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First-Time Home Buyer’s Guide: Everything You Need To Know

First-Time Home Buying Guide

Buying a home is one of the most significant purchases you’ll ever make, so it’s important to know the ins and outs of becoming a first-time homebuyer in New York.

From the best boroughs to ideal properties and the prices involved, New York City offers many options for first timers in the market for a new home.

Venturing into The Big Apple to buy your first city apartment can be a daunting idea. However, the advantages of owning a piece of New York far outweigh the challenges of coming to grips with the city’s real estate quirks and idiosyncrasies. To take the confusion out of the home buying equation, here is a comprehensive guide to buying real estate in New York.

What does that mean for the first-time homebuyer?

It means trying to predict the future. In the next seven years or longer, do you plan to start or grow your family?
Is there a possibility your employer will transfer you to a location in another part of the country?
Do you have an ailing or aging parent who may need to move in with you?

Predicting the future also means buying only as much apartment or house as you think you’ll need, but not much more. In the past, the trend in a first-time apartment or home buying was to purchase a smaller, more affordable “starter apartment or home,” and then sell it in a couple of years when the family (and the household income) grew. Given the variables in the real estate market, that no longer seems like the best strategy. Today, you’re better off buying the apartment or home you think you’ll need for your family for the next ten years.

Apartments and homes with multipurpose rooms, like a dining room that can be converted to an office, or an attic that can become a bedroom, make sense as you try to arrange your home to meet your family’s changing needs. Resist the temptation to buy too much house.

The additional real estate taxes, utility payments, and maintenance and repair costs restrict your ability to save for other family necessities. As the saying goes, no matter how big your apartment or house is, you can only sit in one chair at a time.

Planning for the future

Buying a home makes sense if you plan to live in it at least five to ten years; any less, and you may wind up losing money in the transaction. The seller in a real estate transaction can easily expect to pay up to 10 percent of the sales price of the home in closing costs, allowances, commissions, necessary repairs, and other negotiated expenses. Also, sellers rarely get the full asking price for their apartment or home, unless there is a shortage housing inventory. It is also possible to get a full asking price if a home has been well-renovated, is in a great location, or if it features distinctive and appealing architectural detail.

Taking Care of the Preliminaries

Before you go searching for your first dream home, you have to figure out exactly how much you can afford. If you are taking the home loan approach, then you’ll need to check your credit score. Your credit score has everything to do with the type of loan you’ll qualify for.

Once you know your score, it’s time to calculate how much you can afford. This is where being honest with yourself counts. In other words, be as realistic as possible with your finances, and don’t forget to include the down payment, closing costs, and additional fees associated with the purchase.

Be Realistic

Whether you’re looking for a fixer-upper townhouse or brownstone Brooklyn, or a studio apartment in a walk-up building in West Harlem, focus your search as narrowly as possible and do it with a wish list in hand. Shopping aimlessly in a city of endless choices doesn’t work with designer clothing, let alone real estate –– an H&M budget won’t get you a suit from Prada, much in the same way a one-bedroom budget in Washington Heights won’t get you a sprawling two-bedroom in the West Village.

Have flexibility

Based on the initial wish list you had made before you began shopping, you might not be able to afford Park Slope, even though you have your heart set on that neighborhood. Adjacent areas of Brooklyn, however, could offer more space and additional amenities and still be within your budget, so stay open-minded.

If you aren’t prepared to stray from your dream neighborhood, adjust your list and scratch off that extra bath, or the outdoor space, both of which add thousands of dollars to an asking price.

Planning & Saving

Don’t start thinking about who you are going to get a loan from 1 month before you think about starting the hunt. Start planning for your new home well before you even think about contacting a real estate agent. A few things to consider are what you can realistically afford, where you want to live, and what other costs will be associated, such as HOAs and real estate taxes.

A down payment for a home is commonly set to 20%, but you can now get a loan with much less. However, you should consider if a lower down payment is worth the additional costs you may have to pay such as for mortgage insurance. Many people don’t think the fact that a 10% down payment on a 200,000-dollar home is 20,000 dollars. For many first-time home buyers, this is not a small amount, so start saving now!

Credit Activity

You can get one free credit report every year from each of the three big credit reporting companies. This means that you can get three a year if you use one from each. Go to annualcreditreport.com for more information on this.

Remember, they are the only site that is authorized to do this. Your credit score will impact your ability to get a loan. Plan, and you won’t find yourself being denied every loan you apply for.

In addition to making sure your credit score is healthy, you should avoid making any big purchases during the time you are hunting for your first home. Any activity that involves an inquiry into your credit, such as buying a car or signing up for a credit card, can lead to a drop in your credit score.

Hidden Costs

Getting a loan isn’t the only time you will have to talk money during the process of buying a new home. There are plenty of additional costs that can sneak up on you if you are not careful. One such cost is paying a home inspector. If you are buying a home, you need to have an inspector’s assessment, especially if you are not buying new.

Realistically, don’t expect a used home to be without damage. Depending on how lucky you are, expect to spend at least a few hundred dollars in repairs on your new home.

Appliances are another cost many first-time buyers don’t consider. Will the home you are buying come with a refrigerator? How about a washer and dryer? If no, then it’s best to have a budget planned for such costs.

Future Plans

How long will you be living in your first home? Are you going to start a family and need more space? Is your employment situation secure? Has there been a yearly increase in crime or a decrease in property values? These are only some of the questions you should ask yourself before buying that perfect dream home. Carefully consider your plans and resale value of your home. Remember, a home is more than just a place to live, it is an investment.

An issue commonly faced in bigger cities is urban sprawl. If you are in a developing area, then that can be great for your home’s value, but you should consider how your daily commute and noise levels will be affected.

Finding a Buyer’s Agent

Buying a home without representation and the help of a real estate buyers agent is doing yourself an injustice, so it’s important to find a broker that specializes in buyers. Buyers agents can help with everything, from finding your dream home and facilitating the sale to mortgage pre-approval, negotiations and contract finalization, and every home buying need in between.

You should do a lot of research into your buyer’s agent. A good agent will have your back and doesn’t just see you as dollar signs. Remember, an agent is there to make the whole buying process more comfortable. If you find that this isn’t the case, then get a new one, fast!. A good agent will not only be extremely knowledgeable about their subject matter but will also have plenty of experience buying homes in the area you are interested in. They will many times have insights into things that you may not have thought of.

Documents

There is a lot of paper shuffling that goes on during the home buying process. If you are unsure of what documents will be needed, don’t be afraid to ask a buyer’s agent. This will save you a lot of headaches. The last thing you want is to be digging around your office in the middle of the night because you forgot to send some important document.

Also, read any documents that are sent your way. First-time buyers can get excited about their new home and potentially miss something important in a contract.

