Guide | Rental Fees & Paperwork

What are the fees? There will always be fees associated with securing an apartment. Most of the time the fees are legal (as they should be all the time – but be wary). Sometimes, though, even legal fees can be unnecessary or excessive.

Broker’s fee. This amount is not set by law but is typically 10-15% of the annual rent, or roughly the cost of one month’s rent that you just hand to the broker upon securing the apartment. You can negotiate this amount, but you should do this after securing the apartment or you will often get worse service. In order to charge the fee, the broker must actually find you an apartment. More and more brokers are taking their large fees simply for listing a unit on craigslist and opening the door for you. This is wrong but there is not much you can do about it.

Application fee. This can vary but is almost always charged. Usually it includes the cost of running a credit report, although some landlords will give you the option of including a copy of your credit report in the application packet and saving a portion of the fee. If you are using a broker, this is always in addition to the broker’s fee and unlike the broker’s fee this is paid upfront. Legally, the fee must be reasonable in relationship to the cost of doing things, so realistically it may vary from $50 to $150. Much more than that may be a cause for concern.

Apartment referral services can charge a fee for referring apartments to you. They must refund the fee, minus $15, if you don’t find an apartment through them.

Neither a building owner or manager may charge you a fee in order to rent an apartment. This could be considered “key money” and is illegal if you can prove it–although a verbal demand may be hard to prove in court.

Security deposit. This is not really a fee as you will (in theory) get the money back when you are done with the lease but it is important to know that you will need to pay the first month’s rent and the security deposit upfront as well as the broker’s fee if you are using a broker. The security deposit is not your last months rent. If you are trying to get into an apartment you do not really qualify for, the landlord may ask you to pay additional months upfront.

What do I need to bring? Have all of your paper work ready, including money for fees if possible, when you go and see an apartment. It is not uncommon for a deal to be signed right at a viewing. Remember you need all of your paperwork for you, roommates, and any guarantors that may be needed.

• Verification of employment
• Acceptance letter or last 3 pay stubs
• Verification of duration of employment
• Employer’s name, address, and phone number
• Copy of Bank Statement
• Bank name, address, and account number
• Copy of Tax Returns for last 2 years
• Previous Landlord’s Name
• Previous Landlord’s Phone Number
• Recommendation letter from landlord.
• Government issued photo ID
• Social Security Number (If you don’t have one you may need a guarantor from New York, New Jersey, or Connecticut and/or pay an additional security deposit of up to 6-12 months up front)
• Credit check and application fees
• First month’s rent and one month security deposit (if you do not meet all the qualifications, you may be able to negotiate by offering to pay a certain number of months up front)

Use a broker? If you’ve got your heart set on a particular apartment and a broker has wedged himself in between you and the landlord you may not have a choice. Otherwise, if you are looking to find an apartment, a broker will cost you, but you could make up the cost in saved time, frustration, and possibly a sweet deal. There is some room for negotiation with a broker but as a rule expect to pay the equivalent of at least one month’s rent to them. Some people swear by the amount of rent their broker saved them and it is true that if your broker gets you into an apartment that’s 20% less than the current market value of apartments in your area, you can make up the brokers fee in the first year. If you sign a two year lease, you will recoup your losses and come out ahead. That being said, with enough time and tenacity you can find great deals on your own. Only you know what your time (and sanity) is worth.

Going solo? If you decide not to use a broker there are many way to find an apartment. Craigslist is the most common one with scores of new listings each day. Many brokers also use Craigslist to advertise units so be sure to limit your search to no-fee apartments or double check the listing to make sure there are no hidden charges. Additionally, there are Villiage Voice, NYT online, and Oodle for online real estate listings. If you know what neighborhood you want to live in you can also spend some time walking around and talking to people. Many times buildings that do not use brokers will post a sign and residents may know of a vacancy before it hits the market. You may also try contacting management companies directly or searching for their websites to find a vacancies that may be listed.