The Nouveau Native's Guide To Renting In New York City

Priced Out of Manhattan? Not So Fast Good Renters!

2008-07-07T08:20:00.001-04:00

With vacancy rates at less than 1% many renters are feeling the fear and are avoiding Manhattan. For those who have less than stellar credit or would require multiple room mates in order to meet the monthly rent, Manhattan’s isn’t a good bet right now. Your likelihood of landing an apartment is lessened thanks to the economy. But, many potential renters who are “safe bets” for landlords are being scared away unnecessarily.

When the market gets tighter, those potential renters who are considered “marginal” in terms of their credit and ability to meet the rent payments (due to low or instable salaries) face tremendous challenges in getting approved. Think about it from a practical perspective, landlords are in business and that business is to make a profit off of the letting (or renting) of their property. As with any savvy business man or woman, landlords want to contract with the person or couple MOST likely to be able to meet the financial obligations of the rental contract.

When the market tightens and there are fewer availabilities, landlords have the advantage of having more potential renters from which to choose. Of course, any responsible business person will choose the person best equipped to meet the responsibilities. In real estate rental terms, this means the person with the best credit and most stable job with a salary that is comfortably within the rental affordability formula. Does this mean that someone without stellar credit or whose salary is low wouldn’t make a good tenant? Does this mean that people with high paying jobs are always going to be great tenants? Of course not! There are great tenants that scrimp and save and make sure that they always meet their obligations. There are other high flyers that fail to meet obligations. But as a whole, a clean credit report and a salary comfortably within range are the best bets for landlords. And with a tightened market there are more people that fall in that category from which to choose.

If you have a good credit file, a steady job, and a salary that the landlord considers adequate to meet your responsibilities (typically 40X the annual rent), living in Manhattan shouldn’t be out of your reach. Yes it may take a few more applications before you get an approval, but no matter the economy, landlords are looking for “safe bet” tenants.

So, pick up your copy of The Nouveau Native’s No Fee New York 2008 and start contacting landlords that meet your criteria. It is ok to be scared of the Manhattan rental market. But Manhattan is the greatest place on earth so, feel the fear and do it anyway.

Economy Woes for Manhattan Renters

2008-07-03T07:38:00.000-04:00

New York has always been among the priciest rental markets in the country, but this year is forecast to be historical. And not in a good way. The vacancy rate has hovered around the 3% mark for years. But in 2008, the vacancy rate is below 1%, meaning that less than 1% of all rental units are available for rent at any given time. Less rental inventory means more competition for each available unit. To make matters worse, with apartment sales slumping and many people afraid to jump into the sales market, more people than ever are renting. This of course exacerbates the problem.

When inventory is so tight, landlords typically take advantage of the market. The average 1 bedroom, doorman apartment will set you back $2,700.00 a month, that is a $500.00 increase from just five years ago. This increase is forcing many to go further afield to find accommodation. Brooklyn, once the first stop for those priced out of Manhattan is now prohibitively high as well. So renters are forced to look to Queens, Staten Island, New Jersey, Yonkers, and Connecticut for reasonable prices. For many the long commute and inability to live in Manhattan is making a career in NY less than desirable.

Fear of the Bad Old Days in NYC

2008-06-29T08:03:00.002-04:00

Today's New York Post had a real eye opening and thought provoking article that I wanted to share. The article talks about the "Revenge of the Bad Old Days" in New York City, where crime was rampant, graffiti and destruction was common, and people didn't feel safe in their homes.

I first moved to NYC in the closing years of those "bad old days" and completely understand both the desire to forget and the need to remember. I have lived all over the world and can say whole heartedly that in my opinion, New York City is the greatest city in the world. I understand that much of the problem has to do with decreasing police forces, but I urge people to be vigilant.

NYer's are often stereotyped as being self absorbed or as people who don't care about their fellow man. We know that this isn't true. But when punks destroy bus shelters, apartment buildings, and businesses we all suffer, both the loss of our neighborhoods but also our own security. Criminals see a community where graffiti is tolerated and panhandlers are placated as a place where they can rob, rape, assault, sell drugs, and further damage property without fear of being arrested or even reported.

So how do we protect our communities? Here are some ideas:

1. Get involved with (or start) a Neighborhood Watch

2. Report crime, vandalism, and pan handlers to the police. If you don't report it, nothing will be done about it.

3. DO NOT give money to pan handlers. They stay in an area because the spot is financially lucrative. Instead, donate money to organizations that feed, cloth, and provide training to homeless people to get them back on track.

4. Donate time and/or money to New York Cares which provides access to hundreds of events taking place in NYC that benefit the community as a whole.

5. Set a good example. Make sure that your trash gets into the garbage can and clean up after your dog. Often criminals target uncared for blocks first to establish a base of activity.

6. Get involved with one of the community improvement organizations. These organizations sponsor graffiti cleaning, mural painting, garden and park cleaning, and other activities designed to make the neighborhood a cleaner, more friendly place.

We do need the number of police on the streets to increase. But we can't let apathy return us to the "bad old days" of crime and fear.

No Fee Apartments in NYC

2008-06-26T12:58:00.001-04:00

I got an email yesterday from Henni who wanted to know how much money he should spend on securing a no fee apartment. I have discussed the difference between a no fee and a broker fee apartment before, but I thought this would be a good time to explain that a no fee apartment doesn’t mean FREE apartment and that there are costs associated with a no fee rental.

No Fee means No Broker Fee. In other words, if you rent a no fee apartment you are renting an apartment that doesn’t have a broker’s commission attached. Usually there is no broker fee attached because a real estate agent/broker hasn’t assisted you in renting the apartment. However there are some occasions where the owner pays the commission on behalf of the renter as an incentive.

Credit Report Fees: Management companies and landlords run credit checks on each adult on the lease and in some instances, each adult living in the apartment. These fees vary depending on the credit reporting service that they use and on the thoroughness of the report. Some companies simply check your basic credit report for delinquencies and credit scores. Others run a full battery of checks including tenancy court action, employment verification, and even criminal background checks. Management companies have to pay for credit reports whether you end up renting a unit or not, so credit report fees are non-refundable.

Application Fees: This term is sometimes used interchangeably with “credit report fees” but in reality should include both the charges associated with running credit as well as paying for the time that it takes to prepare leases. Application fees are also not refundable.

Holding Deposit: Some landlords require a holding deposit while they run credit checks. A holding deposit is typically between $300 and $500 and is used as an assurance that you are serious about renting the apartment for which you have applied. Since many people put applications on every apartment that they see in an effort to maximize their chances, small landlords who typically stop showing an apartment once an application is accepted, use holding deposits as a security measure to insure that they are only proceeding with someone who is serious.

Holding deposits are typically applied to the actual deposit. So at the lease signing, you would bring a certified check for the first month’s rent and the remainder of the deposit. If your credit comes back and is not acceptable, the landlord will return your holding deposit immediately. If however you are approved and change your mind, holding deposits are non refundable, so make sure that you are serious about the apartment before leaving a holding deposit.

