Bro - ker
a person, corporation, or partnership licensed by a state to represent a buyer or seller in a real estate transaction in exchange for a commission.
Brokerage services in New York are expensive. The standard market rate for a broker fee is 15% of the annual rent. This is close to two months of rent…upfront.
However the vast majority of your market uses brokers. Why?
- A good apartment in Manhattan is rented almost immediately upon availability
- Only brokers have access to that information
- Brokers are paid for the expertise and their information
- Finding an apartment without a broker is not impossible, but incredibly time consuming
There are important things that you should know when renting. The following is a standard requirement sheet of “Things you need to know” when renting an apartment in Manhattan. It varies from Landlord to Landlord. Some may ask for additional information and some might ask for less. This is just a list to give you an idea:
Income Requirement/Verification
Generally, landlords have an income requirement that may range from 40-50 times the monthly rent for the applicant. If the applicant does not make 40 times the monthly rent, usually the applicant can obtain a guarantor or co-signer. (A Guarantor is someone who will guarantee that if anything goes wrong, they will be financially responsible.) Please note that the guarantor has a higher income requirement that ranges from 75-90 times the monthly rent. This is usually achieved by showing one of the following, an employment letter (please see below), previous years' tax returns or an accountant's letter.
Employment Verification
Most landlords will require letters of employment from the applicants and guarantors, where applicable. This letter should be on Company letterhead, provide the position, and start date of employment, salary and bonus, if applicable.
Asset verification
This can be in the form of a bank statement or a brokerage statement.
Application
To be filled out by all parties applying for the apartment, this includes applicants and guarantors.
Photo ID
A copy of a Government issued ID is a requirement.
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