Renting an NYC Apartment: Standard Procedures and Tips for Navigating the Real Estate Market

Finding an apartment in New York City can be a daunting task, especially for first-time renters. The city’s high cost of living and competitive real estate market can make it challenging to find affordable housing. We will explore the standard procedures for renting an apartment in New York City and provide some tips on how to navigate the city’s real estate market.

Renting an NYC Apartment: The Basics

The first step in renting an apartment in New York City is to determine your budget. Many new renters in New York are surprised to find out that the standard procedure for renting an apartment in NYC is to make 45 times the monthly rent in annual income. For example, if the monthly rent is $2,000, you would need to make at least $90,000 per year to qualify for the apartment.

While having good credit score and some money saved in the bank help, landlords want to see that you are financially secure and have money coming in on a monthly basis to pay the rent.

Once you have determined your budget, you can start your search for an apartment. There are several ways to find available apartments in NYC, including online listings and real estate brokers. We highly recommend working with a qualified real estate agent to help find your apartment as we have access to more inventory than someone not in the industry. In fact, changes to popular sites such as StreetEasy in recent years now require agents to pay if they want their listing to appear on the site.

Working with a real estate agent in a competitive and complex market like NYC is crucial to helping you through the process

When you find an apartment you are interested in renting, you will need to submit a rental application. The application typically requires proof of income, a credit check, and references. If you are approved for the apartment, you will need to sign a lease agreement and provide a security deposit, which is usually equivalent to one month’s rent.

Your real estate agent will help you negotiate terms of the lease.

Navigating the NYC Real Estate Market

The NYC real estate market is notoriously competitive, which can make finding an apartment challenging. However, there are several tips you can follow to increase your chances of finding an apartment that meets your needs and budget.

One tip is to start your search early. The NYC real estate market moves quickly, and apartments can be rented within hours of being listed. By starting your search early, you can get a head start on other renters and increase your chances of finding an apartment before it’s rented. Additionally, this will help you get a sense of the type of inventory that exists within your desired price range.

The New York City rental market moves very quickly - having all your documents and financial information prepared before your search is important

Another tip is to be flexible with your search criteria. It’s unlikely that you will find an apartment that meets all of your requirements, so be prepared to compromise on certain features. For example, if you are looking for a two-bedroom apartment but can only afford a one-bedroom, consider a convertible apartment or a studio with a separate sleeping area.

Finally, be prepared to act quickly when you find an apartment you are interested in. Have all of your paperwork and finances prepared before you start your search so that you can submit an application as soon as possible. This can increase your chances of being approved for the apartment and securing it before other renters.

Renting an apartment in New York City can be a challenging process, but it’s not impossible. By understanding the standard procedures for renting an apartment in NYC and following some tips for navigating the real estate market, you can find an apartment that meets your needs and budget. Whether you are a first-time renter or a seasoned apartment hunter, there are resources and tools available to help you find the perfect apartment in the Big Apple.

Questions about renting in NYC or looking to find your next apartment? Get in touch with us today.

New York Renters Faced with Steep Lease Renewals

Data shows rents in New York have reached or surpassed pre-pandemic pricing

Rents across New York City have been on a tear, rising passed pandemic lows in some neighborhoods of the city. Rents plunged at the start of the pandemic as uncertainty swept the city and many renters fled to other homes outside the city or relocated. Now, however, rents are surging.

Many renters that entered into leases during lows of 2021 are approaching the end of their leases and are being caught by surprise with the steep renewal rates that are being proposed by landlords.

During the pandemic, Renters that new that would be staying put in the city began apartment shopping, finding spaces that they never thought were possible for themselves. Perhaps that was simply being able to afford to live alone or upgrading to a luxury building with full amenities in a prime location. When vacancy rates were high, landlords were desperate to secure tenants and offering extensive concessions.

The need for rock bottom prices and concessions came to an end as demand increased in New York. Rents in New York rose 33% between January 2021 and January 2022, nearly double the national average according to a study cited by The New York Times.

Rents in city’s most coveted neighborhoods experienced even larger swings, with some areas such as the Upper West Side and Williamsburg now seeing rents some 40% higher and even higher than before the pandemic.

Rents in some neighborhoods of Manhattan such as the Upper West Side have increased some 40%, more than double the national average

With pandemic deals expiring, rents are rising by hundreds of dollars a month. While many Renters who locked in COVID deals on their leases knew the deal was not going to last, many did not expect the extent to which rates would increase after the initial lease period.