Application fees and credit report checks vary widely, but average between $35 and $75 per adult, for most typical rental buildings. However, fees of $100 to $150 are not unheard of, especially if the management companies run a full background check, which is becoming more common these days. If your unit is very high end or if you are applying for a co-op, fees can be as high as $500. Remember, these fees are non-refundable, so think carefully before you apply.

Tomorrow we will talk about building and unit selection.

Get Out Your Map! - Steps To Finding The Perfect Pad

2008-06-24T10:32:00.000-04:00

One of the most challenging aspects of searching for an apartment is understanding that limiting your search is often more effective than broadening it. This is typically opposite the way that you would look anywhere else, but it is important. Why? Because there are so many apartments available and they move (get rented out) so quickly, that unless you have a firm strategy you will spend your time running all over town instead of looking at apartments that truly fit your requirements.

Ask many apartment seekers what their requirements are or even what constitutes a “perfect” apartment and you will find that many people don’t have a clear idea of what they really want. Landing an apartment that ultimately turns out to lack in some qualities that are important to you will result in disappointment in an otherwise great apartment. Finding your perfect apartment is really a question of determining your priorities and evaluating your lifestyle.

GET OUT YOUR MAP!

Where do you spend most of your time? For the majority of people, most of their time is spent at work or at school. If you work late or have crazy hours, finding an apartment that is either close to work or close to transportation can seem like a real luxury. Few things compound a bad day or a long work day quite like an intolerable commute or long walk from subway stop to front door.

Priority #1 – Walking distance to work or close to direct transportation link.

Once you have selected a few areas that meet priority #1, ask yourself, “How do I REALLY live?” Many people make a mistake in choosing an apartment that they feel will force them to make lifestyle changes. If you are overweight, choosing a top floor walk up will not make you fit. It will only make you hate your apartment and keep you a virtual prisoner. Similarly, if you are planning on getting pregnant, a top floor walk up is also not a great choice. Many people choose an address or a neighborhood because they feel that it will make them appear more successful or trendier. All this really does is creates a situation in which you can’t leave your home without ‘acting.” Your home should be the place where you fit in and are comfortable, not a place where you have to put on a never ending play.

Priority #2 – Apartment and neighborhood that fits “me” as a person.

You have selected the neighborhoods in which to search, weeded out that ultra expensive neighborhood, and determined that you won’t be happy in a walk up that is above the third floor. Now you need to consider your responsibilities? If you have kids and or pets, you need to figure out what areas of your selected neighborhoods will work best for them. Living on a block that has a lot of loud nightclubs and bars, may not be great if you have a baby, small child, or a dog with a nervous disposition. If you enjoy taking your child or dog to play in a park, finding an apartment close to a park will be helpful as well. Do you need to consider proximately to schools or day care?

Priority #3- Neighborhood and apartment that will fit my responsibilities.

Reflecting on these 3 priorities should have helped you to narrow down the neighborhoods and even blocks that will provide you the best options for apartment happiness!

Tomorrow we will look at building selection methods.

Options For Renters - The Nouveau Native's No Fee New York

2008-06-19T08:51:00.000-04:00

Last week we discussed options available to people attempting to find rental housing in New York City. We covered traditional brokers, list services such as RentDirect.com, and online bulletin boards like Craig’s List. Today we are going to discuss The Nouveau Native’s No Fee New York guide book series and how it can be best used to assist renters in finding and renting a no fee apartment.

First, let’s do a quick comparison. Using listings services or online bulletin boards can be a great way to find avoid paying brokerage fees.

But there are downsides. With listing services:
1. You have to rely on the accuracy of whoever types the details into the computer.

2. You have to trust that the listing service or owner of the property has updated the information quickly; otherwise you will waste your time going to apartments that are already rented.

3. You have limited, if any, information about the management company or owner’s credit, financial, and background requirements. This often means that you waste time looking at and applying for apartments for which you don’t meet the application requirements.

4. Listing services generally list apartments that are empty and available today. For people interested in moving in a few weeks or even a few months, listing services can be rather limited since they infrequently list occupied units.

5. Listing companies aren’t free. They range in price from around $10.00 to almost $250.00 depending on the services, popularity, and reputation of the company.

With online bulletin boards:
1. In the old days, when almost all rental advertisement was conducted in newspapers, a broker had to prove that they were licensed by the state prior to placing an ad. In addition, ads were expensive, so brokers concentrated on advertising the units that they actually had to rent. Today, online sites offer free (or very inexpensive) ads to anyone who wants to post. This creates a system in which brokers and listing services list not only apartments that they actually have, but also post “bait and switch” ads and teaser ads in order to get renters to call. This means that there are a lot of ads on bulletin boards that have no relation to available apartments.

2. By the same token, since sites don’t require posters to prove that they are licensed, online bulletin boards are used by unscrupulous types in order to commit crimes such as sublet or rent scams.

3. Updating information is the responsibility of the poster. This often means that information is out dated.

4. In most instances, bulletin board listings are for only for empty units which are available for immediate occupancy. If you are interested in apartments available in a few weeks or months, a bulletin board can have limited results.

5. Generally bulletin board ads don’t list application requirements, which means that you can waste a lot of time looking at apartments for which you can’t qualify.

Looking for an apartment with the help of The Nouveau Native’s No Fee New York eliminates many of the problems listed above as well as removes the requirement to pay any brokers fees. But how can people effectively use the guide to find an apartment?

There are three major benefits to using The Nouveau Native’s No Fee New York to find an apartment.

First and foremost, the guide provides detailed information about the rental process in NYC. For those of you new to NYC or new to renting, the differences between here and anywhere else on the planet can be very confusing. Understanding the process is really an essential component to becoming a renter. In addition to the actually process of finding an apartment, the guide explains the rather complicated rental application procedures and the methods that landlords and management companies use to select an application. No matter how many apartments you apply for, if you don’t meet the landlord’s particular credit, financial, and personal stat requirements, you won’t be able to rent.

Second, The Nouveau Native’s No Fee New York profiles over a hundred Manhattan landlord’s and management companies. These management companies collectively represent over 10,000 available units. More than just listing addresses and contact details, we break down the actual application requirements, types of buildings and apartments (including maintenance and amenities) available, and the general price range in which their units fall. For most companies, collected industry opinions about the application flexibility, value for money, and apartment quality are also included.

By assessing your own financial realities and apartment criteria, you can quickly search through the management companies using our quick profile graph. This insures that you are only looking at properties managed by companies that will approve you, saving you a lot of time and energy.

And finally, apartment buildings are also listed by address in the Table of Contents. So, if you are walking down the street and like the look of a building, but have no idea how to apply or how manages the building, you can look the address up in The Nouveau Native’s No Fee New York and flip right to the management company’s profile page!

Tomorrow we will discuss methods of searching using The Nouveau Native’s No Fee New York guide books to insure that you are fully aware of ALL properties in your price range and not just the ones empty today.

Where Do Agents & Listers Get Their Apartments?

2008-06-16T09:18:00.002-04:00

Before I write about The Nouveau Native’s No Fee New York series and how using the guide book can help you to find an apartment without having to pay a brokers fee, I am going to explain how brokers and listing service get the apartments that they market.