Get pre-approved for a mortgage

Don’t waste your time, a seller’s time, or the time of the brokers involved in the sale by not getting pre-approved. Obtain a pre-approval letter before you begin searching for your next residence, ensuring that you’ll have the ability to make an offer should you stumble upon “the one.” Without pre-approval, agents and buyers won’t take you seriously, and they’ll move on to a buyer who has the necessary paperwork. Plus, you’ll know how much cash you qualify to borrow ahead of your search.

Get to Know the City

Getting to know an area before you commit to buy an apartment is always a good idea, and this is especially important when moving to New York City for the first time. Each borough and neighborhood has a different mix of cultures, characteristics, and subtle nuances that make each of them unique.

If possible, spend some time in your desired area and speak to the residents. Find out the prices available apartments are going for, what the residents are like, and their feelings about the neighborhood.

Choosing the Right Borough

Manhattan, Queens, Brooklyn, the Bronx, or Staten Island? That’s right, choosing the right neighborhood for you is the first step in owning a home. Although it seems a bit daunting, making a list of the pros and cons of each area will help you narrow your search.

Break your list into columns that include everything from price and location to population and taxes. Think about what defines each borough as well. Manhattan is a metropolis, whereas Staten Island offers a suburban feel. Once you tally the pros and cons and narrow your search to one or two spots, it’s time to figure out your budget.

Condo or Co-op

Condos and co-ops are very different forms of housing ownership. Each offers its own set of benefits and drawbacks.  What may be a buyer’s perfect apartment in a building with a condominium ownership structure may not be worth purchasing if it were a co-op.  Likewise, a co-op offers owners levers of control over the future of the building that many buyers insist on.

The financial structure of the two types of buildings differs in substantial ways.  A co-op has an ownership structure closer to that of a public corporation than a typical apartment building.  Instead of owning a particular apartment, like in a condominium, those that live in a co-op hold a share of the company that owns the building.  The more valuable the apartment, the larger the percentage of the company the resident owns.

While most buildings being built in New York City today are condos, 85% of all the apartments available for purchase are still cooperatively owned.  While some analysts predicted years ago that co-ops would soon begin restructurings themselves as a condominium, the bylaws of most cooperatives require a supermajority, or 66%, vote of approval by the owners to allow this to happen.  Many even need a super-super majority, or 80% vote.  This explains why recent history has made it clear: Co-ops are here to stay for the foreseeable future.

Your home as an investment

In the literal sense of the word, the house you live in isn’t a true “investment.” That runs contrary to conventional wisdom, but here’s why it’s true:

Apartment and home prices have grown only slightly more than inflation for more than a century. What this means is that if you bought an apartment or house in 1980, paid off the mortgage, and sold it in 2010, you’d have the same buying power as you did at the start.
The real estate market is a lot like the stock exchange. As a general rule, it tends to increase over time, but trying to gauge the perfect time to buy and sell is an imprecise science. When you want to sell your home sometime in the future, if you’re lucky, it won’t stay on the market longer than a year. No one can guarantee that’ll happen, though, leaving you unable to access your capital. It ‘s hard to predict what will happen to your neighborhood, development, or market in five or ten years down the road.
Just like stocks, you have to sell your apartment or house when you want to use the profit your investment generated. However, unlike stocks, when you sell your apartment or house, you’re selling the roof over your head.

Some of the wealthiest people in the USA build their wealth by owning homes and real estate. Even if you aren’t generating a high rental yield, buying the right property nonetheless can be an excellent investment. Owning a home is building wealth; it gives savvy buyers years to compound that wealth and accumulate more property.

For example, if someone had bought a home in NYC 30 years ago, that person’s net worth would have inflated by approximately 1000%. More than three-quarters of investors worth $1 million+ own real estate, according to a study conducted by Morgan Stanley. Directly owning private and commercial property was cited as being the number 1 alternative investment choice, with 33% of the surveyed millionaires saying they planned to buy within the next 12 months.

Owning your apartment or home can be a beautiful thing. It’s a shelter and a source of pride for you and your family. It often provides a cheaper overall housing alternative to renting. But it is not a guaranteed investment. Don’t think of the apartment or home you and your family live in as an investment; it could cloud your thinking and lead you to make buying decisions that aren’t optimal for you. Buy an apartment or house because you and your family love living in it, it meets the needs of your family, the schools are great, and you enjoy being part of the community—not because you think it’ll be a significant investment.

Considering opportunity costs

Opportunity costs can are defined as the loss of profit or value from something that is given up to acquire or achieve something else. For example, if you’re cashing in an investment like a stock that has consistently returned ten percent a year to cover the down payment on your apartment or home, you’re potentially missing out on all the earnings of those stocks. For younger investors who have 20, 30, or more years for investment growth, the lost profits could add up to a sizeable amount. This is why some financial advisers recommend that genuinely disciplined savers who invest wisely are better off renting than buying. What does this mean for the first-time homebuyer?

If you’re financing your down payment with a second mortgage, or part of it is a gift from family, your opportunity costs are meager. On the other hand, if you’re raiding your 401(k) or another brokerage account for a down payment, be conservative in deciding how many homes you can afford. A lower purchase price means a smaller down payment, which means more of your money can remain in long-term investment accounts. Another reason to buy only as much apartment or house as you think you’ll need in the next seven to ten years; you’ll lower your opportunity costs by maintaining a larger percentage of your other investment accounts.

New or resale, which is right for you?

In many instances, a resale is the only choice, especially if you have your heart set on a particular neighborhood or love the idea of restoring a beautiful space in a Pre-War building. However, for many first-time buyers, new construction is the better choice. For example:

Energy-efficient appliances and “green buildings” are becoming standard in today’s newly constructed apartments and homes. Efficiency standards have tightened considerably from 2010 to 2014, so energy costs are usually much lower in new construction. While it’s possible to retrofit older homes with more energy-efficient appliances, it’s expensive and rarely results in the savings available in new apartments and homes.
Most newly constructed apartments and homes come with fire-retardant floor covering and insulation, making them much safer in the event of a fire. Also, many builders hardwire carbon monoxide and smoke detectors in their buildings, which are more reliable and convenient than battery-operated models.
New buildings usually have sophisticated wiring capable of handling high-tech electronics, entertainment and security systems, and high-speed communications equipment. Customized wiring isn’t always possible in older apartments and homes.
You’ll save on replacement costs with a newly constructed apartment or home. Most major components have a lifespan of seven to ten years, and it’s possible for many to be covered warranties that can be extended beyond the first year. With older apartments and homes, it’s possible you’ll need to replace major appliances soon after you move in.
Many developers have mortgage banking affiliates that can customize financing, including down payments and interest rates, to meet your particular situation. They’re often able to defray some of the closing costs, too. However, the current market isn’t favorable for that unless the property is either in a bad location or grossly overpriced. While a seller of a resale home has some flexibility to contribute to settlement costs, they don’t have nearly the flexibility of a builder’s affiliated mortgage company.

So, which type of housing is right for which type of buyer?

Generally speaking, co-ops offer one significant advantage for some buyers: A more thorough screening process for potential buyers.  The screening process is an arduous task for potential buyers  Often just the interview with the board of directors will take up significant amounts of time, which is to say nothing of the various credit requirements to be met and paperwork to be completed.

