Rental Season is Starting

It seems odd to people from other cities that there is a “rental season.” I have met agents who treat teal estate as a seasonal gig. Now we are not in full swing, but this past weekend I have seen open houses crowded and it’s actually fun at this early date to meet people who are excited about moving to NYC.

The market changes quickly this time of year. Right now there is a paradox, prices are slightly low but inventory is also LOW! So it means there are some bargains out there, but there is not the number of choices you might expect. So if you are looking to move in April now is a great time to get moving!

AVOID NEW YORK CITY APARTMENT RENTAL SCAMS

I have been in real estate since January 2019. One thing has changed .

The proliferation of scams.

I had an international student I successfully placed in a rent-stabilized building with elevator and laundry this fall. The landlord even covered my fee.

But since she was from Canada and new to NYC she had spoken to endless fraudsters on Facebook and Craigslist. The things they say, the lies they come up with are amazing. These scammers are skilled!

There is someone on instagram right now with thousands of follows and views and excellent engagement marketing fake listings. They are using the name of a major brokerage. They are literally committing crimes in plain view and I don’t know if anyone will stop them.

A year ago I had a good looking listing. Scammers took my photos and video and offered it for less than half the cost.

Scammers prey on people who are new to NY, new to the US, and in many cases face challenges qualifying.

Please, ask the person you are speaking with to show you a license. Call their broker. I have had a client or two be extra suspicious of me and now I get it.

Please learn what the qualifications are for renting in New York City, many apartments accept US guarantors, there are also commercial rental guarantee companies that can help if you are moving from another country. It may take a little extra work to make your plans but I promise you it is worth the work not to have your money stolen and your time wasted.

One other thing, social media is fun, but it is often a terrible barometer of the NYC apartment market. Influencers show the smallest apartment in the most expensive location to get a lot of reaction. This misinformation makes people think getting an apartment though legitimate venues is out of reach.

So call me. Call anyone with a REAL real estate license. Don’t get scammed.

I’m moving to New York City, do I need a real estate agent?

I see this question on Facebook all the time. Should someone moving to NYC have a real estate agent represent them?

It really depends on your situation, Let us say you have a friend who lives in a large apartment building, you like and can afford that building, and they have an apartment that suits your needs, you can probably just go ahead and apply for that apartment.

However if you are not sure where to live, how to get the most for your budget, or you are not sure how to sort through all of the options available, having an agent can make a HUGE difference navigating a complex and competitive process.

Getting an apartment in NYC can be VERY different than other major cities. There are rental units, condos, and co-ops which have very different application processes. I think one of the most important things an agent can do is help you navigate qualification.

If you are starting a new career, you may or may not need a guarantor. Recently I had a pair of clients, one was transitioning to a much higher paying job. Strictly on paper they probably needed a guarantor, but I was able to package their qualifications so they could get an apartment on their own.

Each landlord has different preferences, some really like to have a guarantor all or most of the time, others really prefer clients who qualify without help. An experienced rental agent can help you figure out what is a good fit for you,

I think the most important thing an agent can do is steer you away from difficult situations. After 5 years of rental transactions, I can tell you which owners and agents are challenging to deal with or are even dishonest. I try to guide my clients into a transaction that will be smooth and as stress-free as possible, I don’t have a magic wand or crystal ball, but I can certainly put you on the path to success.

When I started real estate in 2019 a big part of my pitch was I can help you find a “no fee” apartment. While occasionally landlords do pay me, most of the time clients want to look at a full range of places. I really encourage people to think that they are hiring me to work for them, and if someone else picks up the bill it’s a bonus.

So nobody “needs” to have an agent represent them. If you don’t want to be in constant communication with someone, or if you really have no idea what you want, you may be better exploring on your own. But having an agent can absolutely help you find the best situation and make the process a lot more fun.

How to prepare for your New York City rental apartment search

It is February 26 and the calls will start soon. People hoping to get a jump start on finding a lease in New York City that starts in June or July or even later.

So you go online, you see a good price on an apartment and you email the agent that you would LOVE THAT APARTMENT, just 3 months later that it becomes available.

People think this sort of searching will help them get ahead of the game and get the best deal. In fact what it leads to is apartment searching burnout!

But there are things you can do right now to help make your search successful in May, June, July and beond!

START RESEARCHING LOCATIONS

Whether you are in NYC or anywhere else location drives price. So start really looking at what locations will make you happy. Most importantly study the architecture!

If you like relatively new buildings with amenities such as a gym or a pet you not find many choices in quaint historic neighborhoods such as NoLita or the West Village. Instead look at areas that have the type of buildings you want.

On the other hand if you love historic details, high ceilings, and an apartment that screams NYC, do look in places like the Upper West Side, Greenwich Village, Gramercy Park.

I have seen it so many times, people come to search in NYC without a good sense of location, and end up tired and frustrated. Look at google maps or come here on a vacation or watch video tours of areas.

That way when apartments for your move date start coming on the market you will know what you want!

I am moving from overseas, how can I get an apartment in NYC?

