When to start looking
You should start your search around 30-45 days before your ideal move-in date; however, most landlords will want prospective tenants to start their leases for vacant units within two weeks of the application date. That being said, the more you look, the more knowledgeable you will become, enabling you to make quick decisions in the moment.
What to Prepare
Apartments rent quickly in New York City, and having your documents in order will help you act quickly when you’ve found the right place. Make sure you have the following at the ready before you start looking:
• Letter of employment verification: proof of employment letter printed on company letterhead and signed by a company representative stating position, start date, length of employment, salary, and opportunities for bonuses. If self-employed, a CPA letter stating annual income and source of income for current tax year and previous tax year.
• Last two consecutive pay stubs
• Last two years’ tax returns
• Last two years’ W-2s
• Two most recent bank statements for all accounts: these statements should be recent, consecutive and show your current name and address.
• Photo ID: must be government-issued and not expired, including a driver’s license or passport.
• Landlord application: provided by the landlord’s representative, this form usually allows the landlord’s representative or your Compass agent to run a credit check on you.
• The tenant can also provide you their own credit/background check so long as it’s not more than 30 days old, however a landlord can still request their own.
Financial Requirements
Landlords typically require tenants’ combined annual salaries to equal or exceed 40x–60x the monthly rent. If you do not meet this requirement, many landlords accept guarantors, a third party who is willing to guarantee the entire rent and other provisions in the lease in case the tenants are unable to fulfill their obligation. Guarantors need to provide the same application support documents as you do. It is usually expected that guarantors are US citizens and earn an annual salary of at least 80x the monthly rent.
Rental Apartments
Allow 24-48 hours for the landlord to review your applications. If you are approved, lease signings typically occur within the next 24 to 48 hours at either the broker or management company’s office.
Condos
Applications are a two-step process; approval from both the apartment owner and the condo board must be granted. The entire condo application process, from initial application to final board approval, can take anywhere from 2-4 weeks and, in some cases, may require an in-person interview. Rent, security, and broker commission are paid upfront, and returned if the applicant is rejected.
Co-ops
Applications take a minimum of 30 days, at times longer, from the submission of the completed package. Rent, security, and broker commission are paid upfront, and returned if the applicant is rejected..
Once you are approved, you must secure the apartment by signing the lease and paying the applicable fees. Payment at least-signing, in the form of a certified check or money order is typical.
No-Fee Buildings
• Only a small amount of the New York City market is made up of no-fee apartments. In this case, the landlord pays the broker commission instead of the renter.
• If a tenant is being represented by a broker and it is a no-fee listing, the broker can collect their own fee directly from the tenant (these are called CYOF, or collect your own fee listings).
Rental Apartments
• $20 application/processing fee
• First month’s rent
• Security deposit equal to 1 months rent
• Broker and/or co-broker’s fee
Condos and Co-ops
These fees are generally higher than the fees for a rental building. In addition to the rent, security and broker fee amounts stated above, condo and co-ops fees may include:
• Move-in fee of $1000
(This is often refundable after move-in)
• Application fee of $250 - 300
• Managing agent fee of $250 - 400
International Applicants
Most landlords do not accept credit reports or tax documents from outside the US, so international applicants may need to provide a US guarantor.
Pets
Pet policy varies by building. Every building has different rules when it comes to owning a pet so communicating specifics about your pet, such as weight and breed, to your Compass agent will help you to find the buildings that best fit you and your pet’s needs. New York’s recent rent reforms prohibit landlords from charging more than one month’s rent for a security deposit, which eliminates additional security deposits if you have a pet. They require landlords to accept, and prevent them from charging fees for service animals and ESA.
Roommates
Landlords typically require all roommates and guarantors to fill out a full application, submit personal documentation, and sign the lease.
COMPASS
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Brooklyn, New York 11249
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