How to rent a good apartment in New York: useful tips for beginners

Thinking about moving to New York? You must love challenges. The rental market is crazy right now. The cost of a rented apartment is breaking new records. The median rent in Manhattan hit a new record of $5 in June. Brick underground.

Yes, the rent war is a reality here.

This is quite difficult to understand, although not all that bad! If you are flexible about where you want to live, as well as the size of the apartment and the amenities that you have to give up, you will have more luck. In this case, you can find housing that will be quite budgetary.

If you intend to buy a home, you will be in a better position. Most buyers, frightened by rising mortgage rates and economic uncertainty, are postponing the purchase. Therefore, you will have much fewer competitors in the sales market. Prices are not falling, but there are more opportunities for negotiation. Let's say it's realistic to make an offer 8-10% below the asking price to get going.

Read on for more information on how newcomers can find housing to rent or buy in New York.

1. There's a lot more to the area than meets the eye

Start with the basics: How well do you know the city? If you hear “I was here once” or “Brooklyn is a neighborhood, right?”, then you should definitely explore the metropolis on the spot.

One option is to find an apartment for a short period of time, and in the meantime scout out a few areas that you might like. This will allow you to understand something that is impossible to learn from Internet research. For example, how long does it take to get to the subway, what is the quality of the products in the local supermarket, and which area at night. Of course, there is a lot of information on the Internet, but never underestimate the importance of a real perception of the place. If this is not possible, then at least take a virtual walk around the area using Google Street View and read as much as possible.

On the subject: Renting an apartment in New York: what to look for in order not to rent a noisy bed bug with aggressive neighbors

Do additional research on local news sites. This is a good way to get an idea of ​​what's going on in a particular area. Detailed information about the area is available here Streeteasy . Of course, visiting the area is the best way to get a feel for it, especially if you know what to look out for.

When you choose a room, study its owner and building

Before shelling out thousands of dollars for your first New York apartment, do some background check. Ask a few of your future neighbors what they think of the landlord. Including how the building is maintained and how quickly their requests are fulfilled. Google your landlord, check the building with the Department of Buildings, and look for reviews on sites like openigloo, Apartment Ratings, rent city, bitResi or GoHomeNY. Keep in mind that well-maintained common areas are a sign that the landlord and management care about the building and its upkeep. A door with a broken lock or overflowing trash can indicate safety and sanitation issues - don't assume they'll be fixed just because you move into this home.

Here are some additional questions you and your broker should consider:

How convenient is the area when it comes to metro

If you are more than 10 minutes walk from the subway, or prefer not to travel at all, do you have alternative means of transportation, such as a bus or a Citi Bike?

What food options do you have

Many restaurants in the city have closed during the pandemic. A little research on food blogs like Eater и Grub street, will give you an idea of ​​what restaurants are nearby.

What can you order in a restaurant?

If you need takeaway food delivery in New York City, there are plenty of apps to help you figure out who will be delivering food in your new area. Note that food delivery works better in some areas than in others. In addition, many local restaurants prefer that you call them directly and order food.

If you have a doorman, don't assume that he will take delivery of groceries from you when you are not at home. The growing popularity of grocery delivery services has led some homes to forgo delivery. So be sure to ask what the house policy is. Another point is the etiquette of tipping during the holidays in the new building. To help you determine your tip size, please refer to our annual tip guide.

What are the schools here

If you are moving with children and are planning to send them to a public school, property search will be more difficult.

It is important to know that if you move within a few blocks of an educational institution, this does not always mean that your child will attend that particular school. But the number of students in public schools has fallen as a result of the pandemic, so there are more places than usual. Sounds confusing? There are consultants who specialize in helping you navigate this system.

Note: When it comes to schools, brokers are not allowed to tell you more than whether the building you are considering is within the coverage area of ​​a particular school. And they don't have the right to rate the quality of a school because of federal fair housing regulations.

Be careful: the ad may indicate that the apartment or house is located in the school zone. But don't rely on this information. It may be erroneous or based on outdated school zones. The only reliable way to find out if an address belongs to a certain school is to call them and ask. Most schools have a parent coordinator to help you with this information.

