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So landlords aren't asking for your salary to be 40x the rent? From the listings I've seen, landlords want 40x the rent and credit in the 600s or more in some cases.
These are the rents for new leases only. I'm guessing that most people living in NYC are not paying current market rates for their rentals. So the numbers only get you so far in figuring out what is really going on.
I have never seen figures that show what people are actually currently paying monthly for their for housing in the 5 boroughs (whether that's mortgage+maintenance, just maintenance only if mortgage is paid off, old-time rent stabilized rent, below market non-stabilized due to renting from a relative, NYCHA rent, etc.). Maybe those numbers are out there, but I haven't come across them.
Part of the answer is that a lot of people in NYC are rent-burdened, which is defined as paying more than 30% of gross income on rent.
From an article in ShelterForce:
In New York City, according to recent census data, more than 1 million households are paying more than 30 percent of their income in rent, and more than 600,000 are paying more than 50 percent. Reducing their burden to only 30 percent is noble, necessary, and difficult work. In our drive to succeed in the face of this challenge, we become so wrapped up in getting our projects financed and built that we simply do have not time to contest a federal affordability standard that we have little hope of changing.
So landlords aren't asking for your salary to be 40x the rent? From the listings I've seen, landlords want 40x the rent and credit in the 600s or more in some cases.
They don't ask that each individual earn 40x. If two or more people apply to rent an apartment jointly, whether they are married not, the general requirement is that the combined total household income for all lease signers be 40x. So an apartment with a 2,000 rent could be rented to a single person making 80,000 or to two people making 40,000 each or to two people where 1 makes 50 and the other makes 30.
Yes,for a single person or a household of 2 or more with only 1 income they generally do require the single earner to to earn at least 40x . Some landlords actually require more .. like 50x and credit scores over 700. which I think is actually much healthier. I was told as a kid by my mother to never spend more than 20% of income on rent which would convert to 50x. 40x is too lenient not too stringent !
They don't ask that each individual earn 40x. If two or more people apply to rent an apartment jointly, whether they are married not, the general requirement is that the combined total household income for all lease signers be 40x. So an apartment with a 2,000 rent could be rented to a single person making 80,000 or to two people making 40,000 each or to two people where 1 makes 50 and the other makes 30.
That I've always known... So you think couples are just getting together? In my building there are no couples. Most apartments are studios or studio lofts and they go for $1600-1800. One bedrooms go for 2100-2300.
That I've always known... So you think couples are just getting together? In my building there are no couples. Most apartments are studios or studio lofts and they go for $1600-1800. One bedrooms go for 2100-2300.
I think it's safe to assume that in apartments with a sole occupant the income of that occupant is either 40x or that the rent has been guaranteed by a non occupant(parent). Requirements for guarantors in those situations by the way is generally 80x.
There are also insurance companies that guarantee rents for people below the 40x . Landlords don't mind this because rents are guaranteed. Some landlords even encourage it/recommend/ work with guarantee companies. How much this costs I don't have a clue.
I am sure there are also landlords that lower the 40x requirement depending on their gut feeling about a prospective tenant. I know if I was a landlord I'd be more inclined to rent to a person with an 800 credit score but less than 40x income than to someone with 50x and a 600 credit score.
I think it's safe to assume that in apartments with a sole occupant the income of that occupant is either 40x or that the rent has been guaranteed by a non occupant(parent). Requirements for guarantors in those situations by the way is generally 80x.
There are also insurance companies that guarantee rents for people below the 40x . Landlords don't mind this because rents are guaranteed. Some landlords even encourage it/recommend/ work with guarantee companies. How much this costs I don't have a clue.
Very interesting. My building hasn't had an issue filling the apartments so far. There is one going for a little more than $1700 (I think it was round $1750). Recently gutted with brand new flooring, appliances and so on. Seeing that the everyone is single in my building so far, I assumed that people are making in 80s or above like myself.
I am sure there are also landlords that lower the 40x requirement depending on their gut feeling about a prospective tenant. I know if I was a landlord I'd be more inclined to rent to a person with an 800 credit score but less than 40x income than to someone with 50x and a 600 credit score.
This has always been true in my case. I never make the 40x requirement but my credit score is 825. I know thats what gets me the apts.
I think it's safe to assume that in apartments with a sole occupant the income of that occupant is either 40x or that the rent has been guaranteed by a non occupant(parent). Requirements for guarantors in those situations by the way is generally 80x.
There are also insurance companies that guarantee rents for people below the 40x . Landlords don't mind this because rents are guaranteed. Some landlords even encourage it/recommend/ work with guarantee companies. How much this costs I don't have a clue.
I am sure there are also landlords that lower the 40x requirement depending on their gut feeling about a prospective tenant. I know if I was a landlord I'd be more inclined to rent to a person with an 800 credit score but less than 40x income than to someone with 50x and a 600 credit score.
The last paragraph (and Bluedog's posts in general) is exactly true, at least for small-scale landlords, who don't run a real estate investment business, but just have an extra unit or two (which they often either have used for themselves in the past or plan to use in the future). There are many such landlords, and what they offer resembles more a very extended AirBnB (under a lease) than serious real estate investing. Small-scale landlords like that tend to be very flexible, as long as the tenant is fair to them as well, and does not try to abuse the situation. Decent people still tend to do business based mainly on a handshake.
This has always been true in my case. I never make the 40x requirement but my credit score is 825. I know thats what gets me the apts.
Wow! I never met anyone (other than my dad) with a score like that. Mine is 790 and it keeps going up. Maybe if I leased a car it would go up faster, but I don't think it going up will change my ability to borrow or the interest rate I receive.
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