The increase in rent, while a sign of the market stabilizing and the city recovering, is a frustrating situation for renters nonetheless.

In data cited by Bloomberg, it notes that tenants paid a median rent of $3,630 in February 2022, the highest for any month in more than a decade

What Should Renters Do?

Renters facing steep increases on lease renewals need to really asses the increased cost. While large rent increases are a hard pill for anyone to swallow, sometimes all the factors of moving can still be more than staying put.

Additionally, inventory is tight so finding a new option could also be challenging. Renters will need to re-adjust their expectations of what they can afford at their price range in today’s market.

Of course, if the proposed renewal price is simply out of your price range, begin your search for a new space as soon as possible. Partnering with a Broker that knows the city and can navigate the complex Rental Market will be a huge asset. Who you work with matters, so ensure you are working with an Agent that is a good fit. Negotiating with Landlords can be challenging so having a skilled negotiator on your side to get you the best deal is a must.

My Lease is Expiring: Should I Stay in my Apartment or Rent Something New?

If you are currently a Renter or have rented a property before, you. Know that dreaded feeling when your lease expiration date is quickly approaching. With the expiration of your lease approaching comes the question, and decision, of: should I stay in my existing apartment, or find a new apartment to rent?

 It is important to remember there are two sides that are influencing here – you as the Renter, and the Owner or Landlord. This can be a tough decision to make as it is influenced by multiple factors – we discuss how to think about decision so you can enter your next lease with confidence.

Factors Influencing the Owner or Landlord 

When thinking about renewing an existing lease with a tenant, an Owner must weigh various costs. The owner is looking at these factors for you to stay:

1. Broker Fee: Depending on the state of the Rental market, it is likely that the Owner will need to offer a concession to secure a new tenant. This is typically paying the Broker’s fee so the new tenant does not have to. This is one’s rent or 15 percent of the annual rent.

2. Standing Empty: What is the risk of the unit sitting vacant for 1 month? 2 months? Even longer? When the empty is unoccupied, the Owner risks losing income.

3. Current Market Conditions: The Owner must have a pulse on the current state of the rental market at the time of your renewal – is it favorable to Owners or Tenants? This impacts the dynamic of their being able to increase the rent, how quickly they may be able to find a new tenant if they do not offer to renew, etc.

4. What is the last price a comparable apartment rented for? Perhaps you entered your lease when the market was lower, and the Owner may be able to rent at a much higher price in the current market. However, Owners prefer a good, known tenant that they dealt with rather than a new unknown tenant. This is where the tenants’ discount lays.

What to Consider as a Tenant

As a tenant, is important to approach the expiration and possible renewal of your lease with an understanding of the following questions.

1. How long do you need to extend for? One year? Six months? Month to month? The shorter the lease, the more it will cost monthly.

2. Current market value for your apartment that you are renting: If you have been paying significantly less than what it could rent for today, it is not unreasonable to expect some increase in the monthly rent on your new lease.

3. Cost of moving: Perhaps one of the biggest considerations that is often overlooked. Is saving $200/MO on rent really worth the cost of moving?

The costs of moving include more than just the fee paid to the Movers. There are both financial and mental costs.

Think about Security deposits, packing, finding movers, moving fees, broker’s commission, time lost from work, possible condo application fees, unpacking. Often times, this costs will largely outweigh the annual cost of an increase in rent.

4. How long do you plan on staying? Does your timeline have moving to a new location in 2-3 years, or perhaps moving in with a partner or buying a property? If so, it may make sense to stay in your existing apartment despite an increase in Rent. Again, the costs and stress of moving may not outweigh an increase in rent.

How New York City's New Rent Laws Could Impact You

You may have heard chatter over Rent Laws in New York City over the recent weeks, and wondering what is it all about? City Council recently met to conduct their annual meeting in Lower Manhattan to discuss this years rent guidelines. With over 65% of New York’s 8 million people being renters, these regulations will likely impact you or somebody you know. With mixed opinions on the board's decisions, let's dive into precisely what the board decided. 

Rent Regulation

One of the most significant disagreements to be resolved in this years meeting was the issue of rent regulation. Previously if a tenant were to live in a rent regulated apartment and their income was to surpass a certain amount, the apartment would become deregulated.