Department of Education provides the most detailed and up-to-date information about schools. In the department, you can find out statistics about the educational institution where you study, and much more. Inside Schools и GreatSchools are excellent resources if you are interested in government institutions. You may want to know about private schools outside of your area. Arm yourself with statistics - this is one of the useful elements in evaluating an educational institution. But nothing will give you a better idea of ​​the school than getting to know it personally during tours and information sessions.

What is the nightlife like

New York City has party areas, quiet family areas, and mix-and-match neighborhoods. In Manhattan, the main hangout centers during normal times are the East Village, the Lower East Side, and Murray Hill. In Brooklyn, these are Williamsburg, Bushwick, Greenpoint, and in Queens, Long Island City, Astoria, and Ridgewood.

If there are too many bars in an area, you might want to look elsewhere. Because if you live in an apartment above the bar, it will be noisy there. And smokers usually hang out on the street. And don't expect your business to change just because you've moved. And as a result of the pandemic, outdoor dining remains. In some establishments, music is played and even various bands perform live. Yeah, it's a lot of fun, but not when you're trying to fall asleep at brunch, so keep an eye out for those restaurants too.

What evacuation zone is the house in?

Superstorm Sandy showed us that severe weather can affect a city in the most dramatic way. And climate experts say even more intense weather is in store for us in the future. Parts of the city most at risk of flooding are evacuated first. Also consider which part of the building you live in. Hurricane Ida clearly showed that basement apartments can be deadly during a hurricane. Plus, if you're buying an apartment, living in a flood zone can mean paying expensive flood insurance and picking up debris in the next big storm.

How safe is the area

Official NYPD website There are crime statistics. But the best way to understand how comfortable you will feel in the area is to ask those who live there. And check it out yourself, especially at night. At 22:00 pm, the atmosphere can be very different than during daytime viewing.

How to easily find a parking spot

With the exception of Staten Island, the answer to this question is likely to be “not very good.” But if you plan to have a car, you can ask residents, brokers and doormen about it. And familiarize yourself with the parking rules on alternative streets. As a rule, in Brooklyn, you will rearrange the car less often than in Manhattan. If you decide to leave the car in the garage, be sure to take into account the monthly fee in your budget. In Manhattan, garage parking costs $400-$500 per month. In some garages located in prestigious areas, the monthly fee reaches 800-900 dollars. Renting a car is also a separate expense line.

2. Money can't buy you everything.

Tenants: Most New York landlords require a tenant to earn 40 to 50 times their monthly rent per year. If you don't earn that much, you'll need a personal guarantor who earns 80 to 100 times a month's rent. He is obligated to pay the balance of the rent in case of default by you. Often, the landlord, among other things, requires that the guarantor live in three states - this makes it easier to recover money from him in case of default. Although some insist that the guarantor live in New York. If you don't have anyone to do this for you, or if your guarantor is not local, you can pay for an institutional guarantor such as Insurent. Their income and employment requirements are significantly less stringent, although you still need to have good creditworthiness.

One way to get around some of these costly barriers is to choose to live together. When living together, tenants receive a room in a furnished, fully equipped apartment with utilities and other amenities for a single all-inclusive price.

Buyers: Even if your finances are in perfect condition, buying co-op housing means you have to go through co-op advice first. And the demands of the council go far beyond the financial. As a result of the pandemic, interviews with cooperative board members are now being conducted remotely. Find a quiet, well-lit area for your interview and try not to be interrupted.

3. Brokers charge commissions in New York

Buyers: Sellers pay a brokerage fee of 5-6%, which is split 50/50 between the buyer's broker and the seller's broker.

Good news: this means that buyers do not pay commission.

Bad news: these fees are included in the seller's asking price.

To save money while retaining critical agent services, work with a brokerage company that offers commission refunds if you do some of the work yourself. preview will take care of almost all the work, including finding ads that match your needs, advising on the right price. As well as preparing an offer, negotiating with the seller and collecting the package of documents that you will need to prove your worth to the council of the co-op or condominium. As a member of the Prevu Smart Buyer program, you will receive a refund of two-thirds of the commissions paid to the buyer's broker when the trade was closed. If you buy a $1 million condominium with a 6% commission, you will get a refund of 2% of the purchase price… $20.

Tenants: In New York, tenants also pay commissions to the broker, and considerable ones. Brokers often charge 15% of the annual rent. But sometimes you can negotiate to reduce this amount to 12% or even a month's rent, especially if you want to rent an apartment quickly. During the recession of the pandemic, landlords were willing to take on the broker's commission. But now that the rental market is so active, they are not inclined to do so.

