Renter

Management companies and landlords throughout New York City require a comprehensive list of documents in order to process a prospective renter's application. Due to the fast paced rental market in Manhattan, prospective tenants are strongly urged to assemble these documents as quickly as possible in order to ensure their ability to procure a specific apartment.

The following is a list of paperwork which is required by many landlords in New York City:

• A letter of employment stating position, length of employment and gross annual income which should be placed on your company's letterhead. If you are self employed, a letter from a CPA. If you are just starting a new position, make sure you have a signed offer or acceptance letter.
• A copy of your most recent pay stubs.
• A copy of your most recent tax returns and/or W-2 forms. Make sure you provide both if you are self employed or if you are basing your income on several different sources of income.
• A copy of a valid driver's license or passport.
• A copy of your most recent checking and/or savings bank statements. Bank account numbers are often required on application forms; have them ready just in case you need them.
• A letter of reference from your current landlord. This can always help in the process and is often required. If you are unable to get a letter, have the name, address and phone numbers of your landlord ready.
• Certified checks made payable to the management company for rent and security deposit.

How Much Rent Can I Afford?

As a guideline in New York City, you can expect to spend approximately 25% of your gross annual income on rent. If you earn $80,000 per year, plan to spend $20,000 in rent.

What Do Landlords Commonly Require?

The basic requirement is that you annually earn 40 to 50 times the amount of the monthly rent, in addition to having good credit rating.

Credit Reports

Credit reports are always run on every applicant and guarantor. The prices of credit reports/application fees range from $25-$100 depending on the management. Unfortunately credit reports obtained on your own are not accepted. A major part of the approval process is based on your credit report. So what is bad? A few old late payments are usually ok. A high revolving balance is not good. Past due payments that are still outstanding are bad. Delinquencies and collections are very bad. A public record (your day in court) is bad and a Landlord-Tenant record is the worst! If you think your credit is not good; it probably isn't. Be sure to advise your agent of this. Doing so will allow your agent to properly prepare you for the process. Different landlords have different ways of dealing with "credit issues"…Some will allow you to increase the security deposit or to use a guarantor. Others may reject the application completely. We will guide you in a way that will save you time, money and a lot of frustration.

What Is a Guarantor?

A guarantor, also called a co-signor, is someone who is willing to guarantee your lease. The guarantor is responsible for all terms of your lease and guaranties not only your share of the rent but the entire ease f in hare situation.

Do I Need a Guarantor?

If you do not meet the financial or credit requirements, a guarantor might be your solution. Students or young individuals who do not meet the income requirements will usually need a guarantor. When bad credit is the reason, allowing a guarantor will depend on how bad the credit is and on how strict the management is. Sometimes a combination of a guarantor and extra security is needed. If you think you might need a guarantor please advise your agent of this so that together you can most efficiently prepare yourself going forward.

Who Can Be a Guarantor?

A guarantor does not have to be a relative. Many landlords require the guarantor to live in the Tri-State area; New York, New Jersey or Connecticut. Try to prepare your potential guarantor by speaking with them and advising them of what they will be asked for. You might have to act quickly and their cooperation may be critical for your approval. A guarantor needs to fill out an application form and provide the required documents. The requirements are usually good credit and double the income requirements of an applicant. If an applicant is required to show an annual income of 40-50 times the monthly rent, a guarantor is required to show annual income of 80-100 times the monthly rent. The documents required are similar though usually all that is needed is proof of income (usually by providing tax returns) and a credit report. Guarantors usually do not have to be present at the lease signing.