Finding the right apartment in New York City can be a fast-paced and tiring process. That's why our Rental Guide is here to help. It provides answers to your questions and essential information to make your search easier. Check out the sections on Standard Fund Requirements, General Approval Requirements, and Frequently Asked Questions for everything you need to know.

Standard Fund Requirements

The Budget

It's crucial to have a budget in mind when looking for an apartment or rental property. Factors like size, location, condition, and amenities all influence the price. Setting a budget early helps you know what you can afford. A general guideline is that your annual income should be at least 40 times the monthly rent to comfortably afford it. Landlords often require 80 times the monthly rent if you use a guarantor. Please use below table as a general guideline.

Example:

Rachel and Sara want to rent an apartment in East Village. Rachel earns $100,000 and Sara earns $60,000. Together, they can afford a two bedroom apartment costing $4,000/month since their combined income is $100,000 + $60,000 = $160,000, which is 40X of $4,000.

Michael is joining New York University as a freshman. He wants to rent a studio apartment in Murry Hill costing $2,500. His father is a lawyer in Dallas, Texas earning $250,000/year. Michael can apply for an apartment using his father as the guarantor, who earns more than 80X of monthly cost of the apartment (80* $2,500 = $200,000).

Liquid Funds

The tenants generally provide 1st month's rent upfront, 1 month's rent as the security deposit and 1 month of broker fees. So they should have 3 months worth of funds readily available to start the application process.

Example:

Rachel and Sara would need $4,000 * 3 = $12,000 in their bank accounts. Rachael's last month ending checking Bank statement balance was $20,000, while Sara had $12,000 in her checking bank account as of the last month. Together they have enough liquid funds ($20,000 + $12,000 = $32,000).

Michael's father's brokerage account had $150,000 of stocks and $50,000 in his checking account as of the last month. This amount of fund ($150,000 + $50,000 = $200,000) is more than enough to satisfy 3 times of rent ($2,500 * 3 = $7,500) as the liquid funds.

General Approval Requirements

The approval requirements differ depending on the landlord/management company. In addition to the fund requirements noted earlier, below are additional factors that play a role in approval in most instances.

The Credit History

The Tenants need to have a good credit history. A major component of the approval process is based on the credit report. A poor credit report typically stems from various factors. Occasional late payments, especially if they're not recent, might not severely impact it. However, maintaining high revolving balances on credit accounts can signal financial instability and is generally unfavorable. Outstanding past due payments contribute negatively, as do delinquencies and collections, which indicate a history of non-payment. Public records, such as legal actions or court judgments, tarnish a credit report. Additionally, a problematic Landlord-Tenant record can significantly weigh down creditworthiness, signaling potential issues with fulfilling financial obligations. Overall, a combination of these factors can collectively contribute to a credit report being deemed as unfavorable.

If you're worried about your credit report not looking great, let your CENTURY 21 Scope Realty Agent know. They can help you get ready for applying for a rental. The landlords and management companies handle credit issues differently. Some might let you put down a bigger security deposit, while others might ask for someone to guarantee your payments. And unfortunately, some might turn down your application altogether. Your agent can guide you through the options and help you navigate the process.

Employment/Pay Stub

The Tenants should get a Letter of Employment on their company's letterhead, with the following: position, length of employment, and annual income. The copies of tenants 3 most recent pay stubs are usually required. In most cases landlords and management companies will require copies of a renters' 3 most recent bank statements from a checking account showing direct deposit of consistent wages/salaries.

In majority of cases an offer or an acceptance letter for a new position is not sufficient to show employment.

Other Requirements

Tax Returns: Certain landlords and management companies might ask for a copy of your latest Federal Tax Return (1040) when you're applying to rent a place. It's a good idea to keep your tax return handy in case they ask for it during the application process. This way, you'll be prepared if they need it.

Self Employed Renters: If you earn money from various sources, you'll need to provide tax returns and a letter from a CPA explaining your business and expected future income. Business owners seeking to rent typically must submit a tax return as part of the application process.

Rental History: To demonstrate a good rental history, tenants should provide a letter of reference from their previous landlord. This letter is crucial for landlords and management companies reviewing rental applications. 

