Written By Twon Mai


INCOME QUALIFICATIONS

To submit a strong application for an apartment, many landlords in Manhattan usually look for the following:

  • An annual income of 40x - 50x the gross rent price

  • Good to Excellent credit

  • Enough cash in the bank to pay the rent (in case you lose your job)

  • High cash flow-to-debt ratio

If you don't meet the requirements above on your own, you can apply for an apartment with a roommate and/or go through the following:

  • Personal guarantor(s) with an annual income of 75x - 85x the gross rent price

  • A third-party guarantor company such as: 1) The Guarantors (theguarantors.com) 2) Insurent 3) Rhino

If you are using a New York State voucher, you are qualified if the apartment meets the terms of your voucher.

UPFRONT COSTS

$20 Application Fee: The standard application fee in New York is $20 per applicant, which covers the credit and background check. After submitting your application, you will have at least 24 hours to submit your financial documents. 

Security Deposit: Be ready to put down a Security Deposit, which usually equals the price of the gross rent. Some landlords will offer a reduced security deposit for applicants with excellent credit. 

First Month’s Rent: You will be required to pay the First Month’s Rent with your Security deposit. Be sure to provide separate certified checks as it is illegal for the landlord to commingle the Security Deposit and Rent. 

Certificate of Insurance (COI): Upon moving into your new home, you may be required to show your Certificate of Insurance. The price of this insurance will depend on the insurance provider that you choose (e.g. Lemonade Insurance).

Bond (if applicable): A third-party guarantor company will charge a fee to be your guarantor. The cost could be equal to one month's rent.

Broker Fee: Going through a full-service real estate agent in Manhattan will be 15% of the annual rent price. 

BUILDING YOUR APPLICATION

To increase your chances of securing one of your top choice apartments in Manhattan, it is best practice to have your documents ready to submit in advance. The Manhattan real estate market is immensely competitive. If there are multiple people wanting to apply to your dream home, you want to be sure that your application is the first one that gets approved. 

Here is a breakdown of what you'll need to have a proper application: 

Permanent U.S. Residents:

  • Government Issued Photo ID 

  • Employment or CPA Letter 

  • 2 Recent Bank Statements

  • 2 Recent Pay Stubs

  • 2 Recent Tax Returns (First 2 Pages)

  • Landlord Reference Letter or Proof of Good Rent Payment History (if attainable)

  • Pet Photo (if applicable)

  • Pet Documents (if applicable)

Temporary U.S. Residents: 

  • U.S. Visa

  • H1B1 or Employment Authorization Document (EAD) Card 

  • Employment or CPA Letter 

  • 2 Recent U.S. Bank Statements (or proof of new U.S. Bank Account)

  • 2 Recent U.S. Pay Stubs (if attainable)

  • 2 Recent U.S. Tax Returns (First 2 Pages - if attainable)

  • Pet Photo (if applicable)

  • Pet Documents (if applicable)

  • (May need to go through a personal U.S. based guarantor or have a bond from a third-party guarantor.)

Temporary U.S. Residents from Canada:

  • Canadian Passport

  • Employment or CPA Letter 

  • 2 Recent U.S. Bank Statements (or proof of new U.S. Bank Account)

  • 2 Recent U.S. Pay Stubs (if attainable)

  • 2 Recent U.S. Tax Returns (First 2 Pages - if attainable)

  • Pet Photo (if applicable)

  • Pet Documents (if applicable)

  • (May need to go through a personal U.S. based guarantor or have a bond from a third-party guarantor.)

Permanent U.S. Resident Students: 

  • Government Issued Photo ID

  • School Acceptance Letter

  • Current Class Schedule (and/or Proof of Enrollment)

  • 2 Recent Bank Statements

  • Pet Photo (if applicable)

  • Pet Documents (if applicable)

  • (May need to go through a personal U.S. based guarantor or have a bond from a third-party guarantor.)

Temporary U.S. Resident Students:

  • U.S. Visa and/or International Passport

  • 1-20 (all 3 pages)

  • School Acceptance Letter

  • Current Class Schedule (and/or Proof of Enrollment)

  • 2 Recent U.S. Bank Statements (or proof of new U.S. Bank Account)

  • Pet Photo (if applicable)

  • Pet Documents (if applicable)

  • (May need to go through a personal U.S. based guarantor or have a bond from a third-party guarantor.)


Residents with Vouchers: Simply submit the paperwork given to you from New York State.

THE TIMELINE

There are 3 main types of apartment buildings that may pique your interest during your home search:

  • Rental Buildings

  • Condos

  • Co-ops

Rental Buildings in NYC usually have faster approvals and are owned by landlord corporations.

Condos and Co-op apartments in NYC are usually owned by an individual. However, the board members of the building will need to approve your application. The process of going through a board can take 45 to 60 days from the initial date of submitting your application. It will also require more of your financial information to be disclosed as you will need to submit a board package. As your advocate, your real estate agent will diligently build your board package, proofread it, ensure all your information is presented accurately, and submit it to the board members on your behalf. Applicants with vouchers may need to go through a lengthier process.

Twon Mai https://twonmai.com
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