When to Contact an Agent

When YOU ARE READY! Listen, brokers/real estate agents want to help you as much as possible. However, this is New York and apartments go quicker than hotcakes on a Sunday morning. With that said, no agent wants to show an apartment to a client who is just looking. You can look online! Do some research, request photos, google more photos, and visualize.

Nothing feels like a waste of time more than taking a client out, loving an apartment, but not having the above required documents ready. It's not just documents either. Make sure your credit is good (typically 680+), your income is 40x your rent/budget, your savings is ready for withdrawals, and emotionally you're ready to let go (have a strong motivating factor). Once I receive an inquiry on a unit I call my client to stir up a conversation regarding what their ideal apartment is and try to find a motivating factor as to why they’re moving. Below is a quick questionnaire I mentally like to have answered throughout my conversations with a new client.

• What’s your reason for moving?

• When is your ideal move-in date?

• Who is the apartment for?

• Do you have any pets?

• What is your max budget?

• What areas are you interested in?

• How do you feel about walk-ups?

• Landlords require tenants to have a credit score of 680+ and an income of 40x the rent. Would you be able to satisfy that requirement or would you be using a guarantor?

 Having Realistic Expectations

New York, New York…so good they had to name it twice! This is a big rich town filled with convenience, fast paced environments, over populated streets, celebrities, opportunities, and let’s not forget to mention it NEVER sleeps. Remember this in all real estate matters!

New York isn’t cheap…matter of fact its miles away from it. And it’ll never be the place where your 450 sq. ft. apartment is worth it’s price. You get what you pay for but then you also don’t get what you pay for. I call it New York culture, it’s just quite inevitable at this point.

When I have that initial conversation with my clients regarding their ideal apartment I realize that some people understand New York living, while others still think they’re back home in their 3,000+ sq. ft. house in the middle of Utah. No-no honey, not here! You want a large living room area that can hold a couch, love seat, and a mini bar…with an eat-in kitchen, and bedrooms that can accommodate a king-sized bed, dresser, vanity….with a bathroom in the master bedroom? Oh, and let’s not forget you want that kitchen with stainless steel appliances, a dishwasher, an island with marble countertops, and you need a washer and dryer (let me guess), in your unit too?

Sis, my time is limited.

It’s possible of course. We call this a LUXURY here in New York. But can you pay $3,500+ for it (and that’s just a studio-1 bedroom)? Ok then…let’s be realistic!

The Pandemic has put the market in a chokehold. Rent is at an ALL TIME HIGH, inventory is at an ALL TIME LOW, and it’s all becoming a BIDDING WAR! Certain things you either have to deal with or deal without. Maybe you need to move a bit more North of your favorite location in the Upper East Side, or maybe you can’t have that elevator and have to do a 4 floor walkup. Sometimes you may have to just live in a 300 sq. ft. studio or you might not have a doorman and just have to pray UPS didn’t leave your package outside near the bystanders. If you’re coming to New York to LIVE then just focus on the living part and not where you’re living at. Trust me, trying to manage the two will drive you even more nuts.

So now I’ve heard your list of things that you want in a man…I mean a home…and I’m ready to start my search. I’ll contact who I need to, to ensure that the units are available to view and then circle back with you to make sure you’re available to view as well. From here, we’ll await the day to go out and view the apartments together or we can do a video tour. Hopefully they’re good, but I’ll make sure that I’ve done my research well enough that you’re ready to apply to at least one.

First things first. Any salesperson or broker will have written/verbal consent of two things:

• An Agency Disclosure Notice

• Rental Commission Agreement

An Agency Disclosure notice is a form that states who your agent/broker is representing. If I am taking a client out who is looking to rent an apartment, then I am a Tenant’s Agent. If I was working for a Landlord and had an exclusive apartment to rent then I would be a Landlord’s agent. I require this form to be signed by my client (or a verbal statement to be acknowledged) before I even show them any units so that both parties can acknowledge my role within this transaction.

