DECIDING WHERE TO LIVE
WHEN YOU SHOULD START LOOKING
HOW MUCH RENT CAN I AFFORD?
WHY WOULD I NEED A GUARANTOR?
WHAT DOCUMENTS ARE REQUIRED?
CHOOSING A BROKER
APPLICATION PROCESS
SIGNING A LEASE
DECIDING WHERE TO LIVE
The first step to renting in New York is deciding where to live. The Boroughs of New York City have many neighborhoods, and micro-neighborhoods each unique in its own way. The Suburbs of Long Island and Westchester provide award winning school districts, and afford more space than city living. Typically, you will need a vehicle if you decide to move out the the suburbs. Understanding commute time to work is a very important consideration. Travel from whichever neighborhoods you have narrowed down, to see how long it will take you back and forth. This is important whether choosing a space in the city, or in the suburbs (walking time to public transportation in the city can definitely add up depending on the neighborhood you choose). Other questions to ask yourself: accessibility to parks, a quiet residential neighborhood, bustling nightlife?
At DMV Equity Real Estate, we can guide you through the process and help you decide what neighborhood, borough, or County is right for you. We can offer you valuable knowledge no matter where you want to live. Here are a few great websites which can provide you with some of this important information:
WHEN YOU SHOULD START LOOKING
First decide when you need to move. Do you need to be in by a certain date to start a new job? Do you need to be out of your current lease by a certain date? What is 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.
HOW MUCH RENT CAN I AFFORD?
Typically tenants who are renting in New York spend typically 25-35% of their gross monthly income on rent. Landlords are looking for tenants who have a good/great credit score, and can prove they make in income 40 times the monthly rent . If credit is poor, or income doesn’t meet the landlords requirements, sometimes they will allow someone to guarantee the apartment. In other instances, some landlords may accept multiple months of rent upfront, if the apartment is not under rent stabilization.
WHY WOULD I NEED A GUARANTOR?
Guarantors are needed in acquiring a lease when a prospective tenant does not meet the income, credit, or employment requirements a landlord requires. They co-sign on behalf of the tenant who will be staying in the apartment. A guarantor can either be a family member or an unrelated party. They have to be financially qualified, and be credit worthy. Typically, landlords will require a guarantor to make 80 times the monthly rent. Also, a majority of landlords require a prospective guarantor to live in the Tri-State Area (Connecticut, New Jersey, and New York). They are required to provide the same documents as a prospective tenant.
If you think you may 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. Also, ask your broker to confirm that a particular landlord will accept a guarantor.
WHAT DOCUMENTS ARE REQUIRED?
In most cases these are the documents required for a prospective tenant (and guarantor):
- Application: We will give you this form once you have identified a property. Some landlords have their own application and some will use our application.
- 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 CPA 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 (1st and 2nd page)
- Bank Statements: 2 most recent statements with your name on the statement.
- 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: (CD’s, IRA, 401(k), Brokerage Account, Etc.)
- Credit report: Either run by us, or by the landlord.
- Clear Copy of U.S. Issued Photo ID, Work Visa, or Green Card.
- Good Faith Deposit: Typically 1 months rent, which can be applied towards, a security deposit, 1st months rent, or a broker fee.
CHOOSING A BROKER
One of the most important steps is finding a knowledgeable and professional broker that can help you through the process. There are thousands of apartments in New York City and very few vacancies. A real estate professional has access to numerous properties you may otherwise not come across and it is important to work with someone that can guide you and save you time and money.
At DMV Equity Real Estate, we will discuss potential apartments that fit your needs based on neighborhood, size, budget and availability. We will also arrange access to the properties. Once you decide on the perfect home, we will help you secure the apartment. We will be there for the entire application and approval process. Time is of the essence and we will make sure that you do everything possible to secure the apartment.
APPLICATION PROCESS
So you found a spot in a perfect location for you. Now what? We will guide you step by step through the application process. The first step is to fill out the landlord’s application or our application. We will advise 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, we will present your information to the landlord and oversee the approval process including any negotiations. The rental process moves fast so be prepared.
If you are renting in a cooperative (coop) or condominium (condo) you will need to prepare a board package. Please note coop’s can take 30 days or longer and condos can take several weeks for the waiver of first right of refusal. Further detailed information will be provided if this is the direction you end up going.
SIGNING A LEASE
Your Approved!!! These are 2 excellent words to hear after your apartment hunt. But wait, the process isn’t over yet. We need to sign the lease. Once the lease signing is scheduled, all funds are due in the form of certified checks. We 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.