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It's a big city and anything is possible, but why would someone who doesn't come close to 40x want to live here? The cost of living is high and either they wouldn't have a very enjoyable life or they would squander that savings in short order.
Unless the landlord has a very strict income policy, then sure, being able to show assets--such as savings, retirement accounts, stock portfolio--will ease the 40x requirement. Having an excellent credit rating will help, too. In some instances the landlord may ask for a higher security deposit in lieu of meeting the 40x requirement.
Unless the landlord has a very strict income policy, then sure, being able to show assets--such as savings, retirement accounts, stock portfolio--will ease the 40x requirement. Having an excellent credit rating will help, too. In some instances the landlord may ask for a higher security deposit in lieu of meeting the 40x requirement.
He didn't offer you an apartment. Just a lot of supposition which is not average nor normal. The fact is if you don't have the income to afford the apartment, you won't get it!!
For example, if you earn 20k, have 100K in the bank and great credit, only an idiot would rent to you. If you are making 'plans' do not plan on finding an idiot for a LL.
The fact is if you don't have the income to afford the apartment, you won't get it!
That's so basic, it's kind of frightening that it even has to be brought up. But it's strange the way people who can't actually afford a particular apartment can come up with any number of 'plans' to put themselves in debt up to their eyelids.
I think you guys are being a little overly harsh. There are ways around the 40x "requirement", I have done it myself, with no co-signer, via excellent credit and the assets I mention above. This may or may not apply to the OP, who knows what "3 years of savings" means, or just how expensive or modest an apartment the OP is seeking. I would modify my response to say that it CAN be done, but agree that one shouldn't try for an apartment that is beyond one's means. That's just common sense.
Honestly? I don't think I'd want to rent an apartment in Manhattan unless I could truly afford the rent (meaning that not 75% of my income is going to the rent each month!)
I wish the OP would elaborate more: how much is the apt? what kind of salary does he have? how much is 3 years' savings? is he prepared to give 3 months security if he doesn't make 40x? Where in Manhattan is he looking to live?
If it is a management company, there are strict policies if you do not make their specified income. One I know where a friend was living after relocating, required bank statements with proof of liquid funds (not 401k or other retirement assets/interests in property/etc.) to cover five years of rent at the current rate. From what I recall from his situation, as he moved without a job, but with some income from a part-time side business, it didn't matter if he made 30x rent from that business and had savings to cover the extra portion. If the 40x was not met, they required liquid assets for the specified period, with no exceptions.
One thing to remember is that larger management companies have fiduciary responsibilities to the owners of the building, which may be a family, REIT, corporation, etc. As such, the rules are not as flexible as can be found with a smaller landlord who may waive the requirement if they feel that you are a good risk. I would look to a smaller landlord, which is not going to be easy if you're looking for a large building in Manhattan. Part of the reason for the strict financial vetting process is that NYC is very pro-tenant, and it can be difficult, not to mention costly, to remove a non-paying tenant.
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All the world's a stage, and all the men and women merely players: they have their exits and their entrances; and one man in his time plays many parts, his acts being seven ages.
~William Shakespeare (As You Like It Act II, Scene VII)
I think a number of posters give the impression that the *only* way to get housing in the city is to go through a broker, be required to make 40x rent, and pay market rate for a downtown apt -- and that if you can't do that don't bother moving here. That is simply not true.
If you are willing to move into an established apartment and have roommates -- then that is the way to go without breaking the bank--at least until you get yourself established and figure out if the city is for you. There are also buildings owned by families in the city who are not as strict and often have cheaper apartments. If one is willing to move to a more distant stop on the subway that also helps with affordability.
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