Time is critical if you want to ensure that your ideal apartment is yours to rent. Having all the necessary paperwork and materials ready and available before you begin your apartment search is extremely helpful:
Tungsten Properties will always run a credit report for every rental applicant and guarantor. The price of a credit report / application is generally $50, but can be higher if a landlord requires a more extensive credit check. Tungsten Properties offers its landlords top-notch credit reporting. Unfortunately credit reports obtained on your own are not accepted. What type of credit information will negatively affect your chances of renting? A few old late payments are generally acceptable. A high revolving credit balance is often unacceptable. Past due payments that are still outstanding are generally unacceptable. Delinquencies and collections are almost always unacceptable. A public record due to a crime is often unacceptable, and a Landlord-Tenant record is almost always unacceptable. Be sure to advise your Tungsten Properties agent if you think you have bad credit, and we will help you as much as we can. If our agents properly prepare you for the process you have a better chance of finding an apartment. Different landlords have different ways of dealing with "credit issues". Some will allow you to increase the security deposit or to use a guarantor. Others may reject the application completely. Tungsten Properties will guide you in a way that will save you time, money and a lot of frustration.
A guarantor, or a "co-signor," is an individual who is willing to guarantee your lease on your behalf. The guarantor is responsible for all terms of your lease and guaranties not only your share of the rent but the entire lease - if it is a share situation.
If you do not meet the financial or credit requirements, a guarantor might make it possible for you to rent an apartment. Students or young individuals who do not meet the income requirements will usually need a guarantor. When a tenant has bad credit, accepting a guarantor will depend on how bad the credit is and on how strict the management is. Sometimes a combination of guarantor and extra security is needed. If you think you might need a guarantor please advise your agent of this so that together you can prepare most efficiently.
A guarantor is often a relative but it does not have to be. Many landlords require the guarantor to live in the Tri-State area (New York, New Jersey or Connecticut). Try to prepare your potential guarantor by advising them what will be required of them. You might have to act quickly, and their cooperation may be critical for your approval. A guarantor needs to fill out an application form and provide the required documents. The requirements are usually good credit and double the income requirements of an applicant. If an applicant is required to show an annual income of 40-50 times the monthly rent, a guarantor is required to show annual income of 80-100 times the monthly rent. The documents required are similar, though usually all that is needed are proof of income (tax returns) and a credit report.
During the past few years the New York City market has changed in the way Brokers collect their commissions. In the past, the renter almost always paid the broker's commission. As of late, many landlords offer fees to brokers to help them bring in good tenants. Tungsten Properties knows and has relationships with these landlords. We are able to find these apartments for you, and therefore you pay no fee for the service, hence "no fee."
As a guideline in NYC, one can expect to spend approximately 25% of your gross annual income on rent. For example if you earn $80,000 per year, plan to spend $20,000 on rent, or roughly $1,670 per month.
The basic requirement is that you earn annually 40 to 50 times the amount of the monthly rent, and that you have a strong credit rating. For example, for a $1,500 apartment the landlord will typically require a $60,000 to $75,000 per year income.
A prime lease is a lease that comes directly from the building owner. If the building has more than five separate apartments, they are probably "rent stabilized", under the New York State rental guidelines, unless they have rents above $2,000 per month and have officially been registered as "decontrolled". Common aspects of rent stabilized leases are:
Sub-leases are generally used for renting a cooperative apartment or a rental apartment for a period of the remaining lease. Since owners in cooperative buildings are technically owners of shares in the Apartment Corporation, each shareholder is a proprietary tenant and has the right to sub-lease his or her apartment. Common aspects of a sublease are as follows: