Renting an Apartment in Manhattan

Renting an apartment in Manhattan isn’t like it used to be.

In the old days, you would see a few apartments, give the landlord one month rent and one month security, signed the lease and moved in.

Not today!

Should you rent in a rental building, a coop or condo?

Today’s renting rules in Manhattan can be daunting, but don’t have to be if you work with a good broker, you’re qualified and organized.

To make finding that perfect rental hassle-free it’s best to work with a broker.

Why? You can find hundreds of rentals online, but most of them are already rented, and on some of these sites the information is not accurate.

While it’s not necessary to work with a broker, it is better for you –especially if you’re busy and new to Manhattan. And in today's rental market you need to decide on an apartment fast. Apartments are being rented quickly these days.

By working with a broker you’ll learn which apartments are for rent and which have already been rented. Your broker can also weed out the type of apartments you don’t want because they’ve likely seen all or most of the rental buildings in the city. They will ensure that the lease is correct and that you have all of the necessary paper work – making your move as seamless as possible.

Whether you find an apartment on your own or work with a broker, make sure you read all documents before entering into any contract. Most leases contain predominantly boilerplate language, but in many cases there are riders to the lease which contain clauses that are added to the lease that changes the lease agreement

And type of leases will vary. A Standard Form of Lease may differ greatly from a Rent Stabilized Lease Agreement or a Cooperative or Condominium Sublease Agreement. Read the language of all documents and always ask questions should it contain something you don't understand.

Make a check list of information to bring with you in order to finalize your lease agreement. In Manhattan you will almost always need all of the following:
1. A letter of employment and salary verification
2. Bank account numbers (checking and savings), as well as any credit card numbers
3. Current bank statements
4. Contact information (names, addresses, phone numbers) of previous landlords
5. Contact information of your personal accountant or attorney, if applicable
6. Contact information of any personal or professional references
7. Tax returns from the last two years
8. Recent (current) pay stubs, usually from the last two pay periods
9. Two forms of personal identification (driver’s license, passport, etc)
10.40-45x the rent in annual income is required. And in some building 80X the rent in annual income is required.
11.If the landlord accepts guarantors and you have a guarantor, your guarantor will likely need to supply the same information as above.

If you are relocating from outside of New York, prepare your funds ahead of time. Landlords will not accept personal out-of-state checks. Bring traveler’s checks or certified bank checks in amounts sufficient to cover two months rent, any brokerage fees, a credit check fee, and any additional fees such as a move-in/move-out fee or building application fee.

Once you have all of your personal and financial documentation in order, you can begin viewing apartments. Do remember that your broker can provide you with a wealth of information to assist you in making an informed decision. Ask a lot of questions about neighborhoods, building types, public transportation access, or anything else that might be of interest to you.

Once you have found an apartment you love, you will then fill out a rental application, or other applicable documents. You or your agent will negotiate agreeable lease terms and then a credit report and reference check will be done.

The last step is to sign the lease and pay all applicable fees. Then it’s move-in day!!!

For more information or a consultation feel free to email me at Halstead Property

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Coming soon: Manhattan rents hikes

If you’re finding it difficult to rent an apartment in New York now it could be because there is little inventory and rents are expected to rise.

Last year landlords offered a free month of rent, paid broker’s fees and did whatever it took to rent their apartments. Those days are over. The apartment vacancy rate in New York fell in the first quarter, dropping to just 2.8%.

Last year the median rent for a Manhattan apartment with landlord concessions $2,808, up 7.4%. Renters grabbed the apartments as soon as they saw them. On average, units stayed on the market for 40 days, down from 86 a year ago. Listings fell 25.6% from last year to 3,874 apartments.

Manhattan's rental market is rebounding faster than its sales market. While lower unemployment has boosted demand for rentals. Today if a renter sees an apartment they love, there’s no time to think about it. Take it or lose it because the market is definitely tightening.

Leases are being signed in several of the pricey new rental buildings where studios start at $2,700.

With less apartments vacant and new reports showing that the rental market is hot, renters can expect competition and prices to start heating up again very soon.

Manhattan Rentals Now Bring Incentives And Negotiations

Residential rents in Manhattan have fallen and incentives like a month's free rent, an extra month of rent and no fee are becoming very common. Manhattan rental prices are down between 10 and 15 percent from 2007.

Halstead Property Manhattan 4Q Rental Report 08

In addition to Manhattan properties for sale, my company has a large rental department where we are constantly updated on the Manhattan rental market.

As of late, some landlords are offering an opt-out of lease if one loses their job. Although there are terms and conditions, that should ease a New Yorker's mind if they wish to rent an apartment.

Manhattan has become a renter's market as well as a buyer's market.
If you're a bit hesitant to buy now, why not consider a lower rent, upgrading to a larger apartment at a low rent, more incentives. It's all negotiable!

Tips on Renting Apartments in Manhattan

A Renter's Guide
Ross Ellis is committed to providing the same level of services to her customers seeking rental properties as she offers to those in the market for buying a home. Ross offers you an in-depth needs analysis prior to meeting with you, so she can guide you throughout the leasing procedures and assist you in securing your rental home.

