Eileen Hsu (許小姐) Manhattan NY Real Estate

Renters Guide - 2008

This is a step-by-step, easy to follow outline of the entire process of renting an apartment in New York City. The rules are different here. The items which we categorize as "necessary" in this guide are in fact crucial. We can guarantee that if you do your homework, the process will flow smoothly for you. Assume that there are no exceptions to the items on these lists.

Step-by-Step Process to Renting an Apartment in New York City

1. If you are relocating, call us at (212)321-7122 to determine when to come to New York to begin your search. At that time, schedule your appointment. Your needs will be discussed, questions will be answered about the process, and you will be assigned to one of our team member best matched to your needs and budget.
2. Organize and prepare the necessary information to bring with you, including:
   • Letter of employment and salary verification (include start date if not yet employed)
   • Bank account numbers (checking and savings), credit card numbers
   • Names, addresses and phone numbers of previous landlords
   • Names, addresses and phone numbers of accountant and attorney, if applicable
   • Names, addresses and phone numbers of personal and business references
   • Tax returns
   • Pay stubs
   • Expected bonus (verification from employer)
   • Additional sources of income with verification
   • Personal identification with photograph - driver's license or passport
3. If relocating, prepare the necessary funds before coming to New York. Landlords will not accept personal or out-of-state checks. They require certified funds. Anyone renting or relocating must:
   • Try to establish a New York bank account before you begin your search. If this is not possible, bring the necessary funds with you.
   • Bring enough traveler's checks to cover the cost of two (2) month's rent (which must be converted into CERTIFIED CHECKS). This comprises the first month's rent and one (1) month's security deposit.
   • Bring funds to cover the broker's fees if your company is not paying covering that expense. Brokerage fees are paid by you, the tenant, in New York City. These fees are due upon signing of the lease unless your employer is paying the real estate commission for which they will be billed directly.
   • Bring funds to cover a Credit Check: $25 to $50, which can be paid by personal check.
   • Bring funds to cover possible move-in/move-out fees (See Co-op/Condo Funds Needed).
4. The day of your appointment you will meet with us and you will be taken to each apartment that we have scheduled for you to see.
5. When you have made your apartment selection, you will be asked to fill out a rental application and one or more miscellaneous documents. We will negotiate price and lease terms for you. Upon acceptance, a credit report will be done, and your references will be checked.
6. Leases will be signed and checks presented.
7. We will assist you with settling in comfortably once the lease is signed and the move in date established.

CALL US at (212)321-7122 or Email us if you are relocating and thinking of renting an New York City apartment today!

Glossary of Terms New York City Terminology

Familiarize yourself with the following terminology. It's almost all unique to New York City. It's also important to know that we speak in "number of rooms," as well as using the definitions below. A room in Manhattan must be at least 100 square feet and have a window...except in the case of a kitchen. Most kitchens are considered rooms, unless they are Pullman types, which would be found as part of the living room. And we don't count baths as rooms. So, a Three Room Apartment would be comprised of a Living Room, a Kitchen and a Bedroom. A Four Room Apartment would have a Living Room, a Kitchen, Two Bedrooms, or One Bedroom and a Dining Room. You'll hear the term Half of a Room, e.g., Three And A Half Rooms. This means that the Living Room has an alcove adjacent to it which is not quite the size of a true room, or in some cases it may mean a foyer large enough for dining. Review the list below, and check with your agent for further clarification.

STUDIO One or two rooms with combined living and sleeping area. If the studio is one room, the kitchen will be of the Pullman variety. If it is two rooms, the kitchen will be separate.

ALCOVE Alcove is an area adjoining the living room space of an apartment. It is generally less than 100 square feet and is not considered a full room, but often called a half room. It can be used as a "dining alcove" or "sleeping alcove". Depending upon size, it may actually be "walled off" to create an additional bedroom.

ALCOVE STUDIO - This is either a one and a half or two room apartment with a separate alcove, often L-shaped, which can be used as a sleeping area.