However, once a buyer moves into the co-op, the social makeup of their neighbors tends to be much more stable and homogeneous. This can be either an advantage or a disadvantage, depending on what the buyer is looking for.  For those looking for a place to retire or to raise a family, the knowledge that the social and physical environment of your building will not change for a long time offers a great feeling of security.

These same tight screening processes and regulations that make most co-ops a reliable, unchanging environment, however, also make them more difficult to sell and often quite impossible to sublet.  This is particularly disadvantageous for buyers that do not plan on living in one place for an extended amount of time.

Indeed, the co-ops’ regulations give condos a relative value increase on the market:  Investors and more mobile homeowners prefer condos. This additional demand for a much smaller supply makes condos the logical choice for most buyers.  A recent study suggested that were the average co-op to convert to a condominium ownership structure, an average net gain in value of $15,500 would be added to each unit.

Get One Cheap

New York apartments are not typically considered as cheap. If you are willing to make certain sacrifices, however, you will be able to land yourself an excellent bargain.

Look at larger apartment buildings – Buildings with around 40 or more apartments are much more likely to have more appealing prices.
Search in the winter – There is less activity in the market during the winter months, and as a result, landlords are generally willing to deal with any vacant apartments they have.
Help out with the work – Some landlords have properties on their list that could use a little work. Offer to share the costs of repairs, and you can likely negotiate heavily on the price.
Check lesser talked about areas – Less publicized areas which are not as in demand can have nice cheap apartments which landlords are desperate to offload.

Save Some Room in Your Budget

There is no such thing as a perfect apartment. However, once you have secured the keys for one that closely matches your expectations you will have the freedom to perfect it. This is one reason it helps to have a budget that will allow you to make the purchase and have some funds left over for necessary renovations.

Even brand new homes can require some post-purchase spending. Factor in decorating or possible repair costs so as not to find yourself in a situation where you have to leave your new apartment to deteriorate.

Buying your first apartment in NYC might be one of the most challenging things you have to face thus far in life, but it can also be one of the most rewarding. In the end, it is not as daunting as you think.

Making an Offer

If you find a home that you love, make a reasonable offer. If the home is a good deal, then you can be sure you aren’t the only person who has come to this conclusion. Place a strategic offer that you are comfortable with. You can leverage your agent’s expertise for this part. If you are buying in a neighborhood where homes historically sell very fast, then you may not have time to negotiate on minor details, such as changing out light bulbs.

One of the most exciting and nerve-racking steps of buying your first home is making an offer. Counter offers aren’t uncommon in the home buying game, so it’s important to prepare for a second and sometimes third offer that’s within your budget.

Negotiations

If you choose to go with a real estate agent, they will handle all the negotiations and even make counteroffer suggestions. With a market as competitive as New York, multiple offers from different parties is a large possibility, so keep this in mind when it comes to your offer.

However, if you are in a buyer’s market situation where you have greater leverage, then don’t be afraid to take advantage of the opportunity. From real estate closing costs to repairs to even pest control subscriptions, you can find something that may help you sweeten the deal.

Getting the Right Mortgage

Congratulations! Once your offer is accepted, it’s time to find the right mortgage for your needs. Whether you choose an adjustable or fixed-rate mortgage, many tax advantages are specific to first time home buyers in New York, so it’s important to weigh all of your financial options before choosing a home loan.

When you’re ready to call yourself a homeowner, use the information above to help you along the way.

Are you ready to buy your first New York City home?

You may be wondering if you’re willing to purchase your first home. The answer depends on, in part, on your answer to the following questions:

Are you prepared to maintain and repair an apartment or home?
Are you willing to stay in the same apartment or home for at least five to ten years?
Do you have a realistic idea of the type of apartment or home and amount of space you’ll need for the next five to ten years?
Are you relatively sure your financial situation will remain stable or improve over the next several years?
Are you a disciplined saver who can build up an account for emergency repairs?

The financial and real estate markets are in harmony, making homeownership less risky and more affordable since 2008. Most economists predict that home prices will continue their steady rise.

For now, rates are low increasing buying power. However, interest rates have begun to climb and will continue to do so, lowering the amount of apartment or house you can afford later on. Buying an apartment or home is still cheaper than renting in New York, but as interest rates climb, this phenomenon is likely to change; waiting too long may push home ownership out of reach.

Buying an apartment or home is an exciting and often overwhelming experience; to help you understand the process and get the best possible outcome with your home purchase, we’ve prepared a Home buyer’s Handbook to help you get started. The information it contains, along with useful tips and recommendations, will give you a good understanding of the apartment or home buying process, and how to avoid costly mistakes.

Download free 127 page: First-Time Home Buyer’s Guide

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Too Customized to Sell??

Part of the joy in owning an apartment comes with the fact that it is 100% yours. Gone are the days when you have to deal with your landlord’s ugly countertop choice or your landlord’s definition of “modern appliances.” When you own a home, you can ensure that everything is up to standard – your standard.

For the most part in New York City, this means that appliances will stainless steel, walls will be neutral colors, and toilets won’t have that old metal handle.

But what happens when the owner’s taste isn’t in line with everyone else’s?

This is something that we are seeing more and more of, specifically in very expensive apartments. The more space an owner has, the more likely they are to customize it to their personality. Always wanted to bathe in a tub of gold? No problem. Want one bedroom in a fiery red? That’s fine, there are four others.

However, when these owners are ready to sell, their pool of prospective buyers often doesn’t agree with the aesthetic choices – or more importantly, the price tag behind the aesthetics.

A big misconception about property value is that any money a seller puts into a home will automatically translate into a higher sales price. But unless you find someone with the exact same style as you, you might have to factor in a cost for the new buyer to rip out your customized ideas.

Too rich for my taste

For example, a listing in Soho recently hit the market showcasing a $140,000 customized gold bathroom, with everything from a gold-plated tub to a gold money sign on the wall. In all likelihood, no matter how technically expensive or high-end this is, a buyer is going to want to rip it out – unless this buyer has always dreamed of having their bath mimic a music video.

In Greenwich Village, an owner recently installed a 30-foot saltwater pool on the bottom floor of his townhouse on Cornelia Street. Most people don’t feel the need to swim indoors, so the owner needs to acknowledge that his home will likely take much longer to sell. He’ll have to find a specific buyer – one who wants to throw indoor pool parties.

Not just a problem in big homes…

This fact holds true even in a small apartment. Owners who buy an $800,000 one bedroom and love to cook may go all out on their kitchen – Viking stoves with six burners, top of the line appliances, etc. While this is great, when the apartment hits the market, it’s likely that the pool of buyers coming to look at a one bedroom with a small kitchen is going to say “Well it’s pretty – but I’m not a chef, so I’m not willing to chip in extra thousands just for this appliance.”

Is this only true in New York City?

Once you leave the apartment world and head to the houses, the amenities only get crazier and crazier.