There are apartments that are rented without a broker's commission. But this is, as a rule, elite housing of a higher class. There, the landlord either hires its own rental agents or pays for the services of external brokers. If you're determined to avoid brokerage fees, be prepared to do some digging.

4. Buyers, don't forget running costs

Buying a co-op is not like buying a house. Make sure you understand the difference between a co-op and a condominium. Technically, in a cooperative, you do not buy an apartment, but a share in the cooperative. And you still have to pay monthly maintenance of the building. Thus, in addition to monthly mortgage payments, you will also pay for building maintenance. Keep this in mind when budgeting. And be aware that running costs usually go up a little each year.

Monthly payments for condominiums are called general fees. Some new condominiums have property tax incentives that keep property taxes very low for several years. Make sure you know what you are getting. And get a realistic estimate (from your lawyer, not the developer) of what taxes might be when the real estate tax break ends.

5. Not all apartments are in rented buildings

Renting an apartment in a rental building is not the same as renting an apartment in a co-op or condominium. The latter is likely to be slightly better in terms of appliances, finishes and amenities. But there is much more bureaucratic red tape in it. Plus higher application fees and often limits on the length of the lease.

6. Keep your checkbook ready

Tenants: When you rent an apartment, be prepared to have a lot of money on hand, usually in the form of a bank-certified check. You will need to pay the broker's commission, the monthly rent as a security deposit, and the first month's rent within a few days of signing the lease. One way to cut down on upfront costs is to find a roommate or share an apartment.

Buyers: Mortgage rates are rising. And for this reason, some buyers are considering adjustable rate mortgages to cut down on their costs. If you can offer cash, then speed up part of the buying process.

7. Net effective rent is lower than what you will actually pay

When demand is lower, such as in winter, you can find an apartment with a free month (or even two). Many landlords in New York offer this discount at the beginning or end of the lease to encourage you to sign the contract. Some landlords distribute the discount over the entire lease term in what is known as net effective rent or advertised rent. But the net effective rent is less than the amount (known as the gross rent) that you actually have to pay during your non-free months.

8. If you have a dog, especially a large one, your accommodation options will be more limited.

Many buildings in New York City either prohibit pets or have weight and breed restrictions on dogs. Therefore, before signing the contract, check it. Also check the rules for pet-friendly homes. Your landlord or management company may want to check on your pet.

Due to the pandemic, outdoor space is becoming more and more popular. And if you have a dog, you'll want to live near parks and playgrounds. Some areas are more pet friendly than others. When looking for an apartment, consider the nature of your animal. Does your Yorkie get scared at the sound of footsteps? Then it is better to forget about the apartment on the ground floor. He is already many years old, and he can hardly keep on his feet? In this case, the first floor may be a smarter choice than the 38th.

If you want to buy a co-op apartment, your pet will need to pass a board of directors check. Sometimes this involves "interviewing" the animal, but usually it's a fairly simple process. Consider creating an "animal resume" to help document your pet's medical and training history.

9. Descriptions can be deceiving.

Of course, you would like to believe that the ads for sale are completely true. But some brokers can be flexible with the facts. Here are a few things to keep in mind when viewing ads:

The word "luxury" is used too often. It is used to describe all kinds of buildings, so do not give it too much importance.

Do not take the broker's word that the apartment is "transformed" into several bedrooms. Sometimes "convertible" simply means a not-too-small living room. In addition, temporary walls are now banned in many buildings, so before you rent a one-bedroom apartment that you plan to turn into a two-room apartment or want to fence off space for a home office, make sure your management company does not mind. As a general rule, bookshelf walls that don't go all the way to the ceiling are fine.

“Cosy” usually means so small that neither the person nor their clothes fit in it.

"Charming" often replaces the word "dilapidated".

“Unique” implies a strange layout or even worse.

“Quiet” often implies that it offers a view of a ventilation shaft or a brick wall.

Some "bedrooms" are formed illegally. The key feature is the lack of windows.

An outdoor area in need of a “facelift” can be renovated even if you are on a tight budget.

If the ad doesn't mention a doorman or an elevator, it means they don't exist at all. The same goes for laundries.