JUNIOR OR CONVERTIBLE This is an apartment with an alcove off of the living room which can be converted into a bedroom or used for dining. A Junior 4, for instance, would be a three room apartment (living room, kitchen and bedroom) which has the potential to be four rooms by using the alcove space to create an additional room.

DUPLEX In New York this means an apartment with two floors or levels, not two apartment units.

LOFT AREA This is an additional space created in apartments with very high ceilings. The loft area is constructed above the traditional living area, accessed by a staircase or ladder, and used for extra storage, sleeping or living space (e.g., a mezzanine).

CLASSIC The word "classic" is usually followed by a number indicating the number of rooms in an apartment. It is generally associated with pre-war apartments that meet a criteria of room numbers and design for buildings of that period. However, a "classic" can exist in a post-war building, assuming it follows the same guidelines. As an example, a "classic six" is comprised of a living room, dining room, kitchen, two bedrooms, and a maid's room.

Glossary of Terms Types of Buildings

Brownstones or Townhouses These are typically 4 to 6 story buildings built in the 1800's through the early 1900's. They are either single family houses or have been converted over the years into multiple apartments. As a single family home, a townhouse or brownstone offers buyers privacy and the ability to purchase without the cooperative board process. Some apartments in townhouses can have grand living spaces and, therefore, will be quite expensive. Generally, these buildings afford more "charm", with features such as gardens, fireplaces, beautiful floors and ornamental wood moldings. In almost all cases these buildings will not have a doorman. One can also purchase a coop or condo unit in a townhouse building. The term "brownstone" refers to the type of material used as facing on the front of the structure.

Pre-War Buildings Prewar buildings are those built before World War II. These buildings are usually ten to twenty stories, provide spacious apartment lay-outs, gracious architectural amenities with features such as larger rooms, fireplaces, hardwood parquet floors and higher ceilings. These can be doorman or non-doorman buildings.

Post War Buildings These buildings were built between the late 1940's through the 1970's. They are generally hi-rise and are constructed of white, red or brown brick. Most will have doormen. Postwar apartments may actually afford more living space than their prewar counterparts in studio, one and two bedroom sizes. They have ample closets, live-in superintendent and laundry facilities.

Hi Rise Full Service Buildings These are generally associated with new construction or are apartment buildings that were built from the 1980's through the present. They are typically condominiums, twenty to forty or more stories with doorman and concierge services. Other amenities often include: health clubs and swimming pools, valet services and parking garages

Elevator Buildings This description is usually reserved for a non-doorman building that is six to twenty stories tall. There is usually an intercom security system, and some may have video security. These buildings could fall into either the pre-war or the post-war category.

Loft Buildings These buildings either were previously built for commercial or manufacturing purposes and are now used for residential living spaces or are newly constructed as loft buildingsThe spaces typically offer higher ceilings (9 feet-20 feet), open spaces and original details such as supporting columns, tin ceilings, etc. They are usually found in Greenwich Village, SoHo, TriBeCa, Chelsea, Flatiron, Nolita, and lower Manhattan and often do not have the services of a doorman.

Walk-Up Buildings This is the least expensive type of housing, and the quality can vary widely. Usually these are 4 to 5 story buildings with no elevator, hence the term "walk-up." They were originally constructed as multi-family housing and lack the charm and elegance of traditional brownstones or townhouses.

Fannie Maeyesterday informed the banking industry that it would raise the nationwide pre-sale requirements for new co-ops and condominium buildings to 70 percent starting March 1, one of several changes designed to reduce the amount of risky consumer loans in the market...

GASP! for all the new developments all of United States, and the outburst of tears from New York City New Developments! It is just like yesterday that Manhattan New Development was the hottest item on the Real Estate scene, buyers lined up outside of the sales office waiting to get in, everyone is anxious to get on the 'preferential' or 'friends and family' list of the developer to get an apartment at initial offering price. Now, merely about 6 months later, the new development has becoming the last item on any buyer's list... The New Development ranking goes from #1 to the lowest of the low. Will NYC New Development ever make a come back? (hello Britney!)

