New York’s apartment rental market is extremely competitive. There are literally thousands of apartments to choose from…but renters have to be very quick and very prepared to get the perfect one.
At RentHop we see a broad cross section of New York’s rental inventory and what real estate professionals are doing to price and market their listings. Based on our experiences, here are our 6 questions you need to answer before you begin your NYC apartment search.
Question 1: Should you use a broker?
New York’s apartment rental market is almost unique. There are apartment listings (“fee” or “exclusive”) where the landlord has given a single brokerage the exclusive right to market the apartment. Any prospective tenant who wants to rent an apartment subject to an exclusive must pay the exclusive broker regardless of whether that broker provides any services to that tenant.
Other apartments are advertised as “no fee”. This means one of two things: either the landlord has hired a broker and is paying her fees (an “OP” or “Owner Pays” listing), in which case a prospective renter must work with that broker but won’t pay the fee; or the landlord is marketing the apartment directly (an “open” listing), in which case renters can work with a broker or negotiate with the landlord directly.
There are thousands of rental brokers, and their fees (and their quality) can vary widely. The fee is usually around eight to fifteen percent of the first year’s rent. For that fee, good brokers will know about apartment inventory that renters won’t, and will have insights that may guide the search. They can also greatly speed up the process and address issues before they become problems.
Our tips for working with a broker can help renters get the most for their money.
Question 2: How much rent can you pay?
Rents can vary widely across boroughs and even across neighborhoods depending on the housing stock there. The amount of rent you can pay isn’t dispositive of where you’ll live, or of the kind of apartment in which you’ll live. The key point is to avoid wasting time looking at apartments you can’t afford.
Also note that many landlords require renters to prove a salary 40 times (or even 45 times) the monthly rent or else provide a guarantor for the renter’s liability under the lease. In addition, landlords will often ask for one (or even two) month’s rent up-front as a security deposit, or for renters to prepay one or more months of rent.
Question 3: What features matter to you?
New York apartment buildings have a wide range of amenities. Knowing what matters will help focus your search (and may guide you to neighborhoods where the amenities you want are more common).
One amenity that should matter is proximity to public transit. In New York the subway goes almost everywhere (and if the subway doesn’t a bus probably does). Being near public transit can dramatically decrease commuting time and greatly increase flexibility. Otherwise, consider how much time you’ll actually spend at home. Great amenities may not be worth the money if you’re never home to use them.
Question 4: In what borough(s) do you want to live?
New York has five boroughs with very different characteristics. In many ways each borough is a city unto itself, and in some cases a very large one: if Brooklyn were not part of New York it would be the fourth-largest city in America by population. Limited research (even done remotely) will provide insights into each borough’s general characteristics, neighborhoods, employers, and housing stock.
Question 5: Do you have a pet?
Having a pet adds several considerations to the apartment search. First, many apartment buildings in New York do not accept pets (although many do). Second, it will help to be near services (like a dog run) that a pet needs. Third, certain features may be important for the pet’s comfort, like natural light or being on a high floor.
Be prepared to address landlord concerns when applying for an apartment with a pet. Get information ahead of time certifying the pet’s weight, size and vaccinations (as well as letters of recommendation from a prior landlord). Finally, note that the landlord may request an extra security deposit.
Question 6: How long a lease can you sign?
Although the typical New York lease is one year, there is value to be gained from a longer lease if your circumstances allow. In return for a fixed rent increase at the end of the first year you won’t have to look for a new apartment at that point. Also, broker fees are ordinarily calculated with reference to the first year’s annual rent; spreading that cost over a longer period will reduce the per-month cost.
Lee Lin is the co-founder of RentHop, the smarter apartment search marketplace. He is a self-described data geek from MIT who spent years at quantitative hedge funds cranking out models to explain and predict financial markets. Real estate has always been a big part of Lee’s life. He grew up helping out at his parents’ Jersey Shore motels, became a landlord his first year out of college, analyzed mortgages on a fixed-income trading desk, and acquired a New York real estate license.
Learn more about online rent payment with WilliamPaid.
