Common NYC Rental Q&A: What paperwork do I need? First born child included?

Just retired. Planning on selling house on Long Island and renting an apartment in Manhattan. In this case, what will the landlord require of me?

This question I received more often than any other when I worked as a salesperson and currently is the most submitted question on HowToRentInNYC.com. The following is what I suggest to have with you before you begin your apartment search in terms of paperwork and money.

I have worked with clients that made $30,000 and I have worked with client’s guarantors who made millions. The paperwork is generally the same and the reaction is always of trepidation and outrage. I know this will not assuage most of your fears of handing such vital financial information over, but know you are not alone and that your landlord and or your agent are legally responsible to keep your information confidential.

PAPERWORK:

1. Tax return (usually only the first two pages from previous year)
2. Employment letter. The letter must state length of employment and annual salary.
3. Pay stubs (typically 1-2)
4. Bank statement (typically 2)
5. A clear photocopy of your license.
6. A recommendation from your last landlord, although most prospective landlords will take your old landlord’s phone number and check that way.
7. Credit check. I recommend you running a credit check on yourself before you begin your search to see where you stand. You will 99% of the time have to pay for an additional credit check because the landlord and management company will want to run one themselves. You will have to supply your social security number and they will see your personal credit history.

All of this information is needed for the landlord to make an informed decision on who they should let rent in their building. Smaller landlords could be more flexible on what you supply but the bigger management companies do not deviate much from the list above.

If you make less than the standard 40-50 times the rent, you will most likely need a guarantor. If you need a guarantor then you must obtain all listed documents for them as well as yourself. However, if you have a guarantor, the landlord will not be as strict on obtaining your information, since your guarantor becomes the one responsible if you do not pay rent. This is common for students or new hires that don’t have a tax return, employment letter or pay stubs.

MONIES:

You should have access to a certified or bank check the first day you begin your search. Apartments can be found and rented in less than a few hours and having the funds available makes all the difference between you and another potential candidate obtaining the apartment. If you have a budget, err on the higher end. Let’s say your budget for your one bedroom apartment is between $2500-$3500, you should assume you are paying for a $3500.00 apartment. You should have at your local bank:

1. One month rent: $3500.00
2. One month security: $3500.00
3. 15% Broker’s fee (if you have a broker): $3500 x 12months = $42,000 x .15%= $6,300

Grand Total: $13,300

If you have questionable credit or if you have a guarantor, a landlord might require you to provide an additional months rent on top of what I listed above. Finding an apartment in NYC is a time-consuming, expensive and draining process. But living in a 450-square-foot, pre-war, beautiful studio in the West Village? Hopefully priceless!

For more info: info@howtorentinnyc.com, www.HowToRentInNYC.com

Why you should use a small moving company and not the faceless corporations

Moving in New York City is a delicate, annoying, painful and expensive process. The large companies have popped up like crazy over the years with random large men entering your living room and handling your fragiles - well not so fragiley. I had the good fortune of having a company recommended to me that I am now recommending to you. They are reasonable, personable and make the horrid experience of moving a downright not-so-bad day. I interviewed Lenny Sass from Rainbow Movers about what it is like to move in NYC today.

Q :How have you managed to stay successful as a small moving company?

A: The key for us has been building on and maintaining relationships.

Business training would have been helpful, but I had none, so learning how to do my job was (and is) a work in progress. With my wife answering the phones and me on the truck with friends, we all learned from experience, from each other, and from like-minded friends we made in the business. Our then 4 year old daughter named the company. She liked rainbows. We are still married, and we now have many decade-long employees, long time suppliers and service people. We have also built relationships with our customers. Many of them have used us many times, as have their now adult children, who have had children and are themselves using us for the second or third time. Those relationships are built on trust, and I like to think the trust is contagious and attractive.

Q: What the average move in the city cost now-a-days?

There really is no such thing as average in New York. That's what makes it interesting and fun. Simply put, the cost of a move depends on the man/hours it will take to do it, and the cost of the materials that will be used. The contents of a studio apartment moving from one elevator building to another, will be moved faster than a two bedroom apartment going from 3 flights to 2 flights; and in order to not shorten the lifespan of the movers, we would want more men to be working in that case. So, depending on how much stuff there is to be moved, what the access is like at the various locations, we will determine a sensible plan. Most people would like the job to go as quickly as possible. We agree.

Q: What separates your business from the large companies that keep popping up?

A: We have a history of giving more personal service, more personal attention to our customers. People call us expecting to speak to the people they talked to when they last moved, and might request the same movers. We and our customers find comfort in that familiarity, and the ease of doing our work professionally, in an already established atmosphere of trust.

Q: What is the difference now in the moving experience from say 30 years ago when you first started?

A: For our customers and for us, there is a big increase in paperwork. Buildings are much more demanding in qualifying residents. Costs to purchase or rent have increased dramatically. Issues related to insurance filings, costs, and procedures are much more involved. Many more moves take us out of Manhattan to the other boroughs (hooray Brooklyn!) and surrounding suburbs. For us too, the regulations have become more time consuming and costly to satisfy. Taxes, and especially parking tickets, have become a burdensome cost of doing business.

Q: What advice can you give people moving to the city?

A: Enjoy it and enjoy each other! There is so much to offer, a lot of it for free or low cost. Free concerts happen all summer. Check out what's happening at the colleges. Check out neighborhood papers, links to neighborhood associations that tell of the city happenings, city people. Walk around the neighborhoods. Check out the jazz clubs. Watch the sun rise.

Q: How much longer do you think Rainbow Movers will keep going?

We'll keep doing it till furniture is digitized. I'll try to find someone of like mind to take over when I want to stop, but for now running Rainbow Movers remains rewarding and challenging.

For more info:info@howtorentinnyc.com, www.RainbowMoversny.com,

Rent's going up for NYC stabilized apartments

A burst of articles came onto the scene today about how rent stabilized apartments will be going up $30 for one year leases and $60 for two year leases or 3% / 6% whichever is higher. Read below for more information.

Rental Going up for Stabilized Apartments: http://www.wnyc.org/news/articles/135066

By Ilya Marritz

NEW YORK, NY June 24, 2009 —Rents may be falling for unregulated apartments, but they're going up on a million rent-regulated apartments in New York City. The Rent Guidelines Board approved a three-percent increase on one-year leases, and a six-percent increase on two-year leases.

Landlord Arnold Fine who attended last night's board meeting says the cost of insurance and oil is driving his costs sky-high.

FINE: Every year since 2001, I am making less and less money on the building even though the rents go up. But my expenses go up faster than my rents.

REPORTER: Fine predicts that the six-family building he owns in Kensington, Brooklyn will start losing money in about ten years.

Protest at Rent Guidelines Board Meeting http://nyc.indymedia.org/en/2009/06/106080.shtml

The associated press released today that rent stabilized apartments will be going up 3% on one year leases and 6% on two year leases. Despite protesters calling for a rent freeze, the New York City Rent Guidelines Board voted to raise rents for about one million rent-stabilized apartments.

For more info: info@howtorentinnyc.com, www.HowToRentInNYC.com