Now, if you live in a regulated apartment, your apartment will continue to remain regulated despite your financial situation. Additionally, the laws called for more apartments to be part of the rent-regulated system. Additionally, and notably landlords now only have the power to add up to $89 to an apartments rent in between tenants after a renovation, previously landlords had the ability to add up to $1000.

For Renters

For regular renters, this meeting was a harbinger of good as well. It was a common occurrence for troublesome tenants to be put on a “blacklist” by their landlord; this is now considered a misdemeanor. Additionally, more restrictions have been placed on evictions, giving the tenants more time to leave their apartment if evicted and creating a fine between $1,000 and $10,000 for illegal evictions on the part of the landlord. 

Other ways the new laws impact Renters include:

• Security Deposits must be returned to the Tenant within 14 days of vacating the unit

• At least 30 days’ must be given to Tenants if the Landlord intends to raise the rent by more than 5%

• Tenants have 30 days to fix lease violations, up from 10

• Application fees are limited to $20, even when a background check is included

However, the news was not so good if you are a renter of a rent-stabilized apartment with the board voting 5-4 to raise rents for the 3rd consecutive year. The increase will go into effect on renewal leases started on or after October 1st, 2019, and September 30, 2020. The increase will come at a 1.5% increase for one-year leases and 2.5% for two-year leases. While this is still an increase, it is rather small compared to the 14% increase that New York had seen in the ’80s.

The new regulations affect a wide variety of renters and landlords in positive and negative ways. Feedback from Landlords is that these laws are disincentivizing them to upkeep existing apartments given there may be a cap on how much they can increase rent after a renovation. However, tenant advocates see the laws in a positive light, saying that some of them were desperately called for. 

Why You Should Start Looking for your Summer Rental in The Hamptons Now

Thinking about renting a house in The Hamptons this summer? Now may be a good time to begin your search, especially for the 2018 Summer Season. It may seem early, however, it is never too early to start scouting out properties and negotiating with owners to ensure you get the house you want for the summer. Remember, you will have the house for the summer so spend the time and effort to ensure you get what you want!

The Summer 2018 Hamptons Rental season is already off to a quick start thanks to the U.S. Open Golf tournament coming to the Shinnecock Hills Golf Club in June. This event is expected to draw a sizeable crowd and has already resulted in inquiries for rentals on the East End. Additionally, because some owners are now listing properties that they might not have otherwise given the opportunity, now is the optimal time as it relates to inventory selection.

We are expecting the number of transactions to be higher for the 2018 season as compared to 2017 because of a change to the Rental Permit Law enacted by the Town of Southampton. The law was revised to allow rentals shorter than the previous 2-week minimum. There is now a waiver for special occasions and large events which can put a squeeze on the limited hotel inventory in the area. With that said, wealthy individuals may turn to renting a home for their stay during something like that U.S. Open rather then turning to a hotel.

Additionally, we have talked a lot about the changes to the tax code and how it could impact real estate markets. We believe that the tax changes will impact the Hamptons Rental Market by increasing the size of prospective renters looking for property. Most people have now had an opportunity to see how the changes impacted their paychecks and have worked with their tax advisors to forecast their 2018 tax lability under the new guidelines. People are feeling wealthier and, generally, increased wealth leads to people being more likely to and willing to spend money.

Get ahead of the curve and begin your search for a summer rental in the East End now. Inventory is better earlier in the season as compared to later in the season (May/June).

Things to Consider When Looking for a Summer Rental:

• Allow yourself time to find a rental and carefully review all the stipulations, etc. put in place by the land lord

• Questions to consider: do they allow pets? are utilities included? are you, as the tenant, responsible for paying for pool maintenance, gardener, etc.? what is the security deposit? 

• Owner may be more likely to negotiate the rate for the summer if you commit to locking in early (now).

• A good summer rental can make or break the summer, so be sure to do your research before committing

• Read the description thoroughly as well as the amenities. Try using services like GoogleEarth to scope out the property to see if it is located near any 'annoyances' (remember you will be spending the summer there!)