With this new lending rule in place, how is any buyer going to buy in New Development,

not only with the typical new development risks, how is one ever going to be comfortable signing that contract not knowing when and if this development will hit 70%?

Or if they will ever be able to move in? What kind of buyer will take this type of risk?

Citibank and Chase, two largest lender in Manhattan Real Estate had increased a level of scrutiny on all buildings, the lending policy changes on the daily, almost hour by hour basis... It is not only affecting lending in New Development, it is also hurting the buyers who are buying the resale apartments!

As an active agent here in Manhattan New York City, part of my business is selling New/Pre Construction Developments to both oversea and local investors, with this piece of News in hand, even our cash rich buyers are shying away from New Developements because the domino effect that will have on their purchase, is this good for the market?

Less New Development and level off the inventory? Is this a good Market Correction?

Perhaps this is the Real Estate Darwinism?

Or the Real Estate Survivor?

Steps to Purchasing an Apartment

The steps to purchasing a co-op or a condominium in Manhattan are very similar.

To give you some idea of the timeframe, Let us assume that you have found the property on which you wish to place an offer and that you have spoken to a bank or mortgage broker (if financing) to determine a comfortable financing price level.

1. Offers are made orally or through emails in New York City. When you have found the right property, a bid or offer will be placed through your agent. They will convey your offer to either the seller's agent or to the seller directly.
2. The seller may "counter" your offer. This will begin a negotiation process that will eventually lead to a "meeting of the minds," at which point price, terms, and closing date have been agreed upon.
3. A real estate attorney is required in all property transactions in New York City. Contact an attorney familiar with real estate in Manhattan to represent you. The seller's attorney will begin preparation of a contract of sale, and during that time your attorney will begin to examine the financial condition of the building in which you wish to purchase. Your real estate agent can assist you in finding experienced attorneys.
4. After your lawyer concludes that the financial condition is satisfactory, that the by-laws of the building are acceptable to you, and that the contract of sale is also acceptable, your attorney will allow you to sign the contract. At that time you will usually be required to present a deposit of 10% of the purchase price. The contract plus the deposit will then be forwarded to the seller for signature . This money will be held in the seller's attorney's escrow account until closing. It is important to note that until all parties have signed the contract, and it has been delivered, the seller can still entertain and accept other offers.
5. If financing, you should move forward with your loan application. We as your real estate agent can assist you in finding a mortgage broker . It is advised that you pre-qualify for a mortgage with a brokerage firm prior to beginning your housing search.
6. You will, by now, have received from us the board requirements and application materials. The application materials can be similar for a cooperative and condominium. However, the actual process is quite different. You will need to complete all of the required materials which typically include: an application, a financial statement signed by a CPA, all requisite support for your financial statement, three years of tax returns, bank statements, letters of personal and financial reference, letters of professional reference, the contract of sale, bank documents (if financing) indicating that your loan is in place, etc.
7. When your "package" is finished, it will be reviewed by a company Manager, and then, assuming it is complete, it will be forwarded to the managing agent for review. Upon determination that it is in order and that credit checks were acceptable, it will be forwarded to the Board of Directors. No applications will be accepted by a Managing Agent unless they are complete.
8. In the case of a cooperative, if your application meets initial approval, you will be invited to be interviewed by the Board or by an interviewing committee. This is a serious matter and not to be taken lightly. It should be treated as a business meeting.
9. After approval by the Board, you are ready to begin planning for a closing!

In the case of a condominium, there is generally no formal interview. Your application will be reviewed, and if all required materials are included and in order, an approval is typically granted.
The entire process can move quickly in a condominium, and assuming a loan can be secured in a timely fashion, one can move from contract to closing in about 60 days. However, the cooperative process is more involved, and 60 to 90 plus days is not unusual.

To Read More About Manhattan Market and Purchasing Steps, please click links below

Manhattan Buildings (Condo, Co-Op, Townhouse)

Buying Power in Manhattan

Financial Report of Each Manhattan Building

Let us be your resource to Manhattan Real Estate Market. Call us or Email us for an intelligent and private conversation...! (212)321-7122 or (917)837-8869.