Renting an apartment in Manhattan is an experience that can be stressful and frustrating if you are not prepared. Finding a great apartment is only half the job - applying and getting approved is the other. So when you are ready to grab that apartment, come prepared!

Landlords generally approve applicants based on the strength and/or balance of the following:

Income - Credit - Assets - Guarantor

Income In Manhattan, most landlords will require that you earn annually at least 40 to 50 times the amount of the monthly rent. If the rent is $1500 per month, you may need to show approx. $60,000 in annual income. In the outlying areas of Manhattan (Brooklyn, Queens, NJ, etc.) most landlords will require less income, approximately 30 to 35 times the amount of monthly rent. Roommate/Shares and Sublets may require less annual income as well.

Grants, Scholarships, Stipends, Fellowships/Assistantships, and other awards are considered income. Loans, although currently a source of income, are essentially future debt. Many landlords may look less favorably on loans as income without additional qualifying support (guarantor or paying multiple months rent up-front).

Credit
Having good credit is important, and it is a major part of the approval process. Landlords use your credit rating and history to make an assessment concerning your bill paying habits and responsibility to debt. If your income is lower than the customary requirement, a higher credit score (e.g., 700 or more) will help. If your credit score is lower (e.g., 550 or less), it can hurt your application and prevent you from getting the apartment.

Bad Credit - a few late payments in your past may not hurt your credit but these issues will:

• A high revolving balance is not good.
• Past due payments that are still outstanding.
• Delinquencies and collections.
• A Housing Court ruling.

Assets
Additional assets will help your application. Many students may not have enough income to meet the customary requirements, and either have weak or no credit history at all (this is particularly true for international students). If you have 6 to 12 months of rent available in a bank account (loans, parents, grants), landlords may accept multiple months of rent or security deposit paid in advance as an alternative way of approving you (*Make sure this arrangement is in writing*). If your credit is very poor, some landlords may still refuse to rent to you.

Guarantor
For students or young individuals who do not meet the income, or credit requirements, a guarantor might be the solution.

A guarantor (co-signor) is someone who is willing to take the financial liability of your lease if you are unable or unwilling to fulfill it. The guarantor is generally not required to pay anything in order to get you approved; however by agreeing to guarantee you, they are responsible for all terms of your lease.

If you are sharing an apartment, it is important to understand the guarantor is ultimately responsible for the entire lease. Landlords may accept multiple guarantors, however, they are not legally obligated to do so.

If a landlord is inclined to refuse an application based on poor credit, the decision to allow a guarantor for approval may depend on how bad the credit is and how strict their policies are. Sometimes a combination of guarantor and extra security are needed.

A guarantor does not have to be a relative. Most landlords prefer the guarantor to live in the Tri-State area; New York, New Jersey or Connecticut. It is best to prepare your potential guarantor by advising them of what documents will be requested of them. Timing is critical in the New York rental market, and your guarantor’s cooperation will critical.

Guarantors may be requested to provide the following information:

• Guarantor application.
• Guarantor Agreement.
• Social Security Number - Credit Report (Landlords generally run credit).
• Proof of income showing double the income requirements of an applicant. Annual income of 70-80 times the monthly rent.
• Tax returns – first page and signature.
• Letter of Employment - on company letterhead (position, salary, and start date).
• CPA letter - stating qualifying income.

Guarantors usually do not have to be present at lease signing.

Speak to the head of your NYU department about what assistance they can offer. If you are at NYU on a grant/scholarship, speak to Financial Aid about assistance offered by scholarship/grant organizations.

*A note for international students: Landlords may ask for three or more months' deposit on an apartment if you do not have a guarantor who is employed in the United States.

The next apartment you see may be the perfect one for you. In order to secure it, you should be prepared with the necessary paperwork when that time comes!

Things to bring

• A checkbook, preferably for an account at a local bank.
• Approximately $200 in traveler's checks or cash. You will need money for application fees, deposits, transportation, change for telephone calls, etc.
• An ATM card and bank statements for savings and checking accounts.
• Photo ID (e.g., driver's license).
• Proof of Income (applicant/guarantor) – Letter of employment, Tax Return, Financial Aid (scholarships, grants, loans).

Paperwork

• Application: Once you have identified a suitable apartment, you will fill out an application form. Most owner/management companies will have a form available; however, if you are working with a broker, the broker may have a general application form for you to complete. There is usually a processing fee ranging from $25-$150 which almost always non-refundable and includes the charge for checking your credit.

• Letter of employment (if working): Must be on official company letterhead. The letter must state your position, length of employment and start date, your annual income and the letter must be signed by a person authorized to verify the information provided. Guarantors may also need to provide this letter.

• Pay stubs: A copy of your three (approx.) most recent pay stubs.

• Tax returns: If you (or guarantor) are self-employed, or your income is derived from varying sources, you may be required to provide a copy of your most recent federal tax return. Customarily the first page and signature page will suffice. If your income has changed considerably in the last year, two years of tax returns may be required.

• Letter from CPA (Certified Public Accountant): Usually requested if self-employed.

• Bank statements: You may need to show at least two recent monthly statements from your checking, savings, or other financial accounts.

• Identification: Landlords may take a photograph of you at lease signing, or require a copy of a photo ID (e.g., license, passport, and/or school ID).

• Credit reports: A credit report will be run on every applicant and guarantor. Your social security number will be requested in order to run the report. Although it is possible to obtain your credit report on your own, it is usually not accepted by landlord. The charge to run a credit report (usually included in application fees) ranges from $25-$150 depending on the landlord.

• Landlord reference letter: This may not be required, but having a positive reference from your previous landlord, can only help. You will customarily be requested to provide the name, address and phone numbers of your previous landlord.

• Professional/Personal Reference Letter: Many landlords will not require letters of reference; however, if your application is not as strong in other areas, references can make a big difference.