Open Listings:
Open listings are the “bread and butter” of most rental offices and online listing services. Management companies and landlords make their available units “open” to anyone. Generally, an update of the management company’s open listings are either forwarded through email or fax to the brokerage or list service OR details of what is available can be found on the landlord’s web site. You will also find these listings in newspapers and online bulletin boards.

The listing manager at a brokerage or listing service will spend a great deal of time each day compiling and updating open listings. They will collect them from any source available, actual management companies and landlords, online bulletin boards, newspapers, even other listing services.

Exclusive Listings:
An exclusive listing is one in which the landlord or management company only allows a single agent, broker, or small group of selected brokers to show their property. Generally this is the case when the landlord has an arrangement with the brokerage to handle the credit and background checks on applicants and may have control over approval as well.

Because of the nature of the exclusive listing, it is really only germane to brokerage offices. Although you may see headlines on an online service stating that a unit is exclusive if the landlord or management company has an agreement to only list the unit with that particular web site.

Owner Listings:
Owners of small buildings or single units generally take a hands-on approach to renting. This is simply because a small owner is much more vulnerable to financial loss if a bad tenant moves in. While some small owners list their units as open listings and invite everyone and some use the exclusive listings method, a large number prefer to handle the entire production themselves. Owners frequently list in the newspaper, online bulletin board, or with a listing service, so that they can maintain better control, often pre-screening people before they even come to view the property. In this way, owners can weed out people that will not meet their financial requirements without even showing the apartment.

TIPS:

Don’t Be Intimidated: If you are waiting in reception to view a landlord’s property or attending an open house that is an OPEN LISTING, you will often wait along side people that have agents with them, have listing service print outs, our have downloaded the info online. Don’t be intimidated into believing that one group has a better chance of getting the apartment than another. Management companies and landlords look at the application strengths, not how you go to see the unit. If you hear an agent say that you can’t get the apartment unless you see it through him…ignore him. It is an old trick.

Be Ad Aware: Just because an ad says “by owner” doesn’t mean that that is true. Many agents and listing services will claim that an apartment is listed by an owner to entice “no fee” renters to call or email them. Owners can not charge a fee. They can charge an application and credit check fee, but not a broker’s fee or key fee. Many will use this as a bait and switch apartment claiming, “Oh that one was just rented, but I do have this other low fee apartment that is even better….”

Always Ask For More: No matter how you find an apartment, it is always a good idea to ask if they have anything else to show. On many occasions when I was looking for apartments, I asked the owner if he had anything else coming up only to find that what I was looking for was being renovated and would be available in a few weeks. Since most owners don’t list apartments until they are ready to show, I have three times on the past two decades rented lovely, newly renovated apartments that no one else even knew about.

Tomorrow we will get back to our "Options" discussion. Hope that everyone had a great weekend!

Options For NYC Renters - Online Bulletin Boards

2008-06-12T05:39:00.004-04:00

The combination of ungodly heat and a new Puppy has me up for the third night in a row at 4:00am answering emails and writing. So forgive me if I seem a bit loopy.

For the past few days we have discussed options available to apartment hunters. Today we will look online bulletin boards.

While there are many online bulletin boards out there in internet land, arguably the most popular is CraigsList.com. Instead of launching into the history of the site, I will jump to the pros and cons, since most people are familiar wit Craig’s List.

PROS:
Craig’s List is free.
Craig’s List is used by brokers, AVI’s, management companies, and private owners, so you can get a wide spectrum of apartments.
Legitimate owners who post are typically pretty good about removing posts once the apartment is rented.
Since the site started charging brokers and AVI’s there are less bait and switch ads. A bait and switch is an ad that claims that the apartment is by owner or no fee, but when you call, THAT apartment is gone, but there is this other one that has a fee.

CONS:
You have to do all of the leg work yourself.
You are in competition with hundreds of other people who are also using CraigsList.com to find an apartment.
While the vast majority of the listings are legitimate, many real estate related scams are perpetrated on Craig’s List because of the ease of posting and the number of users.
There are still bait and switch ads.
You have no way of knowing what a particular management company’s application requirements and procedures are until you have invested the time in actually going to see the apartment.

THINGS TO CONSIDER:
Apartments move fast. Make sure that you have an application package together. For more information on Application Packages that get accepted, check out The Nouveau Native’s No Fee New York 2008.
Most are first come first served. If you don’t get there as soon as it is posted, you will likely be out of luck.
DO NOT pay money to someone at an apartment. ONLY pay deposits ect in a management company, landlord, broker, or AVL office.
DO NOT send money through Western Union for an apartment.
If it seems too good to be true, it is too good to be true.

Personally, I think that Craig’sList.com has been a revolutionary force in Manhattan real estate. However, there are problems. People do post illegal apartments, illegal sublets, posts that are contrary to anti-discrimination laws, and all manner of scams. If you keep your head about you, you can find some real deals on Craig’s List, but it takes a lot of work. As with all aspects of real estate in Manhattan, you have to weigh the cost of your time and effort against the cost of an AVL or broker.

Tomorrow we will talk about The Nouveau Native’s No Fee New York guide book series and discuss ways that you can make the entire job of finding a place to call home easier, no matter what search method you use.

Options For NYC Renters - Street Lists

2008-06-11T10:01:00.000-04:00

Tuesday we discussed online listing services, today we are going to focus on the old fashioned, paper, street list.

Most listing services these days are online data bases that subscribers can access with a password or are spreadsheets that are emailed daily, listing all available units. However, every now and again I hear about someone purchasing a paper list of available apartments off of the street.

Now don’t get me wrong, a decade ago, paper lists were the way to go for potential renters attempting to avoid broker’s fees. Dozens of businesses allowed renters to come into their office and copy down the details on available units that might interest them. Many others simply typed a list of the available units and sold the list, hence the term “listing service.” The idea was that a renter would purchase a list on day one and if they hadn’t found an apartment at the end of the day, they could come back the next day and the day after, each time purchasing that day’s list, until they found an apartment.

Many paper listing services were very successful. Often a person who had worked as a listings manager at a real estate brokerage would set up his/her own list service on the side or even establish a business providing the general public and other small real estate offices with listings. But these services were operated like any other business with an actual address, a phone number to call if you had questions, and opening hours.

Unfortunately, there were also many scams. Generally scams involved “street lists” where people would respond to an ad in the Village Voice and show up at a certain location at a certain time, pay the charge (usually about $20.00), and be handed a list of available apartments. There was always a back story, which suggested that the lists were being sold so cheap because the seller worked at a real estate office and was tired of seeing agents charge so much for so little work. This played well with the idea of a) getting something for next to nothing and b) people wrongly believed that agents did “15 minutes of work for 15%”. People pretty quickly found that the addresses and contact details were either completely made up or had been taken out of the newspaper at various points and the units had long sense been rented. Of course when people came back for their money, the seller was long gone.

In any event, today I am going to forgo the PROS and CONS section. I can’t think of a single legitimate reason for anyone to purchase a list off the street. Firstly it is illegal to sell without either a Brokers license or an AVL. One of the requirements to have either license is that you have an actual address. So it would seem fishy to me that the seller isn’t using their address. Second, putting the apartment details online or on an email spreadsheet is so much faster, easier to update, and allows businesses to reach a much wider market.