50 Cent’s home was recently showcased on Million Dollar Listing New York. In addition to being one of the largest houses based on square footage in the area, it also had a nightclub in the basement, complete with a stripper pole.

Slash’s home in Los Angeles was remodeled with a DJ booth, skate ramp, and a nightclub. Along with these amenities come wild stylistic choices like leopard carpets and light show effects – but the people who can afford to take over these homes often have more conservative tastes.

If you go to sell and don’t have the time to wait for the “right” buyer who will appreciate all the house’s nuances, then you’ll likely be forced into a price reduction. So if you’re planning to purchase a home and make custom choices, just make sure you have a reality check with yourself. Are you going to hold your home long enough that customization is worth it? Or might you be looking to flip your home in a couple of years and regret pouring money into a retractable roof over your master bedroom?

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Central Park Condos and Co-ops Cost More

New York City is a pricey market, with a median condo sales price of $916,000, but $1.6 million in Manhattan. The borough’s median co-op price was $800,000. So, Manhattan buyers should not have sticker shock when they go house hunting. However, if a co-op or condo next to Central Park entices you, we must warn you that you are going to have to pay more for the pleasure.

Why the higher prices?

Central Park is a green oasis in the midst of an urban environment spanning two and a half miles from 59th Street to 110th Street and half a mile from Fifth Avenue to Eighth Avenue. It has transformed over the last couple of decades, and there is quite a bit to do. There are concerts, Shakespeare in the Park, a zoo, and so much more. You can lounge in the grass, or go for a walk by yourself or with a companion, and even you can bring your dog along. There are a lot of sites to see on your stroll, too.

Breakdown by neighborhood

Those properties that border on the park fetched 25% more than the median price of other units in the neighborhood through the first eight months of this year, according to a PropertyShark survey. In some areas, the properties located on the first block bordering the park received a much higher sales price, however. This holds up historically, with a higher price difference found from 2013 to 2017 when broken out annually.

There are nine neighborhoods surrounding Central Park. This year, Central Midtown, the most expensive one, saw a $4.7 million median price for apartments in buildings fronting the famed park compared to $1 million for other apartments. Apartments bordering the park in the Lenox Hill and Carnegie Hill neighborhoods on the Upper East Side received similar $2.3 million and $2.2 million median prices, $1.1 million and $400,000 more than the rest of the area, respectively.

Buyers in the Lincoln Square and the Upper West Side neighborhoods paid $200,000 more to live close to the park. Lincoln Square condo and co-op buyers expended $1.7 million for the privilege, while Upper West Side purchases saw a $1.4 million price tag.

East Harlem, Harlem, and Manhattan Valley paid $998,000, $705,000, and $915,000 for apartments adjacent to Central Park. This was $293,000, $125,000, and 87,000 more than other residents had to pay.

The Central Park South area is the lone exception, with a median price that is about $500,000 lower than the $1.2 million sales price for those co-ops and condos that border the park. This was attributable to the luxury units on “billionaire’s row,” though.

Resale value

You may have decided you want to pay the price to live in an apartment building that is right next to Central Park. Then, your thoughts should turn to resale value. From a financial perspective, it is okay to spend more, if you can afford it, providing the value holds up when it is time to sell.

Based on the median price over the last five years, the differential increased from 2013 to 2015, but it narrowed in 2016 through August 2018. There are other factors to consider that can impact resale value, which you can discuss with your buyer’s agent, though.

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What to Consider Before Signing Your NYC Lease Agreement

New York City’s rental market is notoriously difficult to navigate. With sky-high rents, it is a challenge to find an acceptable, affordable apartment. When you do, it is tempting to sign the lease right away. But, jumping into a rental agreement may cause you headaches later on, either through an unscrupulous landlord or a genuine misunderstanding.

We provide guidelines for renters on what to look for in a residential lease agreement. Management companies, landlords, and real estate agents commonly use REBNY Leases or Blumberg Leases. We suggest perusing both to familiarize yourself with the forms.

A legal document

A lease agreement is a legal document, which is generally binding (unless there are illegal clauses). Therefore, you need to read the document carefully. It should include all the terms you have agreed to, such as the rental amount, when it is due, and how late payments are assessed. You will also need to know if your monthly rent covers utilities and which ones it includes (e.g., electricity).

Additionally, the document should contain the lease’s term, the renewal process (e.g., the length of the new term), and the proper notice you need to provide your landlord when you have an interest in renewing your lease.

Upfront costs and your security deposit

Typically, your future landlord requires you to pay the first month in advance, as well as a security deposit. A landlord cannot ask for a higher security deposit from you merely because you have children or a disability. However, he/she can request an additional security deposit or prepaid rent if he/she has certain reservations regarding your financial situation. Some typical scenarios where this occurs include if your annual income is less than 40x the monthly rent, you have a poor credit history, or a low credit score.

He/she uses the deposit to cover any damages, beyond normal wear and tear, when you leave the apartment. Therefore, it behooves you to take pictures and video before moving in. You and the landlord should also walk around the apartment to ensure you are both on the same page and address any issues before moving in.

When you are ready to move, you want to receive your security deposit back. The lease should contain a clause covering when the landlord must return your deposit following his/her inspection. Under New York City law, he/she must return it within a reasonable period of time, but the city notes there is no standard definition.

The landlord must pay interest on your security deposit, providing your building has at least six units. But, he or she can deduct up to 1% of the deposit annually for an administrative fee.

Subletting

The typical agreement requires the landlord’s approval before allowing you to sublet. However, under New York State law, the landlord cannot deny subletting “unreasonably,” or you have the right to cancel your lease. Legally, you are allowed to have roommates, but you must notify your landlord.

Miscellaneous items

You need to know which maintenance and repairs the building are responsible for, and what the owner expects you to do. For instance, the law requires the landlord to paint your unit every three years, if your building has at least three units. You should also inquire as to whether you or the building is responsible for shoveling the snow. 

You should explicitly ask if your landlord allows pets. Do not merely assume that you can have one if your lease agreement does not mention it. Under Fair Housing, if the animal serves a medical purpose, including supporting your emotional or physical needs, the landlord cannot refuse your request, even if there is a no pet policy.

Put it in writing

In order to protect you and prevent future misunderstanding, put everything you have agreed to in the rental agreement.

The post What to Consider Before Signing Your NYC Lease Agreement appeared first on ELIKA Real Estate.

What Happens after Your Offer to Buy an Apartment is Accepted?

So after a long process, you finally have an accepted offer and can look forward to soon being a homeowner in NYC.  But you’re far from finished yet. There’s still the closing process to get through, and there are some necessary steps to overcome before you’re at the finish line. Here’s what to know and what to expect as you move towards closing on an NYC apartment.

Drafting a deal sheet

You may have agreed on a price with the seller, but until you have a signed contract, the agreement is not legally binding. The first step towards this will be circulating a deal sheet. This is done by the seller’s agent and will outline the terms of the deal and the roles of the parties involved. A deal sheet will usually be drafted and sent to both attorneys within 24 and 48 hours after the offer has been accepted. Once the deal sheet has been circulated the seller’s attorney will then draft a contract of sale that will be sent to your attorney.

