April 4 2010

Renting Out Your NYC Apartment

by racheal

If you are a New York City apartment owner, you should take some precautions before renting out your property. After all, New York City is one of the costliest cities to own in the world. Year after year newly graduated students flock to this amazing city, which can employ anybody and everybody. Many students come to this city with a lot of positive attitude and zeal to achieve. Only when they start their search for a new apartment do they realize the coast it takes to live in this vibrant city.

Manhattan, of course, is the favorite destination to find an apartment. The average rent within Manhattan for a single bedroom apartment is somewhere around $2000. If you wish to have extra facilities and amenities, then it comes to around $3000. Here the rent is very high and people need to prepare themselves for a rent shock. By offering even $100 or $200 less than your neighbors, you will gain a leg up on your competitors, without losing out on an investment.

As an owner you should always ask the renter for a guarantee, or “key money”. Now that you have lowered your renter’s coast, you will need to make sure your prospective renter is serious about renting your apartment. Most owners want their tenants to earn a minimum of $40k-$50k per year to make sure the tenant can sustain a rent of $2500 per month as well as the “key money”. Normally a recently graduate cannot pay this amount due to his or her salary may be ranging from only $30k-$40k per year.

Some of the questions you may want to ask a potential renter before renting out your NYC apartment are:

• Place where they had rented from before, with a phone number so that you may inquire if they are a trust worthy renter that pays rent on time and can maintain the apartment
• Their tax returns from the last two years, to make sure they can hold a steady job
• Their current bank statements. Take note of other incomes, like stocks and shares
• Personal reference letters and business reference letters

 

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