I am not going to make a blanket statement that ALL street lists available today are scams. But I will say that I wouldn’t ever buy a street list and would never recommend anyone do so either.

Tomorrow we will talk about computer based bulletin boards such as Craig’s List.

See you tomorrow and stay out of the heat!

PS: Thanks guys for letting me know that comments weren’t showing up. It has been corrected now.

Options For NYC Renters - Online Listing Services

2008-06-10T12:17:00.002-04:00

Yesterday we discussed licensed real estate professionals as an option in finding an apartment in NYC. Today we will look at online listing services.

What is an online listing service? Essentially, a listing service is a database of available apartments. It is a sort of mid-way point between hiring a broker who does all of the groundwork for you but charges a brokers fee and searching completely on your own through newspapers, bulletin boards, and web sites for free. Most listing services charge a subscription fee that allows you to access their data for a set period of time.

PROS:
An online listing service is generally much cheaper than using a broker. The most popular site in NYC, RentDirect.com has several packages but charges roughly $200.00 for access.
You have access to the date 24 hours a day seven days a week. That means that if you want to weed through apartments at 3am, you can.
Often there are pictures which can help you weed out units that you wouldn’t be interested in, without actually going to see them.
You generally have more information about an apartment and the landlord or Management Company through listing services than you would if you just went through the newspaper or bulletin boards.

CONS:
What is listed as available isn’t always accurate since many services rely on the landlord or management company to update their listings. This can take days or weeks, which means that unavailable properties still show up as available.
Units can be rented out in a matter of minutes. Since listing services that handle their own updates call management companies once a day or sometimes every other day, listings can be inaccurate.
Without the expertise of a real estate agent, you may spend a great deal of time looking at apartments that either don’t meet your needs or will not accept you due to financial or credit requirements.
A lot of people find the choices overwhelming and an spend a lot of time running all over town as opposed to focusing on one area and one price range.

THINGS TO CONSIDER:
All listing services must have an Apartment Vendors License which is issued by the State. The only caveat to this is if a business is already a licensed real estate brokerage, they can operate a subscription service under their brokerage license. If you choose to use an online listing service, they should have their AVL or brokerage license displayed on their site. Do not work with an unlicensed real estate business of any kind.
Using a listing service requires a great deal of discipline. You will be responsible for weeding through the information, setting up your own appointments, making sure that you get to viewings on time, and completing your applications.
Using a listing service also requires you to be very practical. Hundreds of people may be interested in looking at the same apartments that you are interested in. It is a competitive market and without a real estate agent constantly checking and maneuvering to show you only available apartments, you will very likely find apartments that are already rented (or at least applications have been accepted) hours before.
A listing service can’t discuss your likelihood of getting accepted. A real estate professional can look at your finances and give an educated guess as to who will or won’t accept your application. You can waste a lot of time and application money simply because you don’t know which companies are unlikely to accept you.

Listing services can be great for people who have good credit, a decent salary, and the ability to drop everything to run to a newly listed apartment. But you have to understand that there job is selling data, NOT insuring that you rent an apartment. That is up to you and your own realities. Sadly, many people want to have real estate broker services (hand holding, up to the minute availabilities, inside knowledge of applications, etc) but only want to pay listing service prices. This is a recipe for upset and bad feelings.

It is also helpful if you understand that just because you have cut the real estate agent out of the picture, if your credit, financial situation, or job is less than perfect, you still won’t get an apartment. Management companies run credit checks, background checks, and eviction checks. They set the application requirements, not real estate agents.

And finally, you get what you pay for. Operating a business costs money. It costs money to rent space, equipment, to advertise, and to hire people. If you are considering a listing service that charges you $20, you have to think about the economy of such an arrangement. Could a legitimate business really make money at that rate? If it doesn’t make sense, go elsewhere.

Tomorrow we will discuss paper based listing services.

Bye for now...

PS... Tabby asked yesterday "....are their no fee brokers.....?"

Well Tabby, when a broker or real estate agent says that the apartment is a no fee apartment, it generally means that the broker is being paid by the landlord or management company rather than by you. These units do exist. But in a market where there are more people than units, it is typically a trick used to get rid of apartments that aren't moving. This doesn't mean that the apartments aren't any good. It is often the case that the developer or landlord simply has a lot of units (like in a newly renovated or built building). So they really aren't "no fee" it is simply that they are "no fee" to you since the landlord pays.

Thanks for your question!

Options For NYC Renters - Licensed RE Brokers

2008-06-09T09:01:00.007-04:00

On an almost daily basis, I receive at least one email asking me about the differences between brokers, online data base services like RentDirect.com, listing services, online bulletin boards like Craig’s List, & books like Nouveau Native’s No Fee New York. Some people ask very politely to advise them as to my opinion on the best way that they can find an affordable apartment. Others send notes like, “how the hell can an agent justify 15% fees for 15 minutes of work”. So this week, I’m going to break down the various options available to renters in Manhattan and the pros and cons of each. I hope that it helps.

Let’s start with licensed Real Estate Professionals:

Licensed Brokers/Real Estate Agents – In order to be a licensed real estate agent in NY (and you MUST have a license to practice) an agent must attend an accredited real estate school and attend 45 hours of State approved real estate classes. They must then pass a background check. This check includes finger printing and immigration checks and precludes people with felony convictions or un-discharged bankruptcies from pursuing a real estate career. After the checks and classes are complete, the prospective agent must pass a state license exam. These exams are considered extremely difficult.

The agent must then be sponsored by a broker who themselves have had to prove their expertise by both providing completed sale figures, an additional 90 hours of education, and another state exam. So, the idea that “anybody” can just show up and sell or rent out an apartment is a real fallacy.

Since we are discussing the rental market, I will explain the real estate agent’s job, from a renter’s prospective. The idea that a rental agent makes 15% of the annual rent for 15 minutes work is a huge misconception. In the same way that a doctor may only spend 15 minutes with you in an office appointment, but that doesn’t negate the education, training, research, time, and personal commitment to becoming a doctor that he/she dedicated prior to you walking into the exam room.

Successful real estate agents are those that spend a tremendous amount of time getting to know the management companies and landlords, their application procedures, preferred renters, maintenance style, and the types of buildings and apartments that they own and operate. A successful agent will be familiar with the people that make decisions in the landlord’s office and what issues derail applications. They will know which companies pride themselves on maintenance and which simply leave those issues up to the individual super or even the tenant. New York City is a very competitive city and the rental market is a perfect illustration. Availabilities change not only daily, but hourly. A successful agent has to stay on top of what is available and if possible, what will be available soon.

You should also understand that rental agents work on a commission only basis. That means that if they don’t produce results (get people into apartments) they don’t earn. This pretty quickly separates the wheat from the chaff, as the saying goes. It also gives them the task of staying in touch with dozens and maybe hundreds of management companies and landlords, continually updating their inventory, and finding and then servicing clients. Since real estate agents are paid on a commission only basis, they simply don’t have the time for a lot of messing around. They want to get a financially qualified person who is serious about renting immediately into their office and into an apartment quickly.