The contract, escrow, and due diligence

Once your attorney has received the contract of sale, they will begin the due diligence process. The involves reviewing the contract; any riders attached, board minutes and the building’s financials and offering plan. This usually takes five to seven business days. Assuming everything checks out they will forward the contact to you for signing. You’ll also be asked to make the 10% escrow payment. Make sure you’re ready to make the escrow payment as soon as your attorney asks you.

Although it can seem like the deal is now effectively done this is not the time to relax. Until the contract has been signed by both parties, you don’t have a binding contract. The seller has the privilege of being the last person to sign so until they do there’s a chance another buyer with a better offer could come along and swipe the deal from under your feet. If this happens, you might receive a disappointing phone call saying the deal is on hold as a better offer has come through. If that happens, your only recourse will be to try and match or beat the new offer.

This can seem unfair, but it’s the way the real estate game works in New York City. Your best defense against this is to get a written exclusive right to buy agreement from the seller’s broker or attorney. Until you have a counter-signed contract, things are far from certain, especially in a competitive market.

If you’re a cash buyer, you can skip the next step and move forward with a home inspection and scheduling a closing day.

Secure a mortgage

Once you have a counter-signed contract, you are now officially “in-contact” and safe from other bidders. Assuming you’re financing the deal, the next step will be to secure a mortgage from your chosen lender. Ideally, you should already be pre-qualified for your mortgage. This is the initial step in obtaining a mortgage but keep in mind it only gives you a sum you might expect to get. You still need to get pre-approved which is a much more thorough analysis of your finances and ability to purchase a home.

Make sure you have all your financial documents ready such as bank statements, pay stubs, tax returns and a list of all your debts and assets. Your lender will also need a rough estimate of your closing costs within three business days of your loan application.

As part of the loan application, your lender will also conduct a title search on the property. This is to make sure there are no outstanding claims on the property such as tax debts or liens. For this step, you’ll have to purchase title insurance to protect your investment in case anything does come up. You’ll also have to purchase homeowner’s insurance to protect you and the mortgage company.

Conduct a home inspection and appraisal

Almost all purchase contracts will include a home inspection contingency. This means that if the home inspection finds any defects in the property, you can back out of the deal without legal consequences. Most buyers use this as an opportunity to renegotiate for a reduced price or for credits to fix any needed repairs. It will be the buyer’s job to have the inspection performed which will cost $300-$500. This might be a pain, but It’s a small price to pay for the peace of mind you’ll get from it.

One the inspection is completed a home appraisal will be carried out by your mortgage lender. This will determine whether the property is worth what the seller claims. If it comes back as less than expected, you could be asked by your lender to either make a larger down payment or accept a higher mortgage interest rate. If you’ve hired a good real estate agent, they should be able to give you a rough estimate of the appraisal value before you even make an offer.

Final walk-through and closing day

Once you’ve been approved for a mortgage (which usually takes 30-40 days) and all other contingencies, have been met a closing day will be scheduled. The average time to close on a house in NYC once you have a fully executed contract is 30 (if buying all-cash) to 90 days (if financing). The actual closing date won’t be agreed to until about two weeks in advance. As part of the closing, a final walk-through of the apartment will be conducted, either on the day before or on closing day. This will ascertain whether all agreed-upon repairs have been made, that the seller has vacated the property and the house is in the order you expected.

On closing day each party involved will be present. This includes the sellers, buyers, their attorneys, a representative from the title company and your mortgage lender. As the buyer, you’ll need to bring the remaining funds required to close the deal. You’ll then be asked to sign the legal documents. These fall into two categories, those between you and the lender regarding the terms and conditions of your mortgage and those between you and the seller who transfers ownership of the home to you.

In the end, you’ll hand over checks for the remaining balance and closing costs, and you’ll receive a Deed of Trust, Certificate of Occupancy and keys to your new home. Becoming a homeowner in NYC is a long process that comes with plenty of roadblocks. But with the right people by your side and enough preparation, you’ll breeze right through it.

The post What Happens after Your Offer to Buy an Apartment is Accepted? appeared first on ELIKA Real Estate.

What Happens after Your Offer to buy an NYC Apartment is Accepted?

So after a long process, you finally have an accepted offer and can look forward to soon being a homeowner in NYC.  But you’re far from finished yet. There’s still the closing process to get through, and there are some necessary steps to overcome before you’re at the finish line. Here’s what to know and what to expect as you move towards closing on an NYC apartment.

Drafting a deal sheet

You may have agreed on a price with the seller, but until you have a signed contract, the agreement is not legally binding. The first step towards this will be circulating a deal sheet. This is done by the seller’s agent and will outline the terms of the deal and the roles of the parties involved. A deal sheet will usually be drafted and sent to both attorneys within 24 and 48 hours after the offer has been accepted. Once the deal sheet has been circulated the seller’s attorney will then draft a contract of sale that will be sent to your attorney.

The contract, escrow, and due diligence

Once your attorney has received the contract of sale, they will begin the due diligence process. The involves reviewing the contract; any riders attached, board minutes and the building’s financials and offering plan. This usually takes five to seven business days. Assuming everything checks out they will forward the contact to you for signing. You’ll also be asked to make the 10% escrow payment. Make sure you’re ready to make the escrow payment as soon as your attorney asks you.

Although it can seem like the deal is now effectively done this is not the time to relax. Until the contract has been signed by both parties, you don’t have a binding contract. The seller has the privilege of being the last person to sign so until they do there’s a chance another buyer with a better offer could come along and swipe the deal from under your feet. If this happens, you might receive a disappointing phone call saying the deal is on hold as a better offer has come through. If that happens, your only recourse will be to try and match or beat the new offer.

This can seem unfair, but it’s the way the real estate game works in New York City. Your best defense against this is to get a written exclusive right to buy agreement from the seller’s broker or attorney. Until you have a counter-signed contract, things are far from certain, especially in a competitive market.

If you’re a cash buyer, you can skip the next step and move forward with a home inspection and scheduling a closing day.

Secure a mortgage

Once you have a counter-signed contract, you are now officially “in-contact” and safe from other bidders. Assuming you’re financing the deal, the next step will be to secure a mortgage from your chosen lender. Ideally, you should already be pre-qualified for your mortgage. This is the initial step in obtaining a mortgage but keep in mind it only gives you a sum you might expect to get. You still need to get pre-approved which is a much more thorough analysis of your finances and ability to purchase a home.

Make sure you have all your financial documents ready such as bank statements, pay stubs, tax returns and a list of all your debts and assets. Your lender will also need a rough estimate of your closing costs within three business days of your loan application.

As part of the loan application, your lender will also conduct a title search on the property. This is to make sure there are no outstanding claims on the property such as tax debts or liens. For this step, you’ll have to purchase title insurance to protect your investment in case anything does come up. You’ll also have to purchase homeowner’s insurance to protect you and the mortgage company.

