1 00:00:05,240 --> 00:00:07,320 Speaker 1: I once heard it said that moving is one of 2 00:00:07,360 --> 00:00:10,120 Speaker 1: the most stressful times in a person's life, right after 3 00:00:10,200 --> 00:00:13,720 Speaker 1: losing a job and losing a loved one. But despite 4 00:00:13,760 --> 00:00:16,680 Speaker 1: the stress of finding a home and moving, there's something 5 00:00:16,760 --> 00:00:18,800 Speaker 1: kind of freeing about getting a place of your own, 6 00:00:19,000 --> 00:00:21,880 Speaker 1: even if it's with roommates, because now you get to 7 00:00:21,880 --> 00:00:24,400 Speaker 1: set the rules. You get to make the choices on 8 00:00:24,480 --> 00:00:27,880 Speaker 1: home decor and furnishings or lack thereof. You get to 9 00:00:27,880 --> 00:00:30,880 Speaker 1: decide what home is to you and how to utilize 10 00:00:30,880 --> 00:00:33,760 Speaker 1: the space. While a number of young people these days 11 00:00:33,760 --> 00:00:35,760 Speaker 1: are choosing to live at home with their parents longer, 12 00:00:35,920 --> 00:00:38,240 Speaker 1: there are still a lot of people under the age 13 00:00:38,240 --> 00:00:40,519 Speaker 1: of thirty five dipping their toes into the world of 14 00:00:40,560 --> 00:00:44,200 Speaker 1: living on their own as renters. In fact, younger millennials 15 00:00:44,200 --> 00:00:47,360 Speaker 1: and gen Zers accounted for nearly thirty five percent of 16 00:00:47,440 --> 00:00:50,320 Speaker 1: all renters across the US, and that's according to US 17 00:00:50,320 --> 00:00:53,800 Speaker 1: Census data from twenty twenty one. Renting can be a 18 00:00:53,800 --> 00:00:57,040 Speaker 1: great way to gain some housing independence at a relatively 19 00:00:57,080 --> 00:01:00,280 Speaker 1: low investment cost, because, unlike buying a house where you 20 00:01:00,400 --> 00:01:02,160 Speaker 1: have to put up a large sum of money as 21 00:01:02,200 --> 00:01:05,600 Speaker 1: a down payment, renting typically only requires a first month's 22 00:01:05,640 --> 00:01:09,000 Speaker 1: rent and security deposit the ladder of which you should 23 00:01:09,080 --> 00:01:11,160 Speaker 1: get back when you move out, that is, if you've 24 00:01:11,240 --> 00:01:14,240 Speaker 1: left the place in decent condition, and occasionally you may 25 00:01:14,319 --> 00:01:16,040 Speaker 1: also have to pay a broker fee, but we'll get 26 00:01:16,080 --> 00:01:19,160 Speaker 1: into that more later. The point is, even with all 27 00:01:19,200 --> 00:01:22,600 Speaker 1: of these upfront payments, renting still feels simpler and more 28 00:01:22,600 --> 00:01:29,200 Speaker 1: feasible than buying a house for many of us. But 29 00:01:31,080 --> 00:01:35,000 Speaker 1: renting is not without its nuances or complexities. For starters, 30 00:01:35,080 --> 00:01:38,280 Speaker 1: it can be incredibly frustrating trying to find the right 31 00:01:38,319 --> 00:01:41,920 Speaker 1: place and understanding the coded language from apartment listings like 32 00:01:42,400 --> 00:01:46,760 Speaker 1: conveniently located bathroom just means you can microwave your breakfast 33 00:01:46,800 --> 00:01:48,960 Speaker 1: burrito from the toilet and the shower is next to 34 00:01:48,960 --> 00:01:52,000 Speaker 1: the refrigerator. Fear not, We're here to take all of 35 00:01:52,040 --> 00:01:54,440 Speaker 1: the guest work out of finding a home, and hopefully, 36 00:01:54,600 --> 00:01:57,080 Speaker 1: in the process we'll finally figure out the difference between 37 00:01:57,080 --> 00:02:01,200 Speaker 1: rent controlled and rent stabilized. So start taking because this is. 38 00:02:04,080 --> 00:02:05,000 Speaker 2: Stuff. 39 00:02:07,960 --> 00:02:10,840 Speaker 1: Hello to one and all seeking guidance in the world 40 00:02:10,840 --> 00:02:13,120 Speaker 1: of grown up stuff. You have come to the right place. 