How much rent can I afford?
As a guideline for NYC, you can expect to spend approximately 25% – 35% of your gross annual income on rent. If you earn $100,000.00 per year, plan to spend $2,500.00 or $30,000.00 on rent. Another way to calculate your requirement is that your annual earnings should be equal to 40 x the monthly rent. Some landlords may require an income equal to 50 x the monthly rent. In the event that the owner requires a guarantor, he or she is required to show an income of 80 x the annual rent.
Will I need to give a security deposit?
Yes. You will always be required to provide at least one month security deposit. The security deposit is returned after the apartment is vacated if all the terms and conditions are met. Please note that the Security Deposit should never be used as your last month’s rental payment.
What paperwork will I need?
Pay stubs: We always require proof of income and the best form is a copy of your three most recent pay stubs.
Bank statement: Two most recent Bank Statements with your name on the Statement. Statements from your checking account, savings account or any financial institution should be sufficient.
Employment Verification: We will require a letter from your employer stating employment period, position held and salary level.
Identification: Most Landlords require a copy of your photo ID, which can be a driver’s license, student ID, or passport.
In addition to the above.
Tax return: A copy of your most recent federal tax return may also serve as proof of income. A tax return is usually required when a person is self employed of if you are basing your income on several different sources. Additionally, a letter from your CPA on company letterhead verifying your income for the last two years and the nauture of your business will also help to satisfy this requirement.
Bank account numbers: Are required on all application forms.
References: If you have an Accountant or Attorney you may need their numbers to put down as a reference in addition to work colleagues or Friends so make sure you have their contact information handy.
Landlord reference: is required on the application so have the name, address, and phone number of your current or previous landlord ready. If you have a Landlord reference letter please bring it with you when applying for an Apartment.
Will you require a credit check?
Yes. Credit reports are always run on every applicant and guarantor. Unfortunately credit reports obtained on your own are not accepted. A major part of the approval process is based on your credit history. So what is bad? A few old late payments are usually ok. A high revolving balance is not good. Past due payments that are still outstanding are bad. Delinquencies and collections are very bad. A public record (your day in court) is bad and a Landlord-Tenant record is the worst! If you think your credit may be an issue please discuss this with us prior to viewing any apartments so that we may know how to best assist you. Advising your agent of any issues or potential problems will allow your agent to properly prepare you for the process. Different landlords have
different ways of dealing with “credit issues”. Some will allow you to increase the security deposit and/or request a guarantor. Others may reject the application completely.
In any case, you will need guidance to save you time money and a lot of frustration.
How much does a credit check cost?
This amount depends on the Landlord. We at Saldo charge $80.00 per person per credit check and this fee is non refundable. Credit/housing checks are run prior to submitting the application.
What is a guarantor?
A guarantor, also called a co-signor, is someone who is willing to guarantee your lease. The guarantor is responsible for all terms of your lease and guaranties not only your share of the rent but the entire lease – if in a share situation. The guarantor will be required to disclose financial information in order to support the application.
Do I need a guarantor?
Yes. If your salary doesn’t quite equal 40 x the monthly rent you will require a guarantor.
Yes. If your credit check reports “negative” issues then the landlord may request a guarantor.
Yes. If you have only recently commenced employment or moved into the city then the landlord may request a guarantor.
Who can be a guarantor?
A guarantor does not have to be a relative. Some landlords require that the guarantor resides within NY State whilst others will accept a guarantor from out of state. Try to prepare your potential guarantor by speaking with them and advising them of what they will be asked for. 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 excellent credit and double the income requirements of an applicant. If an applicant is required to show an annual income of 40-50 x the monthly rent, a guarantor is required to show an annual income of 80-100 x the monthly rent. The documents required are similar though usually all that is needed are proof of income (usually by providing tax returns or a CPA letter) and a credit report. Guarantors usually do not have to be present at lease signing, but the Landlord will require a notarized signature from them.
Application: The first step will be to complete an application form supplied by your Agent and to submit all the required paperwork.
Application Fee: In order to process your application, we require an Application Fee in the amount of $400.00. This Fee, in the event that the landlord rejects your application, (with the exception of a Coop or Condo) will be returned to you immediately. Upon the landlord accepting your application this deposit is deducted against the broker’s commission due at lease signing.
Submission: Once all the required paperwork is received we will run a credit check on all applicants including the guarantor if required. This we submit for the landlord’s consideration which generally takes 24 hours to receive an answer. In some instances we can receive an answer within an hour or two. And on a rare occasion the approval process could take up to 3 – 4 days. Rest assured we will always remain on top of the Application process and keep you well informed every step of the way.
Lease Signing: When you sign a lease you will need to have funds available in the amount of your rent and security. Be prepared to provide this in a certified form – Bank Checks, Certified checks, or Money orders. Personal checks and cash are not accepted.