Conduct a home inspection and appraisal

Almost all purchase contracts will include a home inspection contingency. This means that if the home inspection finds any defects in the property, you can back out of the deal without legal consequences. Most buyers use this as an opportunity to renegotiate for a reduced price or for credits to fix any needed repairs. It will be the buyer’s job to have the inspection performed which will cost $300-$500. This might be a pain, but It’s a small price to pay for the peace of mind you’ll get from it.

One the inspection is completed a home appraisal will be carried out by your mortgage lender. This will determine whether the property is worth what the seller claims. If it comes back as less than expected, you could be asked by your lender to either make a larger down payment or accept a higher mortgage interest rate. If you’ve hired a good real estate agent, they should be able to give you a rough estimate of the appraisal value before you even make an offer.

Final walk-through and closing day

Once you’ve been approved for a mortgage (which usually takes 30-40 days) and all other contingencies, have been met a closing day will be scheduled. The average time to close on a house in NYC once you have a fully executed contract is 30 (if buying all-cash) to 90 days (if financing). The actual closing date won’t be agreed to until about two weeks in advance. As part of the closing, a final walk-through of the apartment will be conducted, either on the day before or on closing day. This will ascertain whether all agreed-upon repairs have been made, that the seller has vacated the property and the house is in the order you expected.

On closing day each party involved will be present. This includes the sellers, buyers, their attorneys, a representative from the title company and your mortgage lender. As the buyer, you’ll need to bring the remaining funds required to close the deal. You’ll then be asked to sign the legal documents. These fall into two categories, those between you and the lender regarding the terms and conditions of your mortgage and those between you and the seller who transfers ownership of the home to you.

In the end, you’ll hand over checks for the remaining balance and closing costs, and you’ll receive a Deed of Trust, Certificate of Occupancy and keys to your new home. Becoming a homeowner in NYC is a long process that comes with plenty of roadblocks. But with the right people by your side and enough preparation, you’ll breeze right through it.

The post What Happens after Your Offer to buy an NYC Apartment is Accepted? appeared first on ELIKA Real Estate.

6 Big Reasons Not to Buy a Home

Becoming a homeowner has long been considered a part of the American dream. But just because you can buy a home now doesn’t mean you should. This will be one of the most important financial decisions you ever make. A real estate agent will be there to help you through every step of the way, but a good agent will be looking out for your best interests. Sometimes it’s better to wait and under the following circumstances, it’s better to hold off on buying a home, at least for now. Here are five circumstances when a good agent would talk you out of buying a home.

Your credit is bad or could be better

You don’t need perfect credit to buy a home but if there’s room for improvement then it’s definitely better to wait. A poor credit score could mean being refused a mortgage and even if you do secure one you’ll most definitely have a higher interest rate. Mortgage lenders take everything into account when determining how much to approve you for and the details of the loan. This includes your credit history, debt-to-income ratio, and any other loans you may be paying off such as car loans, student loans, and credit card debt.

For an FHA loan, you’ll typically need a credit score of at least 580 while for a conventional one you’ll need a minimum of 620. If you can raise your credit score over the next year by paying off your debts (aim for a score of 700) then you’ll be in a much strong position to secure a mortgage.

You don’t know your timeline

Many first-time buyers overlook how important it is to know your timeline for moving. Until you know exactly when you need to move by its better to put off even making an offer. It frustrates the buyers as it leaves the scheduling for the closing date in question. Perhaps you’re waiting to sell your current home and don’t even have an offer yet. Maybe you need to wait for your current lease to expire. If you don’t have an exact moving date or even a rough estimation, it’s better to wait on making an offer until you’re sure.

You don’t have enough to make home repairs and renovations

If the cost of buying a home is already stretching your home budget, to begin with, you probably won’t have enough to cover the inevitable costs of repairs and renovations. A tight budget will mean limiting your buying options to homes in need of some maintenance. Before you make an offer, you should know what you’re getting into. At the least, you should have a home inspection contingency included in the purchase contract. That way, if the inspection finds that repairs beyond your budget are needed you’ll have a way out of the deal.

Little job security

A prerequisite for buying a home is financial security. If you feel that your job may be in jeopardy then now is not a good time to buy a home. The reason most people go into foreclosure is that they lose their jobs and can no longer keep up with their mortgage payments. Anyone who becomes unemployed tends to prioritize buying groceries and keeping gas in the car rather than keeping up with their monthly payments. Unless you feel your job is secure it’s better to put off buying a home.

There is a declining real estate market

Any agent worthy of the name would advise you against buying a home if the market is facing a potential correction or going through one already. People who buy in a declining market will feel a cold sweat as their equity complete disappears as the market continues to decline. Buying in a falling market means that if you put 20% down on a home and the market declines by 5% you’ve now lost 25% of your investment. The only justification for buying in a declining market is when you’re speculating and predicting that the market will soon rise again. A good agent will generally advise against this as predicting the market is notoriously difficult and risky.

You don’t feel ready

Most importantly, you need to feel ready to buy a home. Becoming a homeowner comes with a lot more commitment and responsibilities than being a renter. if you don’t feel confident that now is the right time for such a huge financial and emotional commitment then it’s better to wait. An unconfident buyer only frustrates the buying process and in turn, makes your agent unconfident when it comes

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80% Carpeting Rule: How to Choose An Area Rug

Choosing an area rug for a space is a task that can quickly veer into troubled waters; pick the wrong one, and it will throw off the entire feel of the room.  Choose the right textile, however, and it can brighten and lift the aesthetic.  This is just because of an area rug, as the term indicates, is a significant design item; covering most of the floor surface of a room and more or less setting the visual mood.  There is no need for trepidation when shopping for one though; evaluating your options using the following categories will simplify the process and give you confidence in your decision.

Color

Color, and we’ll include a pattern in this category, should be the first point of reference.  If the other design elements (furniture, lighting, paint, etc.) are already in place, then use the tones and aesthetic of those pieces as a guide.  If the room is dominated by a lot of light pastels, choose a rug with a similar color and shade.  If leaning toward something with a bold pattern and multiple colors, it’s best to place that piece first, then add the rest of the decor using the rug as a reference.

Generally speaking, if the furnishings and wall coverings have been installed it is easier to go with a neutral tone; a natural fiber rug like sisal or something with a simple pattern that nods to the wall color.  Don’t be shy though, if a boldly patterned textile speaks to you, and its tones are on par with the aesthetic of the space, go for it.  It may be just the thing that lifts the design level of the room from safe to compelling.

Texture

This is an often overlooked aspect in the choice of an area rug.  Most people naturally don’t look past the color and pattern-especially when shopping online-but they should.  Well curated textures will add depth and layers to the design of a space.  Look for pieces that contrast with the existing textiles.  If you have a couch with a soft, heavily textured upholstery, choose a rug with a low pile made from a material like jute.  Should your room include smoother surfaces such as a leather sectional or chairs, aim for something full and fluffy like a hand-woven Moroccan kilim.  Apply the same principle with smaller decor items like pillows and throws for a luxurious, layered feel.

