh. Another year in Jericho sounds miserable.
How many more times can you eat lunch at Kitchen Cab?
Just as you’re about to throw in the towel, a magical force by the name of SERHANT. swoops in to save the day.
SERHANT., a multi-dimensional real estate brokerage that sits at the intersection of media, entertainment, education, and technology, is revolutizioning the real estate space one day at a time.
As the most followed real estate brand in the world, SERHANT. disrupts the market with engaging real estate content and provides an elevated service experience that positions clients, partners, and agents for success.
But wait! There’s more!
Enter Samantha Germano, a top buy-side agent on the Lundgren Team, and Garrett Derderian, Director of Market Intelligence.
They are your fairy godparents for the day.
See Also: SERHANT. Reveals The 6 NYC Neighborhoods To Watch In 2022
Transacting over $20 million in sales, Germano is widely recognized as a rising star in the industry.
As an expert in helping buyers, sellers, renters, and investors navigate the competitive and ever-changing market, Germano is here to share her knowledge with us on how to secure your first NYC apartment.
Derderian, an industry expert who always has a pulse on the latest industry trends, is responsible for SERHANT.’s market research and reporting functions. Derderian is here to share the latest industry trends on the sky-high rental market, the desirability of downtown hotspots, and where to get the most bang for your buck.
Keep reading for the inside scoop on what it takes to find your first NYC rental in today’s ever-evolving market!
Renting in New York City comes with its own unique requirements. Let’s start with the financial requirements. If you, as the tenant, are applying for an apartment on your own, you have to make 40 times the monthly rent. If you have roommates, it’s important to note that you collectively have to make that amount, not individually. If that’s not the case, don’t sweat it! Buildings will also accept guarantors, or a co-signer, whether that’s a family member or a 3rd party company.
This requirement is to ensure payment on the lease in the event it can't be. If you’re using a family member, they have to make 80x the rent, and if that’s not an option, there are always 3rd party guarantor companies like TheGuarantors or Insurent. Once you’ve found an apartment and signed your lease, expect to pay one month’s rent upfront and one month’s rent for your security.
Pro tip: it is illegal for a landlord to charge more than one month’s rent for a security deposit!
When making an offer on an apartment or submitting your rental application, you’ll need to assemble the necessary paperwork to prove to the landlord or management company that you are financially qualified and will be able to make your monthly payments. Some of the documents you can expect to be requested, but are not limited to, are 2-3 months of recent bank statements, your recent tax returns/w2’s, 2-3 recent pay stubs, a letter of employment with a company letterhead (confirming salary, start date, title), and a copy of your ID.
If you’re self-employed and don’t have pay stubs or a letter of employment, you can share your recent 10-99’s and get a letter from your CPA confirming your projected salary for the year. The building will likely run your credit as well. Pro tip: have all of these items in a folder on your computer before you start your search so you can send it as soon as you find the perfect apartment! Depending on the building and its application requirements, you may need a landlord recommendation letter, proof of past rent payments, or additional forms of ID.
When you start your search, evaluate what your needs are and compare them to what the neighborhood offers. Think about how long your commute will be if you don’t work from home and what trains would be accessible, or be sure to search for the closest grocery stores if you’re someone who cooks at home frequently. If you’re someone who prioritizes amenities, neighborhoods like Midtown East, Financial District, Uptown, Williamsburg or Downtown Brooklyn may suit you. Alternatively, if you’re someone who likes to live near the action of the city and wants a pre-war space, the Village, Brooklyn Heights, Cobble Hill, or Park Slope may be the place for you.
In New York City, no two apartments are the same. Every apartment either resides in a Co-Op, Condo, or rental building, and it’s crucial to know the difference between the three when looking for an apartment to rent. If you see an apartment listed in a Co-Op or Condo building, that apartment will be owned by an individual owner and a real estate agent will likely be representing the listing, meaning you’ll likely be paying a broker fee. If an apartment is in a rental building, it’ll likely be part of a rental management company where the agents do not charge a fee.
As for the application process, Co-Ops will likely have the most extensive and strict application process as they require an interview with the Board of Directors. Only some Condos require an interview. No matter where you’re applying though, application fees cannot exceed $20, per the Statewide Housing Security and Tenant Protection Act of 2019.
When touring apartments, it’s important to ask the right questions to be sure you understand how the apartment and building will be run and what is expected of you as the tenant. If the building has amenities, ask if there is a monthly fee to utilize those spaces and the hours for them as well. Be sure to find out when the days and hours for move-ins are allowed and if there will be a dedicated elevator for you to use.
As for utilities, ask what is being covered by the building/landlord and what you will be responsible for as the tenant. Lastly, if you have a pet, it’s important to ask if the building has any pet restrictions in terms of weight or breed and if there is a separate fee to have a pet and whether it is a one-time fee or a recurring charge.
If you’re not living in NYC, send a friend to tour the homes that are of interest to you, hire a local agent, and thoroughly research the building, apartment, broker, and owner before signing the lease! Given the high demand in the city, it’s advantageous to start looking 2 months in advance. Lease signing will typically happen 30-45 days out, but in some cases, you can sign one up to 6 months in advance. On the other hand, there are instances where you can even sign a lease on a Friday and move in that following Monday. When reviewing your lease, make sure your security deposit is equal to one month’s rent.
Pro tip: it’s illegal for landlords to charge more than that. Additionally, it’s important to find out how far in advance from the end of your lease will the building start showing the apartment to potential tenants.
Even though there may be fewer renters in the market today than earlier in the spring and summer, there is enough demand at all price points to keep the market competitive.
Shares can allow two or more people to live in a space neither could afford on their own, and sometimes you can score a better unit, or building with a nice amenity package that otherwise would have been out of reach.
The median rent in Manhattan hit an all-time record of $4150 in July and the average rent ticked up to just over $5,100. In Manhattan, properties are renting in record time, averaging just 25 days on the market, down from 80 last year. In Brooklyn, the median rent is $3,400 and the average rent is $3,900.
Still, inventory remains incredibly tight - we have yet to see a lull in the marketplace.
People will then have a better understanding of what their work or school schedules will look like moving forward, more housing will become available in the marketplace and the market could stabilize a little bit.
Photography by: Courtesy SERHANT.