When I started out as an agent, over a decade ago, I quickly discovered just how many people are out there who waste your time. Some people simply don’t wish to deal with the realities of renting in Manhattan. I met people who had no money….I mean AT ALL. I met people who had no job or had a job that paid so little, they simply wouldn’t qualify for an apartment. I met people with bad credit, several who were being evicted for not paying their current landlord. The one thing that all of these people had in common however was the belief that somehow I held in my hand the ability to smooth over their problems. I was asked to falsify credit reports, write fake job letters, and even loan people money. My refusal to do any of these things meant that “I” personally was the reason that they were unable to rent.

I also met quite a few people who were “just looking,” some because they thought that they might want to move in another 6 months or year and wanted to get an idea of what was out there and some who simply wanted to see how “the other half lives.” For someone who works on commission, both these groups are problematic. You don’t want to completely alienate someone who may rent from you in six months. But by the same token, you can’t afford to spend your day acting like an apartment tour guide.

The most frustrating aspect however is that even when you find a client who is ready, willing, and able to rent from you, that client is most likely working with other agents as well. So a good rental agent has to figure out exactly what a client wants in an apartment and if at all possible, show them that perfect apartment before any other agent does. This gives rise to the idea that the agent spends “15 minutes” on a client. In fact, a successful agent has researched their current and upcoming inventory, weeded out all of the units that won’t appeal due to size, pet requirements, location, amenities, landlord requirements, etc etc and come up with two or three units that tick all the boxes or at least as many as possible. They then show those two or three units.

PROS:
1. An agent often has access to units that the average renter simply doesn’t have. This may mean units that are not yet available or units available through investors or small landlords that don’t advertise.

2. A good agent has the experience to weed out management companies that aren’t gong to accept you due to credit or financial limitations.
3. A good agent will be familiar with the buildings and be able to eliminate buildings and units that wouldn’t meet your requirements.
4. Some landlords will only work with agents and even then, only with agents that they know and with whom they have built a relationship.
5. A successful agent will work for a broker who has a dedicated listings department. That means that available units are updated throughout the day.
6. Agents don’t waste their time going to units that already have successful applications on them.

If you live far away, a rental agent can be a life saver. Many people only have a few days to look for an apartment thanks to their location. They may fly into the city for a few days and simply can’t spend their time hitting the pavement. By showing you only the few units that meet your needs and handling the application process, you can find an apartment very quickly.

CONS:
1. Most real estate agents charge between one month and 15% of the annual rent as their fee. This can mean that you need to come up with nearly four months rent (between deposit, first month rent, and fee) just to move in. However, some agents will negotiate the fee with you, though this will depend on the policy of the brokerage rather than the particular agent.
2. Most agents will only work with people who are ready to move within the next 15 days. Landlords will not hold apartments open for you. An empty unit is one that is costing the landlord money, so they want to achieve as close to 0% vacancy rate as possible.
3. Agent’s can seem rude, pushy, or abrupt. This is simply the reality of dealing with people who work in a fiercely competitive industry, where time is money, and situations change in a second.
4. If you don’t have a referral name, you can get stuck with the low man/woman on the totem pole. If you call a rental office and know who you want to speak with (someone who a friend has recommended perhaps) then you get that person. But if you don’t have a specific person that you want to deal with, either the first person to answer the “pool” phone (one that rings on all desks) gets you as a client or the next person in the on the list gets you as a client. Since experienced agents are generally in the field showing units, you may well get the new agents who are still building up there contacts. While everyone has to start somewhere and many new agents are perfectly fine, your ability to get the best service can be compromised by their lack of experience.
5. Agent’s can show units that would be available to you without a fee, if you had found it on your own through some other source. You will still be required to pay the fee however since they “found” the unit.

WHAT TO CONSIDER:
1. Working with established companies can be extremely helpful because they often have strict hiring policies and they will have a well established listings department insuring that you have access to the latest units. However, they are less likely to negotiate the fee with you.
2. Smaller or less established companies will be more willing to negotiate fees with you. However, they often have fewer exclusive or broker only listings and may rely heavily on the same sources that you could use (listings services, newspapers, and the Nouveau Native’s No Fee New York).
3. If you aren’t ready to move or are just “thinking about it”, go to open houses or onsite rental offices. It is unfair to force people to give up their time and ability to earn money, simply because you might someday move.
4. You must move quickly. Apartments go in minutes and available units change hour by hour. You simply don’t have the time to “think about it” in the same way that you do if you were purchasing.
5. Even though you are working with an agent, you will still be responsible for application fees and credit checks fees with the landlord or management company.
6. Make sure that you are working with a licensed real estate agent. Agents are required to carry an id card that shows that they are in fact licensed. While agents can and do loose their cards, there is no reason for them not to have a Xerox copy since the brokerage has to maintain a copy of the license too. Most of the scams perpetrated by “real estate agents” are in fact committed by people who are simply pretending to be agents.
7. I can think of only one landlord in the City that accepts personal checks for deposits and the first month rent and I can’t think of any real estate agency that accepts personal checks for their fees. You need to be aware that you will need to produce certified checks or money orders for your first month rent, security, and fee. You can also pay by bank transfer. Some companies will accept credit card payments, but thanks to charge backs and people attempting to reverse charges once they move in, many don’t. And yes, everyone accepts cash. But it is risky to walk around Manhattan with thousands in cash on you. I had a client years ago that was robbed in broad daylight when she left the bank on the way to the lease signing. She had taken out a loan to cover the deposit, first month, and fees and lost both the money and the apartment thanks to the robbery.
8. Lease signings take place in the landlord’s office or the real estate broker’s office. NOT on the corner. NOT at a coffee shop. NOT at the bank when you hand over cash. People get so excited about getting their apartment that they often lose all common sense.

All in all, if you have a limited amount of time due to work commitments or location and you can afford the fee, using the services of a real estate agent can save you a tremendous amount of time, money, and stress. But for a real estate agent/client relationship to be successful you have to be financially ready, willing, and able to rent and you have to be very clear (and realistic) about what you want and can afford.

Tomorrow I will talk about online listing services.

Bye now!

Window Box Air Conditioners

2008-06-06T07:08:00.000-04:00

With brutally hot summer days just around the cornrow, many without central air conditioning are planning on purchasing window box air conditioners to off set the heat. For renters, few purchases can cause more legal troubles however, so finding out what your responsibilities is essential.

Obviously, installing a window box air conditioner is not simply a matter of setting a unit on your window sill. Pedestrians can and do become injured or even killed by window box units that plunge to the street below, thanks to poor installation or maintenance. Many management companies require that either a licensed installer fits your unit or that their own management team installs the unit, often for a small fee.

Window boxes can also offer crooks an easy point of access to your apartment. Since many people simply place a piece of clear plastic or cardboard around the unit to fill in the gaps, crooks can simply pull out the air conditioner and enter your home. Most insurance carriers require that the window box be fitted with anti-removal fittings.