Renting an apartment in NYC as an international student or new worker can feel confusing and stressful! Especially if you are searching remotely, it can be challenging to communicate with agents and owners and get virtual showings. Having US credit will play a role too.

It is possible to do it, and I have walked many people through the process.

If you are starting your first US job, or you do not have US credit you will need to find a way to qualify.

The least expensive and simplest way to qualify is to have a US guarantor. This can be a relative or friend. The person needs to be able to prove 80X the rent in income and they will need good credit, most likely over 700. If they have a lot of liquid assets that can help too. A high percentage of landlords in New York City accept US guarantors, and I would say that at least half the transactions I do involve one.

If you do not have a person who can serve as a guarantor your options are more limited. There are several companies that offer a guarantee service for renters. The most common ones in New York are https://www.insurent.com/ or https://www.theguarantors.com/.

If you plan to use this type of bond you will need to look for properties that accept it. A licensed real estate sales person or “agent’ such as myself can help. There is no general rule but as a guideline, bigger or more corporate buildings are more likely to accept these policies, smaller family-owned buildings may be less likely. But that is a generalization and there are smaller owners who take insurance.

Even if you are using a guarantor or policy the application process will include looking at the tenants paperwork. So please be prepared with your offer letter, bank statements, a tax returns, pay stubs, a landlord reference and other documents that can help show management you will be a dependable tenant.

If you have been searching on social media you may see people offering cheap apartments that don’t require qualification. Please know these are almost always scammers and can be very smooth and convincing.

Be prepared for apartment application success

So rental season 2023 is here. If you are going to take the time and energy to travel to NYC and search for an apartment, you will get much better results and be more likely to get the apartment you want if you are prepared.

Photo by PhotoMIX Company on Pexels.com

So what does that mean?

Paperwork– every landlord may be slightly different but you will almost always need the following items.

Photo ID. Proof of employment and income. This is usually an employment letter and pay stubs. If you are self-employed you may need a letter from a CPA to explain your financial situation. Proof of assets, usually 2 recent bank statements. Tax returns. The first 2 pages will be ok.

If you are a student, or a job hunter, or you don’t make 40x the rent, or you are very new at your job you probably need a guarantor. This is usually a family member in the US with good credit and who makes 80 times the rent. You can combine two guarantors, this is common for roommates in 2brs. Have a good talk with your search partner before you start looking.

Please please, assemble your documents before you find an apartment you like. It feels awful to see applicants fail because they can not organize what they need in time. As an agent it is frustrating and heartbreaking.

International students especially need a good plan. The best bet is to have a qualified family member in the US to be your guarantor. But if not there are companies such as Insurent and The Guarantors who can serve as a guarantor. But not all landlords work with them. I see so many people show up at showings not realizing that many landlords do not accept these policies.

Should I rent or buy an apartment in New York City?

So it’s been a most unusual spring in New York City. The timeline for renters has been turned on its ear. In the past starting a search for a “straight rental” 7 weeks early would have ended in frustration. I used to beg people to search 3.5 weeks before their move date, when they would have the most options and leverage.

Now any good apartment has applications within 48 hours of being listed. Even less sometimes. And on May 6 we are already seeing listings on StreetEasy for JULY!

As a listing agent I don’t think that is the most effective time, you want something to hit the market at at the time the most and best qualified renters are looking, but perhaps I will be singing a different tune soon. I just took an application for an off market listing for July 16.

Buying in Manhattan and inner Brooklyn and Queens is different in so many ways from the rest of the US. But with the rental market almost absurd, more relocation clients are starting to wonder, ‘Should I buy?”

While the rental market is out of control, the sales market still offers some deals. The rest of the US is in a sales frenzy, but a number of factors make Manhattan different.

The market was soft before the pandemic, the pandemic hit harder and longer here, and finally– the investment market here is different than the rest of the country, where investors will offer competitive cash for almost anything and do the deal in warp speed.

A few things to know.

If you are browsing I suggest using a NYC-centric search tool. Line City is good, StreetEasy is popular, you can also use almost any REBNY agency site. Try to avoid Zillow, which is the same data as StreetEasy but can be confusing.

The cheapest deals you see probably have a big asterisk. They are income-restricted, or occupied units with a tenant that is rent regulated, or cash-only.

Then you need to think about co-op versus condos.

If you are looking in the lowest price ranges most apartments will be co-ops not condos. To make this post efficient I linked an article that explains that. Many of the least expensive co-ops may have policies that make them less flexible as an investment property, which is another major difference with NYC. Condos are simpler to qualify for and to rent out, but they tend to be more expensive. Another key factor is the monthly building charges. Those have more to do with the co-ops finances than the size of the apartment or the amenities.

Even with all of that– there are appealing studios in the 300K range…check out this sweet sunny studio. Parents who are buying for an adult child or people wanting a second home in the city should discuss those plans with an agent.

So while buying still requires a down payment and a vision of your future, if you are moving to NYC it may actually be the more sensible and rewarding option.

Occupied vs Vacant: why the timeline for renting has changed

So many things you need to know for renting an apartment are pretty consistent.

One thing has really changed this year.

How apartments are shown and how far in advance you should start looking for a straight rental. (Renting a co-op or condo is different.)

