Tag: rentinganapartmentinnyc

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Should I rent or buy an apartment in New York City?

So it’s been a most unusual spring in New York City. The timeline for renters has been turned on its ear. In the past starting a search for a “straight rental” 7 weeks early would have ended in frustration. I used to beg people to search 3.5 weeks before their move date, when they would have the most options and leverage.

Now any good apartment has applications within 48 hours of being listed. Even less sometimes. And on May 6 we are already seeing listings on StreetEasy for JULY!

As a listing agent I don’t think that is the most effective time, you want something to hit the market at at the time the most and best qualified renters are looking, but perhaps I will be singing a different tune soon. I just took an application for an off market listing for July 16.

Buying in Manhattan and inner Brooklyn and Queens is different in so many ways from the rest of the US. But with the rental market almost absurd, more relocation clients are starting to wonder, ‘Should I buy?”

While the rental market is out of control, the sales market still offers some deals. The rest of the US is in a sales frenzy, but a number of factors make Manhattan different.

The market was soft before the pandemic, the pandemic hit harder and longer here, and finally– the investment market here is different than the rest of the country, where investors will offer competitive cash for almost anything and do the deal in warp speed.

A few things to know.

If you are browsing I suggest using a NYC-centric search tool. Line City is good, StreetEasy is popular, you can also use almost any REBNY agency site. Try to avoid Zillow, which is the same data as StreetEasy but can be confusing.

The cheapest deals you see probably have a big asterisk. They are income-restricted, or occupied units with a tenant that is rent regulated, or cash-only.

Then you need to think about co-op versus condos.

If you are looking in the lowest price ranges most apartments will be co-ops not condos. To make this post efficient I linked an article that explains that. Many of the least expensive co-ops may have policies that make them less flexible as an investment property, which is another major difference with NYC. Condos are simpler to qualify for and to rent out, but they tend to be more expensive. Another key factor is the monthly building charges. Those have more to do with the co-ops finances than the size of the apartment or the amenities.

Even with all of that– there are appealing studios in the 300K range…check out this sweet sunny studio. Parents who are buying for an adult child or people wanting a second home in the city should discuss those plans with an agent.

So while buying still requires a down payment and a vision of your future, if you are moving to NYC it may actually be the more sensible and rewarding option.

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Will those bargain NYC rents go up next year?

I said I didn’t have a crystal ball!

So clearly a lot has happened since we last spoke.

Currently it is a renter’s market the likes of which has not been seen in years.

So why is getting the perfect place a challenge?

The prices may be lower but the system is the same. Landlords have gotten choosier. While the rents may be lower they are still looking for well qualified tenants with good credit and qualifying income.

Then there are the CRAZY pricing schemes. I actually saw a place that has a two year lease, with a 500 dollar jump. Where do you go when you are at the bottom of pricing? One of the thing that makes clients crazy is a lot of net effective pricing. That means the landlord is discounting the rent by averaging in free months, and the regular rent. Some landlords are beginning to average this over a 12 month basis which has historically been rare.

Tenants looking for long term stability wonder what the catch is. The truth is nobody knows what will happen in a year. People are coming back to the city for sure, but are they outpacing the inventory coming on the market?

The one little nugget is that we are going in to a time of year that less inventory came on the market, for the next few months fewer leases expire. That should slow the rush of apartments on to the market. For now if you are looking to rent, realize those free months are a chance to save, invest, even vacation. Try to budget to the gross rent and you will be sitting pretty no matter what.

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How will the Coronavirus crisis impact renting an apartment in NYC?

So this is a question I get a lot and of course I have no crystal ball.

Renting an apartment in Manhattan is VERY seasonal.

Busy season typically starts around Easter as students move out of dorms due to graduation or a desire to live off campus. The prices increase, concessions increase as we move through the summer. In August all hell breaks loose, as people start looking for places for September 1, the start of school and new jobs. The first few weeks of September are busy too. Then in October prices drop, concessions are added, by November we start to see deals. December is a mixed bag, low inventory, good discounts, January is similar.

So already we have missed that first wave of students leaving dorms. The short term market is on fire with thousands of health care people looking for temporary housing which is always tricky. There are good deals out there if you are comfortable renting remotely.

I think if NYU and Columbia and the New School start classes on time, we will see the market return to normal in August. I am guessing we will actually see a bump in professionals looking for places when work restrictions end.

There is one thing you can do it is start getting smart about finding and apartment in NYC. Go ahead and start learning about qualifying for an apartment, what documents you will need, what the costs are, whether you will need a guarantor, what fees you are comfortable with, and so forth. Adrianna Darling and I are always happy to help you start planning.

Stay safe and good luck! We are here to serve.

To work with NYC real estate agent Suzanne Goldklang email sgoldklang@corcoran.com.