New York City is a bustling place, full of amazing people, places, and sights to explore. For those looking to make their home in the big city, there are some essential steps to follow when looking for an apartment to rent. From the basics of budgeting and credit checks, to complex legal clauses and financial considerations, there’s a lot to understand during the rental process. To help, here’s a comprehensive guide to everything you need to know prior to renting an apartment in New York.
Budgeting
Before you can begin your hunt for an apartment, it’s important to start by defining your budget. Knowing how much you can realistically afford will ensure you don’t get in over your head and take on a lease you can’t manage overtime. When renting in New York, you should expect that your rent will cost around 30% of your total income, but it’s always best to go with a percentage that you feel comfortable affording even if your income changes in the future.
Credit Check
Once you’ve got a good idea of what you can afford, it’s time to prepare for the credit check. Since landlords in New York are legally allowed to view your credit report, it’s important to take the time to review your own credit situation and make sure it’s in good standing. Before starting your rental search, you should know the details of your credit report, which you can always request for free through one of the three major credit reporting bureaus.
Documents and Identification
In addition to your credit report and potential references, there are a few documents and forms of identification you can begin to gather before signing a lease. When renting an apartment in New York, tenants will typically need:
• Valid government-issued photo ID
• Proof of income
• Bank statements
• Renter’s insurance
• Social Security Number
• Signed lease addenda
• References from previous landlords
Finding an Apartment
Now that all your documents are in order, it’s time to begin your search for an apartment. Whether you choose to use a traditional broker or do a self-guided search via websites such as Craigslist or Zillow, you’ll have to decide on the features, location, and general price range that works for you. Once you’ve narrowed down the list of apartments to your top 3 choices, it’s time to reach out to the landlords and make appointments to view the properties.
Inspecting the Property
As you start to visit the properties on your list, it’s important to be aware of a few potential red flags. When visiting apartments, it’s wise to make sure all areas of the property are in proper working order, check for any signs of damage in the bathroom and kitchen, and take note of any underlying issues or problems with the unit or building that may require costly repairs over time.
Lease Addenda
Once you’ve meticulously vetted 3-5 apartments and can confidently decide on a place to call your own, it’s time to move on to the paperwork. When it comes to rental contracts, it’s essential to be aware of any addenda’s that may be tucked away in the small print of your lease. In particular, New York landlords typically require tenants to sign a few addenda’s in addition to the traditional lease such as a Guest Clause, Roommates Clause, or Pet Addendum. It’s important to read through all of these terms and make sure you understand what’s outlined in each one before signing a lease.
Financial Considerations
In addition to understanding the lease addendums, there are a few essential financial considerations to bear in mind when signing a lease. The traditional security deposit cost in New York City ranges from one to two months of rent, depending on the landlord, so tenants should be prepared to have this amount ready when signing a lease. Additionally, keep in mind that you may be required to pay a non-refundable fee for a background check, as well as first and last month’s rent when signing the lease.
Finalizing the Lease
Now that all the paperwork is complete, you’re ready to move in and make your dreams of living in the bustling city of New York a reality. However, before officially signing the lease, it’s important to make sure you meet all the requirements of the lease and double check that all paperwork is complete and in order. Once you’ve verified everything is in order, you can sign and submit the official lease and start your move-in process.
Whether you’re a New Yorker or just looking to explore the city, renting an apartment in New York comes with some essential financial and legal considerations. By taking the time to budget, check your credit report, gather the necessary documents, find an apartment, arrange contract addenda’s, and finalize your lease, you can have the keys to your new place and officially call the Big Apple home.