Mistakes to Avoid as a First-Time Renter in NYC


Mistakes to Avoid as a First-Time Renter in NYC

Renting in New York City can be a difficult task. There are hundreds of scams that can be easy to fall into if you'ren't aware of what to look for, and many landlords who disregard tenant protection laws. In order to help ensure you secure a rental unit and remain protected under the law, you must know how to avoid getting yourself into a sticky situation. This is especially true now, as renters do not have the upper hand in today’s market.

The first step in avoiding a tough situation is recognizing who the market is favoring. Currently, it favors landlords. With an incredibly high demand for rental units, rent prices are increasing to an all time high; in fact, the average rent for an apartment in Manhattan recently hit $5,000. In this kind of market, finding an apartment involves compromise.

Most landlords have very strict income and credit requirements, and if you can't meet them, you have to know how to work around them. The best way to prepare yourself is by doing research on the area you want to live in and keep realistic expectations.

Also be sure that the apartment meets your needs before applying. This means that you have confirmed with the landlord that having roommates or a pet is allowed, if that is what you're planning to do.

Here are some mistakes to avoid to help you secure an apartment in New York City:

1. Missing the Right Paperwork

Another way to avoid making a mistake is by being as prepared as possible. If you can, be sure to bring along all the necessary documents to apply for an apartment when you go see it. Additionally, ensure that the apartments you're viewing are both in your budget and you meet the criteria to be approved for it. This will help narrow your search and avoid you wasting time looking at apartments that you can't afford.

There will likely be numerous other candidates with the same qualifications as you, so you want to be as prepared as possible. If you want to act quickly, you can't afford to be missing paperwork, especially in today’s market where rental units in New York City are leased nearly as soon as they are listed.

While the necessary paperwork may vary depending on the landlord, here is a list of some of the most standard documents you're expected to submit:

  • A photo of your government issued photo ID

  • Letter of employment

  • Three most recent bank statements and pay stubs

  • Application fee

  • Two most recent tax returns

  • Reference letter from previous landlord (if possible)

  • Security deposit

When it comes to funds such as the application fee and security deposit, you want to be sure you have these funds available as a certified check, money order, or online card payment. Personal checks aren't allowed, and you do not want to find yourself losing an apartment because you were unable to provide the necessary funds. This leads us to our second point:

2. Having Insufficient Income

Qualifying for a rental unit in New York City can be more difficult than renting anywhere else in the U.S. While landlord tenant laws exist to protect you, they may also make it harder to get approved for a rental. This is because landlords tend to have very strict income requirements, requiring that you earn an annual salary of at least 40 to 50 times the monthly rent.

Unfortunately, if you do not meet this requirement, it's much more difficult for landlords to make an exception. In the past, landlords could legally ask renters to pay the last first and last month’s rent, as well as the security deposit. However, this was outlawed in 2019, and landlords are now only legally allowed to ask for up to one month’s rent as a security deposit, which means they have no way of gaining a sense of security if you fall short to their income requirements.

Fortunately, if you do not meet the income requirements, you still have other options. One option can be finding a roommate. If you intend on living with one or more persons, you'll still have to meet the income requirement, however it will be based on your combined incomes rather than yours alone.

If you prefer to live alone, your best chance is to find a guarantor. A personal guarantor must make at least 80 times the monthly rent. This is because it's expected that guarantors can cover the cost of both your housing and theirs. You may also be able to secure an institutional guarantor, which may charge a fee, but can be vital in securing an apartment.

3. Having No Credit History

Building your credit's an important step for many aspects of your life, including securing an apartment. However, it can be difficult to build your credit if you're a student or are looking to move to New York City from overseas. Thankfully, having no credit's much better than having bad credit, as long as you can provide your landlord with a reason as to why.

If you don’t have a credit history, you may be able to find a landlord that is lenient and is willing to look past not having a credit history as long as you meet income requirements, for example. However, if this is not the case, having a guarantor can help in this situation as well.

4. Having Unrealistic Expectations

When renting in New York City, you'll often find yourself paying much more and getting much less. Renters are often disappointed by the difference between what they earn and what they are able to qualify for. This is also an easy way to fall for a scam: you might find a perfect 900-square-foot apartment with a terrace and a door man in the West Village for $3,000 and bite on it. Unfortunately, apartments like this do not exist at that price in the West Village, and you’re likely going to find yourself getting scammed.

You can get an idea of what you'll be able to afford by looking on trusted listing sites such as StreetEasy or Zillow. This way, you won’t find yourself holding out for the perfect apartment and missing out on many opportunities. As a rule of thumb, you want to try to find an apartment that will meet your top three needs. This will set realistic expectations and help ensure you do not lose a quality apartment because you're waiting for something that will never come.

Having Trouble with Your Landlord? Turn to Outerbridge Law

NYC is a tough place to rent, especially as a first-time renter. It’s no simple task to find an affordable place, especially when you have to navigate countless scams and traps. While it’s common for renters, especially first-time renters, to be taken advantage of, these tactics aren’t legal. If your rights as a renter are being violated, don’t stand for it. Contact the team at Outerbridge Law to schedule an initial consultation and see if you have a case.