August is traditionally one of the most intense months for the rent market in New York. The city has a strong increase in demand, driven above all by business transfers, by students beginning the new academic year and by families looking for home before the resumption of autumn activities.
For those arriving from abroad, finding an apartment in New York can present some additional difficulties. In addition to the strong competition of the market, many international tenants face an obstacle that they often had not foreseen: the absence of an American financial history.
Having a good salary, savings or a consolidated career in your country is not always enough to meet the criteria required by American owners. In the United States, credit history and credit score are fundamental elements in the evaluation to be able to rent an apartment.
Obviously this does not mean that finding home is impossible, but those arriving from abroad must know the functioning of the market and prepare themselves strategically.
In the New York rental market, speed is very high. I happened several times to show an apartment in the morning and, a few hours later, receive the call of the owner who informed me of having already received several offers. For this reason I always recommend to my customers to prepare their ‘dossier’ before even starting the search.
Having ready the employer’s letter with location and salary, passport photocopy, visa, bank statements, any references and all available financial documentation can make a big difference. For those arriving at work, the company can often help by providing official letters or providing relocation services.
One of the most important things I try to explain to my customers, especially those coming from abroad, is that the New York rental market has very different rules than other cities. The availability of apartments is historically limited, especially in the most popular neighborhoods and in periods of higher demand such as summer. This creates a very competitive market.
For this reason one of the most common mistakes I see is coming with a list of requirements too rigid: the exact neighborhood, the precise metrature, the high floor, the view, the ideal budget and maybe even a very specific entry date. Of course it is important to know what you want, but in a market with little availability being too selective can mean losing excellent opportunities.
The role of an experienced broker is not only to find available apartments, but to help the customer understand what features are really indispensable and where it can be more flexible.
Sometimes the best apartment is not exactly what matches the initial list, but what offers the best balance between location, building quality, price and lifestyle. Flexibility does not mean to be satisfied. It means knowing your priorities.
If for you it is essential to live near the subway, perhaps it is worth being more flexible on the metrature. If space is the priority, it may be necessary to consider a different neighborhood. In New York the winning strategy is not looking for a house that has everything, but finding what makes your daily life better.
One of the first things to understand when looking for home in New York is the rule of “40X(Times the) Rent”. Most owners require that the annual income of the tenant is at least forty times the monthly rent.
Let’s give an example: for a $5,000 apartment per month, you normally have to prove a GROSS annual income of about $200,000. For many international professionals this is not a problem. The difficulty arises when, in addition to the salary, lacks an American credit history. In these cases a guarantor may be required, i.e. a person or a company that guarantees the contract.
A personal guarantor in the United States generally has to show an income of approximately 80 times the monthly rent and often has to live in the metropolitan area of New York or in the tristate (NJ Connecticut and NY)
This is one of the reasons why many foreigners cannot simply use a family member in their home country. Fortunately there are specialized companies offering guarantees for international students and professionals. It is a very common solution for those arriving in New York without a credit history, but with a job, savings or a solid economic support.
A house is not just what happens inside the four walls. One of the first questions I ask my customers is: “Do you really know the neighborhood? ” Many times the answer is: “I saw it online.” The Internet is a great tool, but New York has to live it.
If you have a chance, spend a few days in the area you are considering. Try the way to the subway, spend the shopping in the nearby supermarket, walk in the evening, observe the noise of the road and the atmosphere. These are details that no photograph can tell.
Real estate ads in New York have some peculiarities that can create confusion. One of the most common examples is the “net effective rent”. An advertised apartment at a lower price could include free months distributed in the contract, while the actual monthly fee could be different.
You also have to pay attention to the description of the rooms. Not all that is called “bedroom” is necessarily a legal bedroom. In New York a real room must comply with certain requirements, including the presence of a window.
One aspect that many tenants, especially those coming from abroad, tend to underestimate is the quality of the management of the palace. In New York you are not only renting an apartment: you enter a building, with a management company, rules and a specific way to manage the relationship with tenants.
A broker knows the market from this point of view. He knows what Management is efficient, which responds quickly to problems and what buildings have a good reputation among tenants.
This is especially important for those who sign the first one-year contract and already think of the future. In market rental buildings, in fact, renewal can be influenced by market conditions and landlord policy. An apartment that looks like a great deal the first year could become less convenient at the time of renewal if the required increase is significant.
The role of a good broker is not simply to find an apartment available, but to help the customer make an informed choice, also evaluating the quality of the building and management in the long term.
When I walk a client to see a house, I don’t just look at the apartment. I observe the palace. How is the entrance? Are the common parts treated? Does the elevator work well? Does the building look well maintained? They are small signs that tell a lot about building management.
Once you arrive in the United States, one of the most important steps is to start building your credit history. Open a bank account, get a credit card and use it responsibly helps create that financial reputation that over the years will make it much easier to rent, buy house or access other services.
After so many years in the New York real estate market I learned that finding home does not only mean finding an apartment. It means choosing the neighborhood where you will take coffee in the morning, the road that will become familiar, the park where you will take a walk on Sunday.
For those arriving from abroad the route may seem complicated, but with the right preparation, flexibility and good knowledge of the market, finding home in New York can become the first step towards a new life.
Because in the end the perfect house is not just what you see in the photographs.
L’articolo Rent a house in New York: practical guide for those arriving from abroad proviene da IlNewyorkese.