Size

Sizing a rug is a relatively straightforward part of the process, but don’t be tempted to go against the rules because an attractive piece isn’t available in a suitable size.  Undersizing an area rug will make a room feel small and awkward.  As a rule, covering the seating area is the standard, but making sure at least the front legs of chairs are on the textile is a satisfactory compromise.  Most importantly, you and your guest’s feet should be touching the rug when seated.

When it comes to a dining room, the chairs should all have room to be pulled out from under the table while still on the textile.  If it’s a bedroom rug your sizing, it should extend at least a couple of feet beyond the bed, so that upon waking your feet find a soft landing.  Also to be considered is orientation; rectangular pieces fit rectangular spaces while square rooms look natural with square or round rugs.  This may sound obvious, but again, it’s easy to be tempted away from a proper size when falling for an attractive textile not available in the right dimensions.

80% Carpeting Rule

If you live in a dense city such as New York, then an area rug may be more than merely an item of decor.  While not an actual law on the books, many lease agreements-especially in NYC-require at least 80% coverage of floor space with carpeting.  The primary aim of the rule is, of course, noise reduction; though how effective it is is up for debate.  In any event, if you happen to live in such a building and wish to comply with the lease, then curating a selection of elegant area rugs to adorn your apartment is paramount (not to mention a much better option than carpeting).  Consider this while sizing your textiles, and if the rug you want isn’t available in the proper dimensions, try layering it over a more substantial piece in a neutral material such as hemp or seagrass.

Keep these four principles in mind while shopping and the experience will be simple, stress-free, and the results exceptional.  Setting boundaries while designing is a good rule of thumb in general; limiting the choices frees you up and prevents the paralysis of infinite options.  It’s a concept that can be applied not just to the choosing of a rug, but the space as a whole.

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How to Choose the Best Neighborhood?

Your dream home may turn into a nightmare if it’s in the wrong neighborhood. Begin by thinking about the activities that are most important in your daily life: place of worship, clubs, yoga class, the theater, favorite shops, and markets, for example. As you look at various neighborhoods, consider how a move would affect your participation in the activities you enjoy the most.

Moving to a new neighborhood can feel like relocating to another state. Buyers can find themselves so obsessed with square footage and amenities that they forget to check out the quality of life in the neighborhood. Safety, access to the things you need, and the ability to get around are major concerns before moving. Properly check out what’s available, and you won’t make the mistake of renting or buying a great home in a terrible neighborhood.

New York City has a diverse collection of neighborhoods. Before you decide that a certain neighborhood fits your lifestyle, consider the points below.

Family Considerations

If you have — or plan to have — children, you should look carefully at the local school district. The website InsideSchools.org offers a comprehensive and independent look at city schools. Even if you don’t use the local public school, choosing a home in a good school district may improve your home’s value if you decide to sell at a later date.

If your children are enrolled in a private school, consider how your move will impact their daily commute.

Consult an Expert

Talk to your real estate agent about average home prices,  vacant properties, the average length of time properties remain on the market, and whether price trends are increasing and declining in the neighborhoods, you are considering. This will help you identify desirable locations that will enhance and protect your home investment when buying.

Prices

New York City has a high cost of living, especially when it comes to buying and renting real estate. Don’t expect to find a cheap place, even if you’re okay with living off the beaten track.

Prices fluctuate quickly as some neighborhoods become trendy and others lose their appeal.

Currently, Tribeca is the most expensive neighborhood. If renting expect a one-bedroom apartment in Tribeca to cost about $4,000. You can cut that price down by moving to Astoria, where a one-bedroom rental only costs about $1,850.

If you want a hip neighborhood with decent prices, look to Williamsburg, Greenpoint, and Brooklyn Heights. Those areas have one-bedroom rentals between $2,000 and $3,000.

Crime Rates

You should also consider the different crime rates in New York City neighborhoods. Luckily, the New York City government makes it pretty easy for you to check crime rates in different areas.

Research crime statistics in neighborhoods you like. Look at both the number and type of crimes that are reported, and whether the numbers are increasing or decreasing. Try to determine if crimes are clustered in a specific area, such as a retail outlet.

Stop by the local city economic development office and get statistics on average income and property values for your desired neighborhoods, and if they have increased or decreased over time. Find out how many properties are owner-occupied versus rental units. As a general rule, areas with a higher ratio of owner-occupied homes will have higher property values.

Consider how much crime you and your family can tolerate, and choose your neighborhood accordingly. It will have a huge influence on your experience living in New York.

Culture

New York City is a cultural hub, but each neighborhood has a unique flavor. Investigate those cultures before choosing a neighborhood.

If you don’t care about going out on the town, then the Upper East Side’s quiet streets could suit you well. If you want to enjoy museums and parks without getting on the subway, consider apartments in Midtown or the Upper West Side.

Those who prefer eclectic shops and entertainment should think about crossing over to Williamsburg, Bushwick, Cobble Hill or Brooklyn Heights. These hip neighborhoods have a lot of up-and-coming artists, bands, and entrepreneurs.

In addition to the neighborhood culture, you should spend some time thinking about the building you live in. The Upper East Side might offer plenty of quiet for most residents, but experiences are different if you live in an apartment above a bar, club, or restaurant.

Parks and Recreation

If you have children, you can learn a lot by visiting the local playground. Watching how parents interact with their kids, and the general atmosphere can tell you whether an area is safe or not. New York City has laws against those without children visiting a playground, but your local park can offer the same kind of sightseeing with a purpose for those without children. We sometimes overlook the importance of liking our neighbors, and parks offer neutral ground to get to know them.

Market and Food

Supermarkets carry different qualities and varieties of foods, so you can get a dose of local flavor by visiting one. Local options for quick food often come down to convenience, but do you really want to take a train or taxi to get a burrito at midnight when you’re hungry? Checking out the restaurants and bars also help give you some idea of local nightlife. Will you need to travel to find a good time?

Visit the Bodega

The bodega can tell you a lot about the neighborhood and offer some conveniences and comforts. Things to look for include:

Beer selection: craft beers suggest a younger crowd.
Ethnic foods: if you want to know what cultures you might encounter, check out the foods on offer.
Perks: bodegas generally offer a quick stop for coffee or a newspaper, but some are experimenting with higher quality coffee or special snacks to attract new faces.

Nearby Train Stations

The local stops can tell you a lot about foot traffic in your area and when it gets most hectic. NYC is a busy city, so you should never expect complete calm, but you can tell when rush hour hits and plan your schedule accordingly.

Take a Night Stroll

One of the best ways to tell whether your neighborhood is safe is taking an evening stroll. The later the better, with midnight being a good cutoff point. Are streets well lit, and is there enough activity among residents or incoming traffic? Do you feel safe walking alone? How much you’ll tolerate is up to you, but you’ll be thankful you took the time to ensure safety the next time you have to make a midnight run for something.