Social Security Number (SSN): Tenants must have a Social Security Number (SSN). If you don't have one, you'll need a guarantor to co-sign your lease. Students also typically need a guarantor to co-sign. Some buildings don't accept students, and this rule is allowed by law in New York State, meaning it can't be challenged in court.

A guarantor or co-signer is someone who promises to pay the full rent if the tenant can't. They cover the lease term and renewals if needed. Any qualified person can be a guarantor as long as they agree. The qualifications are similar to what applicants need, so they'll need to provide similar documents.

Frequently Asked Questions (FAQ)

What is a "no fees" apartment, and how does it benefit me? Are all apartments "no fees" in New York City?

A "no fees" apartment means that you, as the tenant, are not responsible for paying any brokerage fees or commissions typically associated with renting an apartment in New York City. This means significant savings for you, as you won't have to worry about additional upfront costs beyond your security deposit and first month's rent.

No, only some apartments are "no fees".

What are the basic requirements for renting an apartment in New York City?

The requirements for renting an apartment in New York City typically include proof of income, such as pay stubs or employment verification, a credit check, and references from previous landlords. Landlords may also require a security deposit, which is usually equivalent to one month's rent, as well as the first month's rent upfront.

How can I ensure that I find a reputable and trustworthy brokerage to work with?

Look for a brokerage with a proven track record of excellence and customer satisfaction. Read reviews from past clients, ask for referrals from friends or colleagues, and research the brokerage's credentials and affiliations. Choose a brokerage that prioritizes transparency, honesty, and integrity in their dealings with tenants.

CENTURY 21 Scope Realty stands out for its unparalleled commitment to excellence, extensive market expertise, and dedication to serving the needs of tenants like you. As part of the globally recognized CENTURY 21 network, we offer access to a vast inventory of quality rental properties, backed by the resources and support of a trusted brand with a proven track record of success. With our "no fees" model, personalized service, and unwavering commitment to client satisfaction, choosing CENTURY 21 Scope Realty for your apartment search is a decision you can make with confidence. Let us help you find the perfect place to call home in the heart of New York City. 

What neighborhoods do you specialize in, and can you help me find an apartment in my preferred location?

We specialize in rental properties throughout New York City, including Manhattan, Brooklyn, Queens, and beyond. Whether you're looking for a trendy loft in Williamsburg, a luxury high-rise in Midtown Manhattan, or a cozy brownstone in the West Village, our team can help you find the perfect apartment to suit your lifestyle and preferences.

Do you offer assistance with the rental application process?

Yes, we provide full support and guidance throughout the rental application process. Our experienced agents will help you complete the necessary paperwork, gather required documentation, and navigate any potential challenges or obstacles that may arise. We're committed to making the rental process as smooth and seamless as possible for our tenants.

What amenities and features are available in the apartments you represent?

We offer a diverse selection of apartments with a wide range of amenities and features to meet your needs and preferences. Whether you're looking for a doorman building, a pet-friendly apartment, an in-unit washer and dryer, or stunning views of the city skyline, we have options to suit every lifestyle and budget.

How do I schedule a viewing or tour of an apartment I'm interested in?

To schedule a viewing or tour of an apartment, simply contact our office or reach out to one of our agents directly. We'll work with you to arrange a convenient time for you to visit the property and explore its features firsthand. Our team is here to answer any questions you may have and assist you every step of the way.

What sets your brokerage apart from others in the industry?

At CENTURY 21 Scope Realty, we pride ourselves on our commitment to excellence, integrity, and customer satisfaction. Our team of dedicated professionals goes above and beyond to ensure that our tenants find their ideal apartment and have a positive rental experience from start to finish. With our "no fees" model, transparent approach, and personalized service, we're confident that you'll be glad you chose to work with us.

How do I get started with finding my dream apartment through your brokerage?

Getting started is easy. Simply reach out to us to schedule a consultation or discuss your apartment search preferences. We'll take the time to understand your needs, preferences, and budget, and then tailor our search to match your criteria. Let us help you find the perfect place to call home in the vibrant and dynamic city of New York.