The New York Times, in the article referenced below, cites a novel trend in the Big Apple rental property market: a growing influx of New Yorkers into Manhattan from the traditionally lower priced apartment markets of Brooklyn, Hoboken, and other further commute residential areas.
The recession came to the New York rental market later than some other US cities, but has resulted in a modest reduction in rental rates. Perhaps just as important, renters are finding a newfound flexibility on the part of owners and landlords. Some owners are waiving onerous income requirements, decreasing security deposits, throwing in an extra month on an annual lease, sweetening deals with freebies such as gym memberships, or (gasp!) paying that unique NY renter bane, the broker fee!
Leaving Brooklyn or Hoboken for a Manhattan apartment often requires giving up space and amenities in exchange for a shorter commute. For many young adults, especially those new to the city and without school age children, this rental market may present a better opportunity to live in Manhattan than any time in recent decades.
"What you need to know before you rent" by Elizabeth A. Harris Real Estate Section New York Times August 24 2008 Summary. Although this article is geared toward the New York rental property market, there are some useful insights that are widely applicable. The New York market is somewhat unique in that a good portion of the rental property inventory is rent controlled. Rent controlled apartments are a valuable commodity for the renter, and thus tend to turn over less frequently. Finding a rent controlled apartment to rent is also less straightforward, as availability is frequently spread by word of mouth to friends or acquaintances. As with any apartment or rental property search, it is important to do your research first and thoroughly. Know how much you can spend per month before you look. Draw up a budget ahead of time. Get your references in order, recent bank statements, employment stubs and copies of IRS returns. Be prepared for a credit check. The New York rental market sets a high bar for income relative to the monthly rental. Many first time apartment renters will need someone to guarantee the lease and the guarantor may need to prove income of up to 80 times the monthly rent. It is helpful to know what responsibilities apply to you and to the landlord. When signing the lease, ask about subletting rules , whether the apartment has been painted, who is responsible for the various utilities etc. Because of the complexity and variety of rental property in NYC, many renters choose to find their apartment through a broker. The broker charges a fee, approximately 15% of the first year's rent, but the broker has access to a larger number of rental units than you may be able to find for yourself. The broker should also help you navigate the complexities of finalizing the deal.
The information on RentalProperties.com is intended for informational purposes and not guaranteed. Please consult with an attorney or your own professional advisor regarding your specific situation.