Find Important Landmarks

Important landmarks act as more than just guides, and libraries are a good example. Lots of events that help get you acquainted with your neighborhood tend to be held at libraries. Other important places to look for include schools, firehouses, and police stations.

Choosing the ideal neighborhood in New York City can seem like a daunting task, but you can learn a lot by simply scoping out the area beforehand.

Types of Housing

Some neighborhoods have become associated with certain types of housing. If you prefer a specific type of housing, then you can narrow down your choices.

If you like brownstones, try Brooklyn Heights and the Upper East Side. Some brownstones have been split into apartments. Others are much like townhouses, which usually cost more.

If you like loft apartments, look to downtown New York City. Any neighborhood that once had a lot of unused commercial space will probably have loft apartments. These apartments can give you a lot of space for your money and are ideal for people who love open areas.

If you want to buy or rent a stand-alone house, you will need to drive away from the city’s center. Places like Sheepshead Bay in Brooklyn have beautiful stand-alone homes. You can also find stand-alone homes in some parts of Queens and Long Island.

Take a Walk

Once you’ve selected a few neighborhoods, plan a visit to walk—not drive—around. Are the homes well maintained? Are the streets clean and quiet? Consider striking up a conversation with a potential neighbor working or playing outside, and ask her how she likes the neighborhood.

Try to visit the property at night and take a walk to a nearby restaurant and back again, as if you were living in the home.

In many cases, the ideal neighborhood will just “feel” right when you visit, and having all the relevant statistics and information will support your decision.

Now that you know a little more about housing in New York, what neighborhood will you focus on?

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Tenants’ Rights: Important things NYC Renters must know

Being a renter in NYC can seem like a tough deal. However, knowing your rights will help to ensure an exciting and enjoyable stay. High prices, small apartments and seemingly being at the mercy of your landlord can undoubtedly make it look that way. However, you’d be wrong to think that it’s all in favor of the landlord. In fact, the city has begun clamping down hard on all kinds of shady practices by landlords. Tenants have rights too but unless you know about them how can you make use of them?

Here are the rights that every NYC tenant needs to know
The Premises must be Livable

All tenants have the right to livable and clean premises provided by the landlord. A comfortable and clean apartment is defined as habitable, fit for uses by all parties and free from anything dangerous. Once the tenant occupies the unit, these rights transfer over with no fault to the landlord if an issue arises. Tenants also have the right to protection against lead paint, timely repairs and maintenance, access to hot water, high-quality smoke detectors, locks on doors, and bed bug and rodent prevention. Tenants also have the right to quiet enjoyment.

The right to privacy

Does your landlord often make unannounced visits or come and go when you’re not around? This sort of thing gives many tenants pause as they might imagine, as the landlord is the owner, they have a legal right to enter at any time. This is not the case. Most leases will give you the right “to quiet enjoyment of your apartment.” This has little to do with any rights to it being quiet (good luck finding that in NYC!) but that you have the right to enjoy the apartment to the exclusion of others.

For a landlord to enter your apartment, they must provide notice and have adequate reasons such as repairs or showing the home to potential renters. The only time a landlord can enter without notice is in an emergency.

Security and Protection

The landlord, by law, is required to provide a protected living environment. The buildings’ main entrance doors must be locked at all times with a two-way locking system and intercom. Buildings that house eight or more units must have a lobby service. Elevators are also required to have mirrors. Within each apartment, approved smoke and carbon monoxide detectors must be within 10-feet of sleeping rooms. Tenants also have rights to personal door locks, peepholes, and mailboxes.

Maintenance issues and Repairs

For maintenance issues and repairs, the landlord has the right to enter each unit given that it is a reasonable time and way. If the landlord fails to follow this, the penalty is a criminal violation. If the tenant pays utility directly, that amount can be deducted from rent. Otherwise, the landlord uses a portion of rent to pay for utilities. If the landlord fails to pay, he is liable for compensation and punitive damages. Regarding heating and hot water usage, the tenant must have access to hot water 24 hours a day, all year round. Heating equipment will be supplied from October through the end of May with an indoor temperature of 68 degrees when outdoor temperatures are below 55.

Subletting

Before subletting make certain that you have the permission to do so according to your lease terms. If allowed a written request that includes the length of a sublease, name, business, and address of subtenant, reason for subletting, and tenant’s address during this period along with written consent of co-tenants must be sent to the landlord. The landlord then has the right to ask for more information but must provide a tenant with a decision within 30 days. If landlord unreasonably refuses, a tenant can either terminate the lease or still sublet.

The relationship between Tenant and Landlord

NYS law requires that all landlords provide their tenants with a safe and livable environment. For instance, property owners in NYS are required by law to provide hot water for 365 days a year at a minimum temperature of 120 degrees Fahrenheit. If your landlord is harassing you with offers to buy-out, eviction notices and creating unlivable conditions you have the right to seek protection. You could enlist the help of a tenant lawyer or form a tenant association with your neighbors.

It is important for the tenant and landlord to have a trusting relationship. This will ensure a positive living experience with open communication which leads to having rent, bills, and maintenance problems paid and dealt with professionally. If your landlord refuses a prompt response, according to the New York City Rent Guidelines Board, there are specific steps one can take. It’s important to acknowledge that this relationship should be mutually beneficial.

The right to not be evicted without one day in court

Have you come home to find new padlocks on the door? As much as a landlord might try to scare you with such a scenario, there are specific conditions that must first be met. To begin an eviction, the landlord must first have reasonable cause. It could be non-payment of rent, violation of the lease terms or the ending of a fixed time.

Whichever one it is it has to be provided on the written notice. Even under these conditions, a landlord must still take the tenant to court, win, and receive a “Warrant of Eviction” before the tenant can be legally evicted. Also, regardless of your ability to pay, recent legislation entitles all tenants to legal representation.

The right to form associations

As alluded to above, you have the right to organize and form associations with your other neighbors. By finding strength in numbers, you can bring all your recourses together to stand up to a difficult landlord. If you need to hire a lawyer, these unions can help in splitting the legal costs. The unions are also helpful on an individual basis for dealing with small issues.

The right to roommates

NYC renters who live in privately-owned condominiums or buildings and are the only person on the lease have a right to share the home with a roommate. You must provide your landlord with 30 days’ notice of this, so long as you’ve been a responsible tenant up until then, it shouldn’t be a problem.

This can be either a relative or a friend, along with their dependent children. It’s entirely up to you whether or not they pay part of the rent. However, don’t get this confused with subletting which is a different thing. Keep in mind as well that there are still laws on overcrowding so the landlord may limit the number of people you can take in.

Renter’s Misconceptions

As a renter, it’s important not to overlook common misconceptions about security deposits, brokerage fees, and time span allotted for rent payment and maintenance response; most of which will be defined in your rental lease agreement.

For more rules and guidance on your rights as a renter, visit the Metropolitan Council on Housing.

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