Manhattan landlords have always been tough. And with vacancy rates so low these days, they are even more specific about who they rent to. Rental prices are at a high, so people are reluctant to move – limiting the number of options new tenants have to choose from. If you are in the market for a rental, chances are you will be competing with many qualified tenants over the same small selection of apartments.
On the Upper West Side, one of Manhattan’s most desired locations, inventory is especially limited. Brownstones and prewar buildings, which dominate the neighborhood, are always in high demand. So if you want to live in one of these properties, you must be aware of the standards and requirements most landlords live by:
- Prospective tenants should be earning a collective income of 40 times the rent. So if you are applying for a $2,500 apartment, you should be earning approximately $100,000 per year (it is usually acceptable for the combined incomes of all lease signers to equal this amount).
- If you plan on using a guarantor, he or she should be earning 80 times the rent. So for a $2,500 apartment, that income should be at or above $200,000. Please also keep in mind that most landlords prefer a guarantor who is from New York – and for some landlords, this is a requirement.
- Credit scores should be at or above 700. If your credit is below 700, most landlords will ask for a partial prepayment of rent or extra security. If your credit is limited because you are international, a prepayment is still requested by the vast majority of landlords. This is even the case for CEO’s of global companies who simply don’t have established credit in the US.
- You should be able to show a substantial amount of money in your bank accounts. At the minimum, you must be able to display enough money to cover the funds due at lease signing – which are typically one month of rent, one month for the security deposit, and the standard New York broker fee of 15% of the annual rent.
- You should be able to show employment stability, and most landlords like to see that their new tenants have been at their jobs for at least six months – sometimes a year.
While these are the general guidelines used by most property owners, please understand that these are guidelines – and landlords do look at the entire picture. But it is important for you to know what is expected ahead of time.
Since apartments rent quickly in this environment of high demand and low supply, it is also imperative that you know what kind of paperwork to have ready. Here are the documents you should have before you even START looking at apartments:
- The first two pages of your most recent tax returns.
- A letter of employment indicating your salary and how long you’ve been at your company. For self-employed tenants, a letter from your accountant will suffice.
- Two recent bank statements.
- Two recent pay stubs.
- Photo identification.
I realize this can be a lot of information to take in all at once, but a prepared renter is a successful renter!