41 00:02:13,760 --> 00:02:16,120 Speaker 1: As always, Matt and I are here to tackle all 42 00:02:16,120 --> 00:02:18,040 Speaker 1: of the adult things that no one really tells you 43 00:02:18,080 --> 00:02:21,120 Speaker 1: about like finding and leasing an apartment, which is our 44 00:02:21,120 --> 00:02:24,160 Speaker 1: mission for today's episode. Matt you and I have both 45 00:02:24,160 --> 00:02:26,919 Speaker 1: rented apartments in big cities like New York, and I 46 00:02:26,960 --> 00:02:29,720 Speaker 1: think we should start this episode off by sharing our 47 00:02:29,760 --> 00:02:31,920 Speaker 1: own personal renting pros and cons. 48 00:02:32,480 --> 00:02:34,160 Speaker 3: Yeah, to get into the pros and cons, let me 49 00:02:34,200 --> 00:02:36,799 Speaker 3: tell you about a situation that I am in. So 50 00:02:37,320 --> 00:02:40,240 Speaker 3: I currently live in the same apartment that I have 51 00:02:40,320 --> 00:02:43,560 Speaker 3: lived in since graduating from college in New York. So 52 00:02:43,720 --> 00:02:46,520 Speaker 3: I've been here for eleven years, a long time. It's 53 00:02:46,520 --> 00:02:49,400 Speaker 3: funny because my parents were just visiting me and they're like, Matthew, 54 00:02:49,919 --> 00:02:52,560 Speaker 3: I never would have imagined when we moved you into 55 00:02:52,639 --> 00:02:55,360 Speaker 3: this apartment that you now live there with your wife. 56 00:02:55,680 --> 00:02:58,240 Speaker 3: And so, really the pros and cons that I'm trying 57 00:02:58,280 --> 00:03:00,000 Speaker 3: to get out here is that when you graduate colleg 58 00:03:00,120 --> 00:03:02,959 Speaker 3: you never really know whether or not you're going to 59 00:03:03,040 --> 00:03:05,880 Speaker 3: stay in the city that you maybe graduated in or 60 00:03:05,919 --> 00:03:08,040 Speaker 3: stay in the first city that your first job is in. Right, 61 00:03:08,360 --> 00:03:10,760 Speaker 3: You're not sure, and so renting can be wonderful because 62 00:03:10,760 --> 00:03:12,359 Speaker 3: it provides you, like a year or a two year 63 00:03:12,440 --> 00:03:14,480 Speaker 3: lease to get comfortable with the city you're in and 64 00:03:14,520 --> 00:03:16,239 Speaker 3: see whether or not you like it, and if you don't, 65 00:03:16,240 --> 00:03:18,400 Speaker 3: you can kind of pick up and move on after 66 00:03:18,440 --> 00:03:20,760 Speaker 3: that without investing a whole lot of money. 67 00:03:21,080 --> 00:03:23,880 Speaker 1: Yeah, what I really love about renting is I'm not 68 00:03:24,000 --> 00:03:28,160 Speaker 1: responsible for a dang thing. If it breaks nothing. If 69 00:03:28,200 --> 00:03:31,400 Speaker 1: something breaks zilch, I just call up the landlord. I 70 00:03:31,440 --> 00:03:33,640 Speaker 1: call up the management company and I'm like, hey, this 71 00:03:33,720 --> 00:03:38,119 Speaker 1: isn't working anymore. You know, then they're responsible for replacing. Now, 72 00:03:38,200 --> 00:03:40,320 Speaker 1: the con on my end is it's not one hundred 73 00:03:40,320 --> 00:03:43,000 Speaker 1: percent your own space. You might not even be able 74 00:03:43,040 --> 00:03:45,160 Speaker 1: to do things like paint your room a different color 75 00:03:45,480 --> 00:03:48,640 Speaker 1: or you know, mount your TV because those are going 76 00:03:48,720 --> 00:03:52,000 Speaker 1: to put holes in the wall. So to help us 77 00:03:52,080 --> 00:03:54,960 Speaker 1: understand what we need to know about finding and renting 78 00:03:55,000 --> 00:03:58,840 Speaker 1: an apartment, we've invited Mark Metzker, a licensed real estate 79 00:03:58,840 --> 00:04:01,840 Speaker 1: agent in New York City with the Corcoran Group. Now 80 00:04:01,920 --> 00:04:04,520 Speaker 1: this group might sound familiar because it is the real 81 00:04:04,640 --> 00:04:07,640 Speaker 1: estate agency that Shark Tanks owned Barbara Corkran founded. 