Opportunity to Rent in Southampton

82 Pheasant Close North, Southampton

First time offered on the rental market, this brand new magnificent home with 22' ceilings boasts 9 bedrooms, 8.5 baths and has all one could wish for in a summer retreat. The lower level has a 15 seat movie theatre, wine cellar, arcade, full gym, sauna and steam rooms and 2 bedrooms with 3 baths. Sited behind electric gates with a heated edgeless infinity saltwater pool, asphalt surface tennis court and hot tub, this location is prime as it is close to village shops and ocean beaches. Call for details as they are too numerous to mention. This will not last - contact us below for your private showing today!

Rental Terms:

June: $150,000

July: $350,000

What to Expect When Buying a Property for Investment Purposes

Recent stock market volatility have you concerned about your portfolio? Real estate is one of the largest sectors of investment, both public and private. In times of volatility and uncertainty, we are reminded about the safety of a real estate holding. While it could never be guaranteed that something will definitely appreciate in price, the long-term trend suggests that real estate does appreciate in value over the long-run while not being subjective to wild price swings that you might see in an equity.

Many financial planners would argue that real estate should be a holding in any well-balanced portfolio. Additionally, real estate has the potential to create substantial yield while you hold the asset thanks to the ability of renting the property. Thinking about investing in real estate and planning to rent it out? We assist many clients with buying, whether resale or preconstruction, as an investment vehicle to rent out. It is always recommended that you speak to your financial planner and tax advisor to understand the role of real estate in your portfolio and tax situation.

We can help you hone in on an apartment that meets your needs for an investment, and additionally, can help you successfully rent it as we understand what prospective tenants are looking for and what they value.

So, you made your investment purchase and want to rent your apartment, what are prospective tenants looking for? What can you do to extract more value out of your investment?

What Prospective Tenants are Looking For:

Value- The state of the rental market will dictate just how much value a prospective tenant may seek, but value is always something a renter will be looking for. Hire a broker to help position your apartment on the market to remain competitive with other listings in the building and within a similar price range.

• How much are the application fees? Should you consider paying them as a concession to remain competitive?
• Will you pay the broker’s fee?
• What are the building amenities? Is access to them an additional fee?

Aesthetics- While this is something more personal, we do see, however, that the majority of renters are looking for a unit that offers light and some views as well as an overall clean condition. If you bought preconstruction, your unit should be in brand new condition for the first tenant. On the other hand, if you bought a resale unit, be sure to make sure the unit has a clean appearance to attract as many prospective tenants as possible.  They will be paying attention to things such as:

• Condition of bathrooms, kitchen, and flooring – are edges of doors, counters, etc. clean? Do the appliances function properly? Is the flooring cracked?
• Does the apartment need a fresh coat of paint?

While some of these may seem like small items, they ultimately influence a prospective renter’s decision to pick one apartment over another, especially if they are deciding between units within the same building.

Ways to Extract Additional Value out of Your Investment:

There are additional ways to squeeze a bit more rent out of your unit and also have an increased likelihood to win over a prospective tenant as they are shopping around. While some of them are an expense upfront, they are some of the most common requests we see from prospective renters. Thus, you will most likely recoup the cost of these investments into your property.

• Consider building out the closets to maximize storage with systems such as California Closets
• Install Electric Shades/Window Treatments
• Ensure the washer/dryer are good machines. It may be worth it to upgrade the machines from the base units that came with the apartment

Hiring a broker will be crucial to maximize the rent received. They are able to position your apartment on the market to appeal to the right audience and spend the time to understand the intricacies of the board package and fees.

• Price correctly! Rely on your broker’s expertise to price correctly so you can rent sooner rather than later.
• Get the condo leasing application to review the fees. That way, your broker can speak to prospective tenants about all fees associated with the unit. Additionally, this is important to understand in case you need to offer concessions to remain competitive
• Good photos matter!
• Get a floorplan of the unit to place online with the listing

We currently have a wonderful selection of apartments on the market for rent:

50 Riverside Boulevard, 11L

4 Bed | 4.5 Bath | $24,995/MO - View Listing

One West End Avenue, 28C

3 Bed | 3.5 Bath | $14,995/MO - View Listing

188 East 64th Street, 2603

1 Bed | 1 Bath | $3,995/MO - View Listing

Additionally, we have successfully executed leases for our clients around the city including:

• One Beacon Court - 32C, 39D, and 34B
• 255 East 74th Street, 5B
• 20 Pine Street, 1007
• One57

Questions about investment in property with the goal of renting the unit for income? Contact us to arrange an appointment to discuss your goals and we can tailor a collection of units to meet your needs.