Explained: NYC Apartment Application Fees and Other Rental Fees

When renting in New York City, there are a number of costs just to even get an apartment. Unfortunately, these costs can add up very quickly and become difficult to handle. For this reason, you want to ensure you are budgeting properly to account for these costs. 

The fees you will encounter will vary depending on the type of building you rent in, however are some of the general costs you should budget for: 

1. Broker’s Fee 

The broker’s fee tends to range anywhere from one month’s rent to 12-15 percent of a year’s rent. This cost is usually very hefty, however there are some cases where landlords may agree to cover a fraction, or even better, the whole broker’s fee. 

If you are working with an agent to find a rental unit, it is recommended that you speak to the agent and find out if there are landlords that are paying them to find tenants. If this is the case, and you rent a unit from this landlord, you can deduct the amount the landlord has paid the agent from your broker’s fee. 

Thankfully, this fee is a one time payment. This means once you have covered the costs, you do not have to pay it again when you are renewing your lease. You will, however, have to pay it again if you move into another building. 

2. Apartment Application Fees 

As of 2019, the New York rent laws state that landlords can charge a maximum of $20 for application fees. However, if you provide your landlord with a copy of your current background or credit check, this fee must be waived. 

However, it is likely that you will still find landlord’s who try to overcharge their tenants for application fees. If you are a victim of this, you can file a complaint in order to receive compensation. 

This law, however, does not apply to co-op or condos. This is because the board tends to impose fees on the apartment owner for renting out their apartment. This is because the building is not primarily a rental building, and with these fees typically come higher application fees for you, the renter. However, these fees will not only cover the application, but also the cost of your move, such as the use of the elevator.

3. Rental Insurance 

In some buildings, it is required that all tenants have renter’s insurance. Thankfully, renter’s insurance is not too expensive as it’s typically around $100 to $150 a year. However, it is something that you will have to budget for. 

4. Pet Fees 

Oftentimes, even in a pet friendly apartment building, you will be charged a pet fee in addition to your monthly rent. This fee can range from $50 per animal to $200 per pet each month. Landlords may also charge a one time fee to move in. These fees are to cover the costs of any potential damage your pet may cause to the unit or the building itself. Landlords tend to be more concerned about cats and dogs, meaning if you own a pet that lives in a tank, such as a fish, you may not be charged additional pet fees. 

5. Guarantor Costs 

As the rules regarding security deposits have stricken, it has become increasingly difficult for those with no U.S. credit history or a poor credit history to secure an apartment. This is because in the past, landlords may have chosen to charge the renter a larger security deposit in order to make up for what they lack in credit history. However, since it is now illegal to charge more than one month’s rent as a security deposit, landlords cannot turn to this as an added measurement of security. Landlords will now insist that renters find a guarantor, which is someone who agrees to honor the lease and pay rent if the tenant is unable to. 

If you go down this route and get an institutional guarantor, you will have to pay anywhere from 65 to 85 percent of one month’s rent if you have U.S. credit history, and 100 percent of one month’s rent if you do not. This, unfortunately, can be difficult to manage if you do not budget accordingly. 

6. Move-In Costs 

Large apartment buildings may charge a move-in fee, which is used to cover the use of the elevator when you are bringing in your furniture on your move-in day. This can cost you anywhere from $500 to $1,000. In addition to this, you may also have to pay for movers to help you transport your belongings into your new apartment. These costs can vary.

7. Amenities Fee 

In newer, more luxury properties, you may be expected to pay a separate fee in order to have access to the amenities the building has to offer. This is done in order to keep the base rent more affordable, while still allowing tenants access to amenities, such as a gym, if they desire. While it may seem like a burden, it may also be beneficial if you do not intend on making use of all the amenities the building has as you will not be forced to pay extra fees for amenities you are not using. Amenity fees can be charged monthly or annually, depending on the building.

Make Sure You Budget For These Costs

The cost of signing a lease on an apartment in NYC is a bit more complex than in other cities. Using a broker can make it easier, but be ready to pay for their services. Additionally, be sure to account for fees like amenity fees and guarantor costs when searching for apartments, as a building might exceed your budget when these costs are factored in. 

Ultimately, taking the time to make an accurate budget accounting for all the costs you might encounter while apartment hunting can ensure that when you finally find the right place, you’re ready to apply and be accepted without any costly surprises.