82 00:04:07,960 --> 00:04:10,880 Speaker 3: Mark has helped more than one hundred New Yorkers find 83 00:04:10,880 --> 00:04:13,680 Speaker 3: their homes. And one important thing we want to note 84 00:04:13,800 --> 00:04:15,600 Speaker 3: is that a lot of what we will be discussing 85 00:04:15,760 --> 00:04:17,400 Speaker 3: may be more unique to New York. 86 00:04:17,520 --> 00:04:21,560 Speaker 1: Say, that three times fast, Unique York, Unique York. 87 00:04:20,839 --> 00:04:22,600 Speaker 3: Try to trip me up, but I just blew right 88 00:04:22,640 --> 00:04:25,679 Speaker 3: through it. But we're going to keep things as broad 89 00:04:25,680 --> 00:04:28,760 Speaker 3: as possible today and stick around for our takeaways as 90 00:04:28,760 --> 00:04:31,599 Speaker 3: will provide a few renting resources for other cities across 91 00:04:31,600 --> 00:04:33,200 Speaker 3: the country that may be helpful to you. 92 00:04:35,839 --> 00:04:38,719 Speaker 1: Mark, Thank you so much for joining us in your opinion. 93 00:04:38,720 --> 00:04:41,800 Speaker 1: What are some of the most reliable websites we can 94 00:04:41,880 --> 00:04:44,400 Speaker 1: be going to just get it started to even start looking. 95 00:04:45,400 --> 00:04:48,200 Speaker 2: I think the best place to start is a website 96 00:04:48,200 --> 00:04:52,839 Speaker 2: called street Easy, which is run by a organization called Zillo, 97 00:04:53,120 --> 00:04:55,719 Speaker 2: which the rest of the country will likely use Zillo 98 00:04:56,000 --> 00:04:57,920 Speaker 2: for this same service, but here in New York City 99 00:04:57,920 --> 00:05:00,680 Speaker 2: we have a specific one called street Easy. What's really 100 00:05:00,720 --> 00:05:04,320 Speaker 2: great about street Easy is that you are only allowed 101 00:05:04,320 --> 00:05:07,720 Speaker 2: to have one listing per apartment, so you're not going 102 00:05:07,760 --> 00:05:12,520 Speaker 2: to have many different brokers or companies trying to list 103 00:05:12,600 --> 00:05:17,480 Speaker 2: the same exact unit. It's transparent, it's clear, and pretty 104 00:05:17,520 --> 00:05:20,479 Speaker 2: much anything that's on the market will be listed on 105 00:05:20,560 --> 00:05:23,720 Speaker 2: this website. And there's a really great interface for it, 106 00:05:23,760 --> 00:05:26,400 Speaker 2: and it'll let you put in what you're looking for, 107 00:05:26,640 --> 00:05:29,560 Speaker 2: like the different neighborhoods you might be interested in the 108 00:05:29,560 --> 00:05:32,800 Speaker 2: budget that you're looking at certain amenities that you might 109 00:05:32,839 --> 00:05:35,240 Speaker 2: want in your apartment, like if you want laundry in 110 00:05:35,279 --> 00:05:38,800 Speaker 2: your unit, whether that's a requirement or just a preference, 111 00:05:39,400 --> 00:05:41,919 Speaker 2: if you need an elevator, all kinds of things like that, 112 00:05:42,240 --> 00:05:44,479 Speaker 2: A lot of results will pop up for you. I 113 00:05:44,520 --> 00:05:46,640 Speaker 2: know a lot of people also like Redfinn as a 114 00:05:46,760 --> 00:05:49,800 Speaker 2: very similar resource, but I would say my bias is 115 00:05:49,839 --> 00:05:53,080 Speaker 2: definitely towards solo and street easy awesome. 116 00:05:53,440 --> 00:05:56,479 Speaker 1: So I'm curious to you because you're a broker. Can 117 00:05:56,600 --> 00:06:01,520 Speaker 1: you just walk into any real estate business and say, Hey, 118 00:06:01,640 --> 00:06:03,839 Speaker 1: I need an apartment. Can I have a broker to 119 00:06:03,839 --> 00:06:04,880 Speaker 1: help me find that? 120 00:06:05,760 --> 00:06:09,159 Speaker 2: Yeah, you can actually definitely do what you just said. 121 00:06:09,400 --> 00:06:11,599 Speaker 2: And if you're really just wanting to meet someone, you 122 00:06:11,640 --> 00:06:14,400 Speaker 2: can walk to an office, like you can walk to 123 00:06:14,480 --> 00:06:16,679 Speaker 2: my Corcoran office and you can knock on the door 124 00:06:16,720 --> 00:06:20,279 Speaker 2: and say hello, I would really like to work with 125 00:06:20,440 --> 00:06:23,839 Speaker 2: an agent on finding an apartment, and there'll probably be 126 00:06:23,920 --> 00:06:27,120 Speaker 2: fifty people who will flock at you to grab your 127 00:06:27,120 --> 00:06:29,880 Speaker 2: hand and help you out. Another way is to go 128 00:06:29,960 --> 00:06:32,839 Speaker 2: on our websites, like you could go to corcorand dot 129 00:06:32,880 --> 00:06:35,160 Speaker 2: com and you could search for different agents, you can 130 00:06:35,200 --> 00:06:38,799 Speaker 2: read people's bios and profiles and look at what people 131 00:06:38,839 --> 00:06:42,400 Speaker 2: have rented before to see if that person is someone 132 00:06:42,400 --> 00:06:44,599 Speaker 2: that you want to work with, or on the flip side, 133 00:06:44,600 --> 00:06:47,440 Speaker 2: if you're really just looking for a specific apartment that 134 00:06:47,480 --> 00:06:49,719 Speaker 2: you want to rent, you can just go to the 135 00:06:49,800 --> 00:06:53,080 Speaker 2: listings that are posted on the website, whether that's street 136 00:06:53,120 --> 00:06:56,359 Speaker 2: easy or a place like corcorand dot com or apartments 137 00:06:56,360 --> 00:06:58,800 Speaker 2: dot com. All of these listings are going to be 138 00:06:58,839 --> 00:07:01,880 Speaker 2: linked directly to an agent, and from there you can 139 00:07:01,920 --> 00:07:04,160 Speaker 2: then start a conversation about the ways in which they 140 00:07:04,200 --> 00:07:07,880 Speaker 2: can help you, because typically agents won't only be working 141 00:07:07,920 --> 00:07:10,960 Speaker 2: on one specific apartment. They can take you to lots 142 00:07:10,960 --> 00:07:13,880 Speaker 2: of other different places that also fit your needs. So 143 00:07:14,120 --> 00:07:16,680 Speaker 2: just starting up a conversation through a listing is a 144 00:07:16,680 --> 00:07:18,360 Speaker 2: great way to just get the ball rolling. 145 00:07:19,200 --> 00:07:21,080 Speaker 1: What are the things that we need to be telling 146 00:07:21,280 --> 00:07:23,800 Speaker 1: these agents and brokers that we're working with to make 147 00:07:23,800 --> 00:07:26,320 Speaker 1: sure that we're getting and finding the right listings that 148 00:07:26,520 --> 00:07:29,680 Speaker 1: are within our budget that check all of our boxes. 149 00:07:30,520 --> 00:07:33,280 Speaker 2: So the things I think one should really be clear 150 00:07:33,320 --> 00:07:37,720 Speaker 2: with a broker about is first, when they're moving, if 151 00:07:37,840 --> 00:07:41,160 Speaker 2: there's a specific date, that's very helpful. If it's flexible 152 00:07:41,520 --> 00:07:45,040 Speaker 2: that works too, but usually one can only rent an 153 00:07:45,040 --> 00:07:48,840 Speaker 2: apartment within a certain amount of time, like here in 154 00:07:48,880 --> 00:07:52,160 Speaker 2: New York, typically thirty days. If you're moving further out 155 00:07:52,160 --> 00:07:55,240 Speaker 2: than thirty days, like say it's April first today and 156 00:07:55,560 --> 00:07:58,960 Speaker 2: you're moving in July, that's probably not going to happen, 157 00:07:59,400 --> 00:08:02,120 Speaker 2: and the search is to want to start later, or 158 00:08:02,160 --> 00:08:03,960 Speaker 2: there's just going to be a small number of apartments 159 00:08:03,960 --> 00:08:06,680 Speaker 2: that are on the market already. The second thing you 160 00:08:06,680 --> 00:08:08,840 Speaker 2: want to be really clear about is your budget. As 161 00:08:08,840 --> 00:08:12,040 Speaker 2: you mentioned with the budget, you want to be clear 162 00:08:12,120 --> 00:08:15,040 Speaker 2: with the agent how much you are really willing to spend, 163 00:08:15,520 --> 00:08:19,160 Speaker 2: and you should give the agent, I