Shopping for an apartment in Manhattan was Hell On Earth™.
Everyone knows this. In fact, all anyone had to say to me before I went to look for an apartment is “wow, good luck, it’s hell.” And it was. But not for the reasons you think.
Most people think the trouble with finding an apartment in Manhattan is a) price and b) availability. These are serious concerns—a studio anywhere other than Harlem is typically between $1550-$1200 a month. And once on the market, real estate disappears within weeks, so you have to move quickly. These, however, are not what make NYC real estate Hell On Earth ™.
You see, Manhattan real estate is a lot like federal taxes in the sense that regulations are legislated with the best of intentions to help the have-nots by punishing the haves, and in the end the only people who feel the pinch are the have-nots. Originally, it was very easy for landlords to get by building slums, charging exorbitant rent, and evicting people at the drop of the hat. So, to protect tenants, regulations were enforced to make eviction difficult, to control how much could be exhorted, to force the landlords to spray for roaches and give free hot water and put in a g-d window. “Oh my gosh” the little liberal hearts fluttered, “look at how noble we are! We are protecting the little man from the evil, capitalistic slum lords! We deserve pats in the back for our sensitive attention to the plight of the working man!” But of course, landlords are smart, and they realized that if they had to provide mothereffing windows, and if they couldn’t evict without a court order and 6 weeks notice, and if they had to set rat traps and only raise rents a certain percentage every year, then dangit, they were going to make sure that they had tenants who PAY. This is where the system becomes Hell On Earth ™.
I saw, after a few days of looking around, a spectacular apartment in 55th and 9th. It was brand new and the food floors were freshly varnished. Brand new bathroom with huge tub, clean kitchen, huge closet. The building had a Laundromat in the basement, an elevator, a live-in super, and a night guard. The rent was a bit high ($1600 for a studio), but it was really lovely, so I put in a bid. I had a broker, and I had to give him $150 so he could run my credit and my parents credit, to see if a) my parents earned more than 80X the monthly rent (as they were the guarantors), or b) if I earned more than 40X the rent and/or had good enough credit to qualify. As it was, we were turned down because my parents and I didn’t have a tri-state area credit history. When we offered to leave a larger deposit to serve as an act of good faith, we were told that we couldn’t, because by law, rent-controlled apartments couldn’t accept anymore than the state-agreed security deposit. None of this red tape, though, is ever mentioned when you are looking at an apartment, so you don’t know if you even have a chance of getting the place until you have a broker run your credit history by the landlord, as 9 times out of 10 the landlord refuses to talk to you directly, since you are a hassle, and the broker knows the system. And a broker is just a fancy name for real estate agent, and you have to pay said agent 15% of your years rent, which is typically $2200-$2500 dollars.
The Hell On Earth ™ system breaks down like this:
1)Find an apartment in your price range by looking online or in a newspaper
2)Call said place immediately to make sure your apartment is still available
3) See whether or not you need a broker to talk to the landlord; arrange a viewing with landlord or broker, hopefully the day you have seen said advertisement
If you need a broker+:
3a) See the apartment and decide then and there whether or not you want to it
3b) Give over $75 to have your credit history checked
3c) The broker sends your credit history, tax forms, and references to the landlord. The landlord can either:
3ci) view all the bids and take the one that’s the most appealing
3cii) Take the bids on a first-come-first-serve basis.
3d) If your apartment is in a co-op, the co-op has to vote to decide whether or not you are “their kind of person”, though luckily co-ops are usually run by the same person, so there is no disagreement
3e) If your credit is good enough, CONGRATULATIONS! The apartment is yours. SIGN YOUR LEASE! If it isn’t:
3ei) The landlord asks the broker if you have a guarantor
3eii) The broker then asks for another $75 to run the credit of your guarantor
3eiii) The broker gives this information to that landlord, and if it’s accepted, CONGRATULATIONS! SIGN YOUR LEASE! If it isn’t:
3eiii.1) It is because the credit of the guarantor isn’t good enough. Your broker can try and negotiate a heftier security deposit, the outcome of which is either:
3eiii.1a) If the apartment isn’t rent controlled, and if your landlord decides he likes you, then CONGRATULATIONS! YOU CAN SIGN YOUR LEASE
3eiii.1b) If the apartment is rent controlled, then you can’t put down additional money, and must therefore move to option 3eiii.2, which is:
3eiii.2) The credit of your guarantor is denied because credit is too bad. You can find a new guarantor with better credit.
3eiii.3) It is because there is no credit history in the area. You need to find a local guarantor. You may then spend $75 checking the credit and financial history of your local guarantor, and if it’s up to the landlords standards, then CONGRATULATIONS! YOU CAN SIGN YOUR LEASE!
3eiii.4) It is because there is no credit history in the area. You need to rent an apartment in the city for a year to build local credit.
(+If you don’t need a broker, you will have to go back and forth with the landlord directly, and he can at any time ignore your bid by taking a bribe or a bid from a stronger, richer prospective tenant.)
3f) If any of these subpoints result in having your bid become accepted, you must then pay the first months rent, a security deposit worth anywhere from 2-4 months rent, and the broker’s fee—this adds up to roughly $8,000-$10,000 dollars. This can only be paid in the following forms
4) CONGRATULATIONS! YOU NOW HAVE A WEEK TO MOVE INTO YOUR NEW APARTMENT.
So, suffice to say, it is the red tape that drove me to the brink of despair. I only had 5 days, and 5 days is simply not enough time to deal with that level of bureaucracy. I eventually settled on my cousin’s apartment in 54th and 9th (appropriately, Hell’s Kitchen) which she was nice enough to let me have. And even then, I had to go through a broker to secure it—how effed up is that? I’m paying $1350 for a 5th floor walk up, it’s about the size of my junior year dorm room, and it’s a fantastic deal. So yes, Hell On Earth ™. Never again—I’m moving to Brooklyn when school is out. And thanks to Mark and Mary S for the sweet text messages. I read them crying in the bathroom, and they did a lot to calm me down.
So yes, you smug people, you were right about the impossible Manhattan apartment search. But I want you to know you were wrong about FINDING a place. I found places. It’s SECURING a place that will kill you. And right now, I’m feeling completely torn up. I’ll gush about NYC later, upon recovery.