Back in 2019 I used to beg people to wait until about 3 and a half weeks before they moved, and not a day sooner.

We were primarily visiting VACANT apartments, and landlords want vacant apartments rented ASAP. People who looked to early found few options for their move date. Showing empty apartments is easier.

BUT. Few apartments are vacant these days. It also used to be by waiting until 2 weeks before your lease start you could gobble up some concessions. The short time line was power.

So now there are are two options. If you are looking at occupies exclusive listings, in hot neighborhoods, you may be looking at things that are coming vacant in 5,6, weeks or more. 3 weeks used to be an ideal time table, now its cutting it a little close.

CONVERSELY, if you are looking at a VACANT apartment, that landlord expects someone to start paying rent in the next 2 weeks. If you are working with an agent representing you, make that clear. Nothing is more frustrating than taking someone to the right apartment but having it slip away because they want to wait too long to start a lease. I really do think the key to this market is being flexible on move dates.

Again if you are renting a co-op or condo the time table is much more driven by that buildings approval process. Again a different sort of flexibility is key. Happy hunting! Suzanne

NYC Rental Real Estate Agent: Why Pressuring People is Dumb

Always be closing!

You have heard that motto. The most important part of a sale is making sure it happens.

But I think in real estate pressure doesn’t work. I see people do it, I kind of admire the moxy, but it is not for me.

If you are looking for an apartment right now you are under enough pressure. Apartments are renting crazy fast. Often it only takes one hour of showing. If you have not looked in a while or are new to NYC, buildings that don’ have elevators or dishwashers may be a shock to your system.

When you pressure people, deals fall apart. I truly want people to only apply for the places they want with the terms they are willing to close the deal with.

Somewhere out there is an article saying you should negotiate after you put in your application. IGNORE THAT ADVICE. That is the surest way to lose an apartment you want. You should ask for any concessions, special requests, and a specific move date when you apply, not after.

I keep this blog going in the hopes that apartment seekers will be better informed.

I look for people who are confident the apartment is right for them and are want to close the deal.

If you are unsure about your roomate, or your guarantor isn’t sure they want to be responsible or you need a corporate guarantor like Insurent, or you are not sure you really want to move, figure out those things before you start making appointments and applying.

NYC 2022: Rental Season Strategies

So “rental season”started early this year. After a winter of low supply/high demand now at least there is inventory. But I would say traffic is a month ahead of 2019. I feel like we are at the end of April not March.

If you are relocating to NYC my number 1 tip.

BE PREPARED BEFORE YOU HUNT

If you are working with a tenants’ agent they may have sent you a list of what most landlords ask for. The best thing you can do is look at the required paperwork, income, and check your credit. Landlords can be choosy, so you want to make your side as polished as possible. If you are representing yourself have everything ready to go. This means guarantors too. Your parents in Peoria, or Plains, or Portland may be surprised at the level of documentation renting an apartment in NYC requires. It’s that not far off from qualifying for a loan.

HAVE YOUR TEAM READY TO GO

So 2 years ago we were doing tons of remote deals. And if you are working with a luxury building, it may be just fine to work remotely with an agent. If you are looking at walkups, or your budget is tight it really pays to have all the tenants at the showing, making a good impression, and being able to decide together. I have had listing agents tell me that a clients physical absence cost them the apartment. Again if you are looking at 5K 1 bedrooms in FiDi it’s probably not that big a deal. But a 2300 1br, the listing agent will probably go with someone they met. Be watered up, wear comfy shoes, get some sleep, don’t be hungover. AND make a nice impression on the listing agent. Say hi, introduce yourself, show you are a pleasant easy person to work with. If you love the apartment ask if they have applications and what will win the lease. Offering a bit over may make sense if you think the apartment is a deal.

BE KIND

It may seem like we have all the power, but trust me, having 100 people request to see an apartment has its own challenges. At an open house I always notice how someone treats the other people there. That kindness and consideration stands out. Also at this point most apartments on the market are OCCUPIED. This means you are in someone’s home. They may only want to show it at certain times. This can be tough when you want to visit a lot of places. Show respect for the tenant and their belongings. Backpacks are the devil if you are a vase.

BE FLEXIBLE

Move dates are a big deal when everything is so busy. It may make things a lot easier to have an overlap between the move out and start dates, or a mover who uses storage. Also if the first of the month falls on a weekend you may have to wait until a weekday to move in. If an apartment is vacant, that landlord wants a lease that starts asap, not a month out. You may need to be less rigid on location, or having a dishwasher, or something. If you are searching online and there is only one apartment that fits your criteria, you are not in good shape. You need to have search parameters that give you multiple options. Don’t get fixated on one listing!

DON’T BE SHY

If you love an apartment let the person showing it know it’s at the top of your list. Let them know why. If you have a pet or pets make sure the building policy is a good fit.

I wish I had a magic wand. I love making people happy. I HATE having to tell people no. I had a dad call me up SCREAMING because his daughter lost out on a place, and I really liked her too. It broke my heart. Yes you may have to adjust your expectations, but I promise if you are qualified and put in the work it will turn out ok.

Happy Hunting!