HOW TO RENT

New York State Real Estate Board

What to Bring on Your Apartment Search

In the New York City real estate market time is of the essence if you want to guarantee that your dream home is yours to rent. That means having all the necessary paperwork and materials ready and available before you begin your apartment quest. 

REBNY recommends that you bring the following items with you:

• Letter of employment. It should be on company letterhead, signed by a supervisor, and include the following items: salary, guaranteed bonus, title, start date and housing allowance, if any.
  
  
  
• Two recent pay stubs.
  
  
  
• Bank account numbers and verification contact information.
  
  
  
• Investment account numbers and verification contact information.
  
  
  
• Names, addresses and phone numbers of previous landlords.
  
  
  
• Names, addresses and phone numbers of accountant and attorney.
  
  
  
• Names, addresses and phone numbers of personal and business references.
  
  
  
• A copy of your past two years federal income tax returns.
  
  
  
• Additional sources of income, if any, with verification.
  
  
  
• Personal ID with photo, e.g. driver's license and/or passport.
  

REBNY also recommends that you line up necessary funds particularly if you are relocating from out-of-town since landlords often require bank funds and will not accept a personal check out of the Tri-state area:

• If you can't open a New York bank account before you begin your apartment hunt bring the necessary funds with you.
  
  
  
• Bring enough travelers' checks to cover the cost of 2 month’s rent. (This comprises the required first month's rent and one month security.)
  
  
  
• Bring funds to cover the broker's fees. These fees are due upon signing of the lease. The broker’s fee is set by each brokerage firm.
  
  
  
• Bring funds to cover a credit check. Usually this amounts to $25-$50 and can usually be paid by personal check.
  
  
  
• Bring funds to cover possible move-in/move-out fees.
  
  
  
• If your salary level and financial picture does not meet the landlord's minimum requirement, be prepared to line up a guarantor who will guarantee your lease. The guarantor will need to live in the New York tri-state area, have an income of twice that required by the landlord and to produce financial documentation to prove it.
  
  
  

New York City's Three Main Types of Apartment Leases

Prime Lease

A prime lease is a lease that comes directly from the building owner. If the building has more than five separate apartments, they are probably "rent stabilized" under the New York State rental guidelines unless they have rents above $2,000 per month and have been officially been registered as "decontrolled". Common aspects of rent stabilized leases are:

• The annual rent increases are based on rates established each year by the New York City Rent Guidelines Board.
  
  
  
• The tenant can renew the lease on a one or two-year basis.
  
  
  
• Security deposits must be placed in an interest bearing bank account.
  
  
  
• NOTE: As of September 2011, vacancy leases for apartments that were previously renting for at least $2,500 a month are generally no longer subject to rent stabilization guidelines.
  Common Aspects of Decontrolled Leases are:
  
  
  
• Decontrol in apartments renting for $2,500 or more per month has now expanded to include tenants earning $200,000 or more per annum for two years.
  
  
  
• Tenants in occupancy have a right of first refusal to the unit at the new market rent.
  

Sub-Lease

Sub-leases are generally used for renting a cooperative apartment or a rental apartment for a period of the remaining lease. Since owners in cooperative buildings are technically owners of shares in the Apartment Corporation, each shareholder is a proprietary tenant and has the right to sub-lease his or her apartment. Common aspects of a sublease are as follows:

• Separate application and processing fees through the building's managing agent are required.
  
  
  
• Approval by the board of directors or landlord is always required so allocate a longer lead time for a co-operative sub-lease where time limits of one to three years are usual.
  
  
  
• Under certain circumstances, rent stabilized tenants may sublease their apartments.
  

Condominium Lease

Leases for condominiums are often similar to leases in rental buildings. However, the owner is a private owner as opposed to a general building owner. Common aspects of the condominium lease are listed below.

• Term of lease is negotiable.
  
  
  
• Board approval is generally not required, but separate application and processing fees through the building's Managing Agent are customary to receive a Waiver of the Right of First Refusal.