In addition, renters that live in “utilities included” units are generally charged a higher rate of rent if they have window box air conditioners due to the huge increase in electric bills. Leases in these units generally state that if you get an air conditioner, you are required to alert them so that a rate adjustment can be made.

So what should you do to stay within the bounds of your lease and the law? First and foremost, talk to your management company. Most management companies have very clear policies regarding window box air conditioners. Whether this means that they will handle installation or simply that they can recommend a reputable installer, it is a great place to start.

If your management company is no help, ask around. There are deals to be had. But it is essential that you hire an installer. The charges for instillation are very small and when you compare it to the very real possibility of injury or death, there really isn’t an option.

Have a cool and safe summer!

Moving In New York City

2008-06-04T10:41:00.000-04:00

How do I find a reputable moving company?

Moving is an emotionally and physically exhausting process made worse by the fear of damages and the cost. Often people decide to move themselves using cars and rental vans, in order to save money. This frequently turns out to be a false economy since people end up spending a fortune on gas and parking tickets, not to mention the physical toll. Moving home is considered one of the most stressful aspects of adult life and is a frequent cause of friendship and relationship breakdown.

Having said that, finding a moving company that you can trust is no cake walk either. The NYDOT (Department of Transportation) which regulates moving company licenses and activities has seen it all.

Moving Company A advertised in a local free paper that they would charge only $7.50 per man per hour, well below the average. However, once the relocater items were on the truck, the company foreman demanded an additional $1000 to deliver the items. When the relocater refused, Moving Company A drove away with the entire contents of the home.

Moving Company B delivered the household goods, but somehow the electronics didn’t make it. Moving Company B claimed that they never collected any electrics and with no paperwork, it became their word against the relocater. The police said that without proof they could do nothing.

Moving Company C was not licensed or bonded and when several items were broken, the relocater was forced to cover the loss.

Unfortunately, unlicensed movers are a huge problem in NYC and with ease of access to rental trucks; criminals can and do rent trucks, pose as movers, and simply drive away with people’s belongings and money. So what can be done?

The NYDOT has an extremely helpful web site that details exactly how to verify that your movers are licensed and in good standing. They also provide valuable advice on selecting a mover and protecting yourself and your belongings.

https://www.nysdot.gov/portal/page/portal/divisions/operating/osss/truck/moving

You should be aware, if you are moving into a doorman building, many require proof that the moving company is licensed and bonded prior to your move in date. This is simply because a licensed and bonded mover provides legal sureties that if they damage the building in any way (scuff floors, damage walls, etc) that they are financially liable. Many doorman buildings will NOT allow you to move in yourself.

Having moved many times in my life, I can testify to the fact that hiring a moving company can be tremendously beneficial, both financially and emotionally. Just check them out first and protect yourself.

Can I Negotiate A Rent Reduction?

2008-05-28T09:43:00.000-04:00

I recently read an article in the New York Post about rental prices falling. I know that an apartment in my building that is the same size as mine is being offered for $200 cheaper a month than mine. How can I negotiate with the landlord to lower my rent?

In some areas of town and for some types of units, rents are falling and it is taking longer for apartments to be rented out. Most industry professionals would probably see this as price “correcting” rather than price dropping however, since apartment prices had increased at a pretty dramatic rate for much of the past five years.

Generally, the management companies that have a glut of new apartments thanks to the building explosion of the past few years are the ones that are dropping their prices. Studio units in luxury doorman buildings in trendy areas are probably the most subject to a price drop, particularly in the Wall Street area and far west side of Chelsea. However, the same units in more established areas of the Village, Upper East & West Sides are not dropping at all and the vacancy rate remains very low.

In order to negotiate well in any situation, you have to have something that they other person wants and may not gain without compromise. If you are already living in the building and already have a lease, the management company has no incentive at all to negotiate simply because you are already contracted to that unit for that price. If you are close to the end of your lease however, and you have been a good tenant (paid your rent on time, haven’t been the subject of complaints, etc) then you have a much better case IF your building has a high number of unoccupied units.

When the end of your lease approaches, you should get a renewal offer. This will essentially extend your lease for a set period of time (generally a year) and typically will have the same clauses as your current lease. However, if the management company is looking to raise the rent, this increase will be spelled out in the offer letter. If you want to negotiate the rent, make a copy of the offer letter, but do not sign it, as signing it indicates that you are happy to accept the new offer and all of it’s terms. Include a copy of the renewal offer, write a brief letter explaining your request. This should be something very short and direct.

Dear Manager,

I have enjoyed living in apartment 5F for the past year and look forward to living here for many years to come. I did notice however that other units in my line are currently being offered for $200 less per month than I am currently paying. I would appreciate a new offer letter that reflects the current market value of my unit.

Sincerely,
Tenant

If the management company is agreeable, you should receive a new offer. However you should also be aware that all units, even in the same line are not necessarily created equal. You may see that studios in your building are now advertised for $200 less a month, but are they the same size and layout? Do they have the same amenities? Units can vary wildly in size and quality even within a building.

In addition, a management company has no obligation to lease the unit to you at the price that you request. If they decline, do you really want to move? Often with moving expenses, even if you find an apartment that is cheaper, you won’t be any better off at all. This is why sending a polite letter is essential. If you start sending threats that you will move, etc you may back yourself into a corner difficult to get out of if the management company declines to reduce your rent.

Negotiating rent is always a possibility, if you are knowledgeable about your building and the current market values. But insure that you do so in a respectful and friendly way.

Good luck!

What is a Broker Protected Apartment?

2008-05-26T06:01:00.000-04:00

I recently completed an application for an apartment that I found using the book. (The Nouveau Native’s No Fee New York 2008) At the end of the application, it said “Brokers Protected” in bold letters. What does that mean?

Most management companies are happy to work with you on your own, but are also happy to work with brokers. If you found the apartment on your own through the book, or the newspaper, or online, or word of mouth, etc the apartment will be a no fee apartment since you weren’t introduced to the property by a broker.

Part of the job of the real estate agent or broker is to find apartments that will fit your needs. This means that in addition to using their own contacts, they too use the book and look through newspapers and online sources. Since broker’s work on commission, the statement at the bottom of the application simply means that the management company will not allow a potential renter to cut the real estate agent out of the deal IF the agent showed the property to you.

It may not surprise you that people that have used the services of a broker often feel cheated that they could have gotten the apartment without having to pay the fee if they had done the legwork themselves. But the reality is, that that is what they are paying the broker to do, all the legwork. It is not uncommon for people to approach the management company after the real estate agent has shown them the property and even after completing applications and attempt to rent the apartment directly, without the broker. This is not a good idea at all. Management companies look at more than just your application and paperwork when making a decision. If you show yourself to be a dishonest person by trying to avoid paying for services for which you have contracted, this sends up serious red flags.

In reality almost all management companies protect brokers, though few of them actually list this on their applications.

Nouveau Native’s No Fee New York Adds Roommate Guide To Roster

2008-05-23T09:35:00.000-04:00

The editors of The Nouveau Native’s No Fee New York have announced that they will add a title to the upcoming 2009 series. In addition to the standard renter’s guide and specialty guide books providing assistance for New Yorker’s looking to rent a family or pet friendly apartment, a new guide book specifically designed to help the student and roommate market will be released. The Nouveau Native’s No Fee New York for Roommates & Students 2009 will be in book stores on December 15, 2008.

