Tenants Guide

Tenants are required to have an annual income equal to 45 to 50 times the monthly rent.  For example, if the monthly rent is $2,000 the applicant must earn no less then $90,000 to $100,000 (45 x $2,000).  Applicant should have a stable employment history and a good credit rating.  If an applicant does not meet these requirements, a guarantor or extra security may be used in lieu of them.

Guarantors are generally required to go through the same application process as the tenant.  The Guarantor should earn 80 to 100 times the monthly rent and have good credit.  A guarantor is required to submit Federal Tax returns as proof of income.  A guarantor guarantees the rent for the entire lease term. Some landlords require guarantors to live in the tri-state area, (New York, New Jersey, and Connecticut)

Typically one month’s rent is the standard deposit and one month’s security, required at time of lease signing.   Additional security may be required under certain circumstances.  Landlord acceptable forms of payment are certified checks or money orders.  Personal checks are not accepted.

Additional information needed for qualification

Most landlords and management companies require copies of the renter’s most recent bank statement, checking, savings, stock account or any other financial institution.  Most rent applications require the renter’s bank account information.  A letter of employment on the company’s letterhead, stating his or her position, length of employment and annual income.  Most landlords required the renter to submit his or her 3 most recent pay stubs.  Some landlords require renter’s most recent 1040 Federal Tax return.

For a rental building, application fees vary from $50-$100 dollars (per application).  For a Co-op or a Condo, the fees can range from $200 to $1000.  

Brokerage Fees

The standard brokerage fee in Manhattan is 15 percent of the annual rent and is generally due at the time of lease signing.  You are only responsible for this fee if you secure an apartment through that broker.  Fees are always made payable to the brokerage firm.  The tenant is asked to sign an agreement that simply states that you agree to pay a fee to the broker, if you secure a lease on a particular property.