Are you planning to rent an apartment in New York? Great news!
Well, you need to do a reality check on the amount of paperwork and cash required. Fees differ based on building type and the amount paid to the broker. In addition to that, you may confront various other costs to secure the flat. New rental laws passed last year has put a few limitations on the amount that the brokers and landlord can squeeze from you. However, you still need to pay many other upfront fees.
All set to finalize the deal on an apartment? Then you need to be aware of all the expenses that will come your way. In this post, let’s find the various fees that you will incur as you search for a flat in NYC.
Application fee
Once you selected an apartment in NYC for rent, then you need to submit an application. Well, this form isn’t free.
Good news! The latest NYC rental regulations have made this fee cost-friendly. The maximum amount will be around $20. Earlier the application fee was more than $300.
Good faith deposit:
Hearing it for the first time? It would help if you acquainted yourself with the New York real estate jargon.
Good faith deposit is the payment that some landlords require from those who submitted the application and are serious about buying the flat. You can pay this amount either through a certified bank check or via money order. Cash payments are not taken. The deposit amount usually ranges between the rent of one month and $500.
In case of acceptance of the application, this deposit will handle some of the other costs. If rejected, the landlord will return the money back to you. Go through the fine print and find out from your agent how this deposit works.
Rent for the first month:
It’s a must in NYC to pay the rent of the first month upfront when you move into the flat. Do it’s a normal process, it may look like a considerable amount when combined with the other expenses. That’s the reason why you need to calculate the figure you can afford each month before submitting the application form.
Rental insurance fee
In some buildings, it’s mandatory for the tenants to pay rental insurance. You also have to provide the paperwork during the signing of the lease agreement. The insurance amount won’t cost you a lot. The annual amount ranges between $100 – $150. However, it’s a cost that will add up to your budget.
Security deposit
It’s the upfront amount you pay for covering up any damages incurred to the flat. The recent NYC rental regulations have capped that price to one month’s rental amount. Landlords are not permitted to ask beyond that rate. Moreover, your landlord has to return the security deposit within two weeks when you leave the flat. This gives you the assurance that you will get this amount back sometime in the future.
Broker fee
Brokers’ fee is entirely separate from the other costs. Usually, it ranges between a monthly rent to 12 – 15% of the total annual rent. The current average rent for a flat in Brooklyn is $3015 and $3500 in Manhattan. So the broker fees for New York would be more than $6000.
Even though the cost is high, brokers don’t do their work free of cost. Regulatory boards have come up with plans to cap the broker fee in order to address the overall upfront expenses. However, this move faced a lot of resistance from the real estate sector and is still on the discussion table.
Some brokers say that the current market for rentals is competitive. Hence with 15% brokerage fees, they are fully prepared to assist the clients. They work to provide the clients with detailed information about the paperwork they require. They also shortlist the various apartments that suit their requirements. They negotiate the rent on behalf of the client and be present when during the lease.
Are you planning to get a broker? Then find out if the landlord is paying them a particular amount to source tenants for them. If so, ask them to deduct it from the brokerage fees. For slow rental markets, you will have more advantages when it comes to the brokers’ fees. Based on seasons like the winter months, you will have higher negotiation powers.
Note that brokerage fees are a single payment. You don’t have to keep paying it each time you renew your rent or get a new roommate. Also, make sure that all the payments made are fully certified payments. You can’t pay using cash or checks.
Pet fees
The security deposit does not impact pet ownership. Planning to move to a pet-friendly flat along with your canine or feline buddy? You needn’t pay more than one month’s deposit. To handle this, lessors are including pet fees along with the rent. This was initially $50 for a dog on a monthly basis but hiked to $200 recently. This is because the owners are more concerned about the dogs damaging the floors and doors.
Earlier, this deposit was refundable entirely or partially. However, in recent years its included as extra rent. Irrespective of the condition or behavior of the flats of your pet, the amount is no longer refundable.
Amenity fees
For new and luxurious properties, tenants may have to pay for the end of these provided. Some real estate companies separate the cost to keep the rent at an affordable rate. Based on the Building facilities, You may have to pay those fees on a monthly or annual basis.
Late rental charges
Once you start staying, if you become 5 days late in paying the rent, you may have to pay late payment fees. If charged, it won’t exceed $50 or 5% of your monthly rent. You may have to pay whichever amount is less.
Move-in Costs
Earlier huge residential rentals charged an amount to use the lift while moving your furniture on the move-in date. The cost ranges from $500 – $1000. As per the new rental regulations, this is possible only if it’s a cost paid to the condo or coop board.
These are some of the costs you will come across while renting a flat in NYC. You may also have to pay for cleaning and other moving services. In case you find that you are unfairly treated, you can register a formal complaint against the landlord or broker.
Feel free to contact our brokers for more information!