The Nouveau Native’s No Fee New York 2008 Announces New Format for 2009

2008-05-22T11:35:00.001-04:00

The editors of the popular apartment rental guide book have announced that they will issue the 2009 editions in the standard paperback format as well as several electronic formats to enable a more user-friendly and discrete experience. The Nouveau Native’s No Fee New York 2009, The Nouveau Native’s No Fee New York With Pets 2009, and The Nouveau Native’s No Fee New York With Kids 2009 will all be available in ebook format, as well as several PDA formats.

The 2009 editions of The Nouveau Native’s No Fee New York series will hit bookstores December 15, 2008.

Celebrate The Nouveau Native's No Fee New York Landmark!

2008-05-20T06:22:00.001-04:00

The Nouveau Native No Fee New York Guide Books have now passed 2000 units sold! That makes the series one of the most popular regional property books in the world!

To celebrate we are donating copies of Nouveau Native Guides to domestic violence centers and other organizations that provide assistance to men, women, and families who need a new place to live in the New York City area.

We are also sending a copy of The Nouveau Native’s No Fee New York to college and university housing offices in the greater metropolitan area to enable them to provide the tools that will help their students assess off campus housing options.

Plus, we are re-designing our blog, now in it’s 3rd year, to provide easier access to information important to New York City renters.

Thank you so much! Our success is due in large part to the continued support, suggestions, and input from real estate professionals and New York City renters.

What’s In Store For the 2009 Editions?

We are currently redesigning the Nouveau Native Guide Series to make it eBook, Blackberry, PDA & IPOD compatible.

We are expanding our coverage area to include more Brooklyn & Queens management companies and landlords.

The Nouveau Native's No Fee New York 2008

2008-05-20T06:10:00.003-04:00

The New York City rental market Exposed!

The Nouveau Native's NO FEE New York 2008: The Completely Unauthorized Guide To No Broker Fee Rentals in New York City

The closely guarded secrets and insider information previously known only to real estate professionals and native New Yorkers is now available to YOU. Now in it's third year, The Nouveau Native's NO FEE New York series has proved to be among the best selling real estate rental guide books in the US. In response to the incredible popularity of the series, we are very proud to present The Nouveau Native's No Fee New York 2008: The Completely Unauthorized Guide To No Broker Fee Rentals In New York City. This annual guide is designed to give renters an accurate, unbiased, and easy to understand primer of the rental process.

The book lists over one hundred private Landlords and management companies that collectively represent over ten-thousand apartments in New York City. This invaluable reference book also provides contact information for each Landlord or Management Company as well as complete details about the properties, costs, financial and credit requirements, viewing procedures, maintenance ratings, and amenities available. Perhaps most importantly, the book gives guidance as to how to rent any of the properties listed without a broker's fee.

ISBN 9780977426034

The Nouveau Native's NO FEE New York 2008 is available from all good bookstore including Barnes and Noble, all University bookstores, Amazon, MSN, and Forbes!

Weatherproof Your NYC Apartment For Winter

2008-05-19T18:18:00.007-04:00

With Halloween just around the corner and the temperature starting to drop (on some days anyway) many people will start to pay close attention to the drafts and cold spots in their home. As a renter, especially if you rent in an older building or one with less then stellar maintenance, you may be thinking ahead to colder rooms and higher utility bills. But have no fear, even if you aren’t a “handy Andy,” you can still take simple and inexpensive steps to weather proof your apartment.

Doors: The gap under your doorway can be one of the largest sources of cold air, wasting both heat and your money. If you are on a low floor, where the hall temperature is greatly influenced by the outside cold air rushing in every time the entryway door is opened or on a floor that has drafty windows in the hall, the cold temperature of the hallway can really influence the temperature of your apartment. Many people don’t even notice the large gap under their door, but by attaching a “draft dodger” can save you a small fortune and keep your apartment toasty warm.

Draft dodgers typically are felted wool, rubber, or Styrofoam strips or tubes that attach to the base of the door, effectively sealing the cold air out and your warm air in. These inexpensive weather strips are easily attached with screws or an industrial tape and can be purchased at hardware and home stores.

Windows: Double pained windows that don’t close properly due to warping can allow cold air into rooms. Apply weather strip tape to the joints where the frame meets the window and the cold air is kept out. Most hardware stores have weather stripping tape, which is essentially a thin strip of foam that adheres to the joint with strong tape.

Single pained windows, often found in older buildings, can lower room temperature simply because there is no air buffer between the inside and the outside. The only really effective way to block the cold with single pane windows is to cover them with an insulating sheet. Most hardware stores will have window insulation kits which include a special shrink wrap type of plastic film and rolls of double sided insulating tape. Run the tape completely around the window frame, apply the plastic film and then use a hairdryer to warm the plastic. This creates a tight seal and a warm air insulating pocket between the film and the glass. While it does make it difficult to see, (like looking through plastic wrap) it is one of the cheapest and best insulating products on the market.

Air Conditioners: Those with window box air conditioners will be faced with two issues, insulting the box itself so that the winter elements don’t damage the unit and keeping the cold air from coming in through the window opening. Window boxes should be covered with a special insulting cover. This keeps the pipes from freezing, the rubber tubes from cracking and breaking, and the coolant coagulating. The opening around the box itself and any vents should also be winter proofed. Generally, the same insulating tape used to weather proof double paned windows can be used to seal the joints and a piece of plastic or felted wool can be used to seal any vents.

Stay warm!

originally posted October 13, 2007

Roommate wants out after only a month…..

2008-05-19T18:18:00.006-04:00

At the beginning of August I rented an apartment with two other girls. We are all attending college and wanted to have our own place rather than stay in the dorms. The landlord said that he would only accept one guarantor over the entire rent, so Sandra’s Dad (who has a lot of money) guarantor the rent. Now after only a month, she decided that she doesn’t want to live in the City, has transferred to Missouri State, and moved out. We can find another roommate, but are we legally allowed to live here? And should we tell the landlord?

Hi Carrie, sorry that you are having this trouble. This type of situation is exactly why landlords don’t like to rent to students/multiple roomates. There is the practical solution and the legal solutution. How it plays out depends in large part to your finances and Sandra’s Dad. If your parent had been the guarantor, this would not be an issue. The fact that Sandra’s Dad is the guarantor is where the serious problems lie.

If your name is on the lease, you have the right to live in the apartment as long as you pay rent and adhere to the other requirements of the lease. Sandra is legally responsible for her part of the payment, because she signed a legally binding contract. But, if she has moved out and is now in another state, that may be really difficult to collect. In New York, a lease signatory (each person who signs the lease) is “jointly and severally” responsible for the rent payment. That means that each of you is legally responsible for ALL of the rent, not just your part. So, the landlord won’t accept 2/3rds of the rent from you and the other roommate and disregard Sandra’s part. Actually, if your other roommate moved out too, you would be responsible for the entire rent.