Typical New York lease types:

The type of lease used in New York City may vary depending upon the type of building and the conditions under which it is rented. Often, landlords will include riders that may supersede or effectively change language in the lease. It is important to read the riders carefully because they can nullify any clause in the lease agreement. Both parties must sign any riders added to a lease.

REBNY Standard Form of Lease

This lease has its stabilized and non-stabilized variation and it is primarily used when renting in rental buildings as opposed to renting in a condominium or in a co-operative. When used for a rent- stabilized apartment, a rent-stabilization rider must be attached to the lease. Under the Rent Stabilization laws, the State of New York sets the annual rent increases and the lease is automatically offered for renewal each year

Condominium Lease Agreement (Blumberg Form A101)

This lease may contain a cancellation clause and/or require the lessee to pay any increases in condo charges in addition to rent. Most landlords will allow tenants to remove these two items from the lease. Whenever possible, Halstead recommends using REBNY Condominium Lease instead of the Blumberg form A-101.

Sublease Agreement (Blumberg form P193)

This lease form is used most often when renting in a co-operative apartment and in virtually all sublet situations. It is a one-page legal document and various riders are often attached. As in the case with the condominium leases above, Halstead recommends using REBNY Co-operative Sublease Agreement instead of the Blumberg form P-193.

Lease Agreement (Blumberg Form A55)

Predominately used for leasing Townhouses, Brownstones, and Single Family Structures. This lease is also easy to understand. Again, various riders could be attached and need to be reviewed prior to the execution of the lease.

Guarantors - Some landlords may request a lease Guarantor if the prospective tenant does not meet all financial requirements. A Guarantor is an individual that is qualified to guarantee the performance of the tenant. The Guarantor should earn enough income to satisfy the lease in case of default. Such income requirement is usually in the range of 80-100 times monthly rent. Landlords usually request that the guarantor be a family member living in the vicinity of New York City. Guarantors are usually asked to disclose detailed financial information and fill out a credit application as part of the approval process.

Negotiations - In the present rental market it's yours for the asking.

It is advisable that a tenant receives all promises of repairs and improvements in writing. This may be used as a rent negotiation tool if the tenant decides to pay for some of the costs of improvements. Lease renewal increases can be negotiated prior to signing the lease. It is advisable to consult with a rental agent regarding current market trends.

Short Term Rental Apartments - There is a limited supply of short-term furnished rentals. Prices tend to be much higher than a one-year lease and the supply is limited to the higher end of the market. For unfurnished apartments, tenants may rent furniture for a monthly fee. With basic furniture, the monthly cost of a rental package is about $400.00 per month for a one-bedroom apartment. As a general rule of thumb, one can estimate furniture rental costs as approximately 20% of the apartment rent. Ross Ellis will be happy to supply you with a list of reputable furniture rental companies.

When to begin your search - We strongly suggest that you do not begin your search any sooner then 4-6 weeks prior to your intended occupancy date. If you begin your search too soon, none of the apartments you saw during your home finding trip will be available when you are actually ready to sign a lease. Ross Ellis will work with you in a time efficient manner and will strive to minimize your costs by having just one home finding trip to New York City.

Building Types - There are three types of categories of buildings in which you can rent: a rental building, a cooperative, or a condominium. Each property has its own rules and regulations affecting the time frame in which a tenant will be able to move into the apartment. Ross Ellis will work with you and help you determine which type of accommodation best fits your lifestyle and occupancy date requirement.

Building Terms - Prewar Buildings are those built before World War II. These buildings tend to be less than twenty stories high and are recognized for architectural interest with features such as larger rooms and/or windows, hardwood floors and higher ceilings. These can be either doormen or non-doormen.

Postwar are larger buildings than the prewar ones, and they are built after WW2 through the 1970's. Most will have doormen. They can be found on most city blocks constructed of white, red or brown brick.

Modern Buildings are generally built from the 1980's through the present and tend to be either condominiums or luxury rentals. They are mainly hi-rises with doormen and/or concierge services. Many will house a health club and/or pool within the building.

Loft Apartments are usually large open spaces with high ceilings and big windows. They are predominantly located in the downtown neighborhoods of Manhattan and most do not have doormen.

Brownstones or Townhouses are usually 4 to 6 stories high and are either single-family homes or have been converted into multiple apartments (usually one per floor). Generally, these buildings offer a lot of charm with wood moldings, fireplaces and outdoor space, however they do not have doormen.

Walk-Up Buildings are no more than 6 stories high and have no elevator and no doorman

Studio is one or two rooms combining a living room and sleeping area. The kitchen may be within the same room or separate.

Alcove Studio (or L-Shaped) is a one or two room studio with a separate alcove which could be "walled off" and used as a sleeping area.

Convertible (or flex) is an apartment with either an alcove that can be "walled off" to create an additional bedroom, or whereby the living room is large enough to split, making an additional bedroom while still retaining some of the living room space.

Junior is similar to a convertible in that it is typically an apartment with an alcove adjacent to the living room.

Duplex or Triplex are apartments with two or three floor levels respectively.

Loft Area is an additional space created in apartments with very high ceilings. The loft area is usually constructed above the living room, accessible by a staircase or ladder and typically used for storage or sleeping space.

To find out more information renting in Manhattan with renter incentives, feel free to contact me at 212-317-7828.