A Rental Commission Agreement is a notice that clarifies what an agent’s commission will be in this transaction. For rentals, an agent’s fee can be up to 15% of the annual rent. Or there can be a flat rate, which most agents typically set as one month’s rent. What an agent sets as their commission is completely up to their discretion depending on various reasons. I’ve learned the hard way that sometime’s one month’s rent is low blowing your hard work. If there’s a form, the back of this form will list all the units an agent will show their client on that given day to protect him/her and sometimes to remember what was showed and in what order the units were desired. Sometimes there can be a misunderstanding of who showed who what and a big hassle on determining who is owed commission and this form can help settle that. I require this form to be executed by the client(s) before showing apartments as well.

No Broker’s Fee …

No problem. But let me let the cat out the bag. Everyone wants a unit with no broker's fee. I mean let’s be really REAL, moving in NY is already upward 3-4x the amount of monthly rent and sometimes we want to cut corners as much as possible. I also want to let you in on a little secret. When the building or unit you’re looking at says there’s no broker’s fee just make sure you remind yourself that the broker will STILL get paid. Most of the time, buildings that state no broker’s fee are actually still responsible for the broker getting paid. It may not seem like it’s directly coming from you as a prospective tenant but in reality it is. See, the landlord isn’t always just going to pay the broker upfront to do their job and get the unit occupied. Some landlords hike the rent up to compensate the broker. So you may think the unit is $3,500 (it might be $3,000) but little do you know you could probably just pay the broker his cut and negotiate the rent down so that the landlord doesn’t have to cover that portion. Would you rather pay up to 15% broker’s fee (or one month’s rent) or would you pay maybe an additional $500+ a month over the course of your lease to compensate someone you thought you didn’t have to compensate? You do the math!

It’s not always this bad. Some situations are just honestly no fee. That’s just me, as an agent, trying to scare you. But trust me it happens more than you think.

Leases & Sub-leases

It's lease signing time!!! What do I need?

You need to relax! No seriously, so many people get frazzled and frantic when it's time to sign their lease. They don't know what to expect and it's literally such an easy process. This is what your agent is here for!

At lease signing please make sure you bring the funds. Seriously, no money…no signing. This is the time you present whatever is required of you financially:

First month’s rent

Security deposit

Broker's fee

Also, all tenants on the lease MUST sign the lease*. Please be sure that you are provided with a carbon monoxide disclosure and a lead based paint disclosure. Most Leases are standard, and you can find it online if you MUST know what it looks like. Typically you’ll be signing two at the lease signing…one for you and one for the landlord. Make sure your fully executed lease has the landlord’s signature. If not, consider it null and void (actually worse for the landlord than it is for the tenant). You can either expect this at the end of your lease signing or it will be mailed to you within 30 days.

Once signing is complete, the keys should be handed over. In some cases, landlord has arranged for the super to give you the keys at the building. It is also possible that your broker will be handing you the keys. OH! It is not required for brokers to attend lease signings, however, if you prefer the broker to be in attendance LET. THEM. KNOW!

*Due to COVID-19 and the recent pandemic, most lease signing are done electronically thru Docusign or other efficient platforms.

SUBLEASES

Subleasing is not always allowed, but if you have the option to do so I always recommend in doing that opposed to giving up your New York apartment. Ultimately (unless it’s a coop) it is up to you to find a sublessee and to approve of who can sublet your home. This process can be very annoying …similar to looking for an employee…but it can also be fun. You make it what you want it to be.

You can hike the rent up and make some profit. You can live elsewhere and rent your home because you don’t want to give up such a good apartment. You can leave the country for months/years at a time and still make sure your rent is paid and also have a place to come back to when you’re ready. Subletting has its benefits but be careful who your tenant is because it can be a possible disaster as well.

When subletting ALWAYS have a written agreement! It is still a business transaction, nothing more nothing less. The agreement is simple and may require less than your original lease. Just make sure the sublease highlights the following terms: Sublessor, Sublessee, Property, Term, Rent, Utilities. Others can be included but these are your main points that should always be included.