Sandra’s father is legally responsible for the entire rent, in the event that the rent doesn’t get paid. Since he guaranteed the rent for the apartment and NOT just for his daughter, he is responsible even though she has moved out. As long as the rent is paid, the landlord wouldn’t contact him about his responsibility. The problem arises however, if Sandra’s Dad contacts the landlord and asks to terminate the lease early. Because of the low occupancy rate, the landlord knows that he can quickly rent the unit out again and may make some money in the deal if Sandra’s Dad offers to buy out the lease. In that instance, Sandra’s Dad may offer to pay two month’s rent as a premium for the landlord to terminate his responsibility. This would leave you in an awkward spot. The landlord would likely alert you that you either had to find a new guarantor or that the lease had been breached and that you have a certain amount of time to move out.

If you contact the landlord and tell him what has happened, you may find that he moves to evict you. While that would take some time, it isn’t a nice process and will leave a black mark on your credit. If you have a responsible person who can move into Sandra’s place and cover that part of the rent, fine. The new roommate however will not be able to sign the lease with the landlord, but could have a sublet agreement for Sandra’s room.

As long as you keep paying the rent on time and Sandra’s Dad doesn’t make any calls, the landlord probably won’t know or care who lives there. You should be aware however that if you wanted to extend the lease, Sandra’s father would have to sign again as the guarantor unless you can find someone else. Since that would be unlikely if his daughter isn’t living there, you should prepare to move at the end of this lease.

originally posted August 26, 2007

NYC Doorman vs. Non-Doorman Buildings

2008-05-19T18:18:00.005-04:00

Does having a doorman really warrant the extra rent charged for doorman buildings?

The doorman vs. non-doorman building debate has been going for on as long as there have been doormen. The proponents of doorman building living say that the extra expense is warranted due to increased security and the convenience of having someone to accept packages, screen callers, and administer concierge services. Opponents point out that people are robbed, raped, and killed in doorman buildings too and that the added expense (sometimes as much as an additional 35% of the rent price) simply doesn’t equal value for money. Do you receive enough packages to justify such a rent increase?

While it is true that people get robbed, raped, murdered, etc in doorman buildings too, one of the main benefits from a safety perspective is that a criminal has to work much harder to gain access to an apartment and go unnoticed in the common areas. Doorman buildings typically have someone who mans the entry way/lobby of the building and very often monitors the hallways/laundry area/stairways, etc via closed circuit television. Since tenants are most vulnerable in common areas (stairwells, laundry rooms, and unmanned entryways) there is clearly a benefit to having someone looking out for you.

One of the problems with the debate however, is that not all buildings are created equal. I have been to buildings that were billed as “doorman” buildings, when in reality there was “a guy” sitting on a bar stool in the vestibule. I have been to others where an entire team of people opened the doors, assisted with baggage, ordered car service, organized theatre tickets and dinner reservations, and even walked the dog. Surprisingly, the rental price for each of the units was almost the same! By the same token, a non-doorman building with poor lighting, a lot of blind spots, and old locks or security features is going to be much more attractive to a criminal than a modern, bright, well planned non-doorman building.

In my opinion, while there are some people who see a doorman building as a status symbol, most people will weigh up the convenience of a “full service” doorman building and find it worth the additional cost. What is perhaps a more important consideration however is that no matter what your budget; find the safest building that provides the best value for money. Paying top dollar for a poorly serviced “doorman” building is just as silly as paying for a poorly maintained non-doorman building.

originally posted August 17, 2007

NYC Apartment Competition in the Fall

2008-05-19T18:18:00.004-04:00

Lately every viewing I have been to has had dozens of students. I am worried that I am competing against too many people because of the time of year. Would I have a better chance of getting what I want if I wait until the students are back in school?

Despite the numbers of people that may be applying for a particular unit, students are the least desirable type of tenant, from a landlord’s point of view. Generally they are considered less stable financially and emotionally and are suffer the stigma of having both high turn over and no respect for the unit and building. So, unless you have bad credit or borderline finances, even if dozens of students apply for the apartment that you want, there really should be no competition.
That being said, most classes start in the last week or August or first week of September. If you don’t have stellar credit or have financial limitations that make you a less then desirable candidate for an apartment, waiting until the students are situated may give you a better chance at approval.

originally posted August 10, 2007

NYC Running A Business From Your Apartment

2008-05-19T18:18:00.003-04:00

I want to operate a private nail design salon out of my apartment, but my lease says no business purposes allowed. I won’t have signs out front, so I should be okay….right?

The lease includes this clause in order to prevent two activities from taking place in residential buildings; commercial enterprises and manufacturing. However, to attribute these limitations to your landlord’s lack of support of your capitalistic ambitions is a mistake. Zoning restrictions imposed on landlords prevent commercial or manufacturing in all residential buildings unless a zoning “easement” or special zoning area has been created. This allows some lower floors to house commercial units in residential buildings, but prevents commercial activities in upper units. The manufacturing restrictions are designed to insure the safety of the general public by keeping chemical, explosive, or flammable materials out of residential areas. The restriction also helps to curb noise and smell issues.

Your landlord will also have to adhere to insurance requirements. Commercial and manufacturing enterprises have higher instances of claims. Since landlords are legally required to maintain insurance over the building, they will have to adhere to the insurance requirements in order to stay in legal compliance.

Aside from keeping the City and the insurance company happy, your landlord will have tenant issues in mind. Tenants have a right to expect a degree of safety and the “right to quiet enjoyment” of the property. Operating a commercial enterprise from your apartment will mean that there is increased activity in the hallways which means increased noise. It will also mean that with an increase in traffic in and out of the building, the entryway will be less secure, and tenants will be put at a greater risk of crime and property damage.

It is a very bad idea to attempt to run a nail salon out of your apartment. The increase in foot traffic and the smell of the nail chemicals will definitely cause your neighbors to complain. Without the proper ventilation systems in place, the Department of Health and Safety will certainly be “interested” in your activities and these sorts of lease violations can result in very prompt evictions. It is a much better idea to lease a small space from a salon in a zoned commercial area and operate within the law.

originally posted July 27, 2007

My landlord won't give me a referral.....

2008-05-19T18:18:00.002-04:00

Hi, I am going to attend New York University this fall and am coming into town next week to look for an apartment. I have my school acceptance letter and copy of my bank statement showing that I have enough in savings to cover my rent for the nine months I will be in NYC. I want to bring a referral letter from my current landlord, but he says that he doesn’t give referrals until a tenant moves out. How can I prove that I am a good tenant?

Welcome to NYU and New York City! You are already far ahead of most new comers if you have enough money to cover rent for nine months and that in it self will be pretty appealing to most landlords. Generally landlords in NYC don’t ask for landlord references. However, if you have proof of your monthly rent payments, either a receipt or copies of the canceled checks, that will certainly suffice for anyone who may want a referral.

You should also be aware that most landlords will want you to rent for an entire year. If you only look for rentals that will allow nine months, you may be severely limiting yourself. Many students rent from year to year, especially if they will be returning next year to school. If you will only be here for nine months, rent for a year and then give notice two months before you intend on leaving.

Good luck in your search and enjoy the best city in the world!

originally posted July 6, 2007