think what your 164 00:08:19,200 --> 00:08:22,280 Speaker 2: desired amount is and what your maximum amount is, and 165 00:08:22,320 --> 00:08:25,680 Speaker 2: that'll allow the agent to really understand what the wiggle 166 00:08:25,720 --> 00:08:29,080 Speaker 2: room is and the different places that they can show you. 167 00:08:29,760 --> 00:08:32,120 Speaker 2: Here in New York City, there's often a broker fee 168 00:08:32,160 --> 00:08:35,480 Speaker 2: that's associated with finding an apartment, so you should also 169 00:08:35,520 --> 00:08:38,200 Speaker 2: be clear with the agent about if you're able to 170 00:08:38,240 --> 00:08:40,920 Speaker 2: pay the broker fee or not. How much you are 171 00:08:40,960 --> 00:08:44,120 Speaker 2: able to pay. Typically the amount is one month's rent 172 00:08:44,360 --> 00:08:47,120 Speaker 2: to fifteen percent of the annual rent of an apartment 173 00:08:47,200 --> 00:08:49,600 Speaker 2: is the broker fee, So you should just understand what 174 00:08:49,640 --> 00:08:53,080 Speaker 2: you're willing to do on that front regarding paying their fees, 175 00:08:53,120 --> 00:08:54,840 Speaker 2: because they do need to be paid at the end 176 00:08:54,880 --> 00:08:58,240 Speaker 2: of the day, and having a clear understanding of that 177 00:08:58,320 --> 00:09:01,480 Speaker 2: from the beginning is really helpful. There are apartments in 178 00:09:01,520 --> 00:09:04,640 Speaker 2: New York City that have no broker fee. These are 179 00:09:04,640 --> 00:09:09,000 Speaker 2: really wonderful apartments. This is when the management company pays 180 00:09:09,200 --> 00:09:12,439 Speaker 2: our fee instead of the tenant, So if you really 181 00:09:12,480 --> 00:09:15,720 Speaker 2: want that to be the situation, you should be clear 182 00:09:15,720 --> 00:09:18,680 Speaker 2: with the agent. But it also limits the possibilities of 183 00:09:18,720 --> 00:09:21,960 Speaker 2: what apartments you'll have access to, So there's two sides 184 00:09:22,000 --> 00:09:22,559 Speaker 2: to that coin. 185 00:09:23,480 --> 00:09:26,800 Speaker 1: And finding the right broker too, What are some things 186 00:09:26,800 --> 00:09:29,320 Speaker 1: that you would recommend for ways to make sure that 187 00:09:29,440 --> 00:09:32,280 Speaker 1: you know even the broker who's showing us these apartments 188 00:09:32,679 --> 00:09:35,200 Speaker 1: is the right fit and really understands what we're wanting 189 00:09:35,240 --> 00:09:37,120 Speaker 1: and what we need. Sure. 190 00:09:37,480 --> 00:09:40,600 Speaker 2: I think that's all about the relationship, and I think 191 00:09:40,640 --> 00:09:43,800 Speaker 2: the best way to understand that is to really start conversations. 192 00:09:43,920 --> 00:09:46,520 Speaker 2: This could be via email, this could be over a 193 00:09:46,559 --> 00:09:49,240 Speaker 2: phone call. This could be meeting someone in person for 194 00:09:49,280 --> 00:09:51,720 Speaker 2: the first time, but just getting a sense of whether 195 00:09:51,800 --> 00:09:54,000 Speaker 2: you gel with them and if you feel that they 196 00:09:54,080 --> 00:09:56,920 Speaker 2: understand you and what your needs are, and if you 197 00:09:56,960 --> 00:09:59,360 Speaker 2: get along with them. All those kinds of things can 198 00:09:59,400 --> 00:10:02,400 Speaker 2: play in to having a really great relationship with a broker, 199 00:10:02,440 --> 00:10:04,360 Speaker 2: And if it doesn't seem like the right fit, you 200 00:10:04,400 --> 00:10:06,520 Speaker 2: don't have to work with them. You can always go 201 00:10:06,559 --> 00:10:08,720 Speaker 2: and find a different broker. That's not a big deal, 202 00:10:09,360 --> 00:10:11,720 Speaker 2: but I do think there's a lot of benefit actually 203 00:10:11,760 --> 00:10:14,280 Speaker 2: to sticking with the same broker instead of just jumping 204 00:10:14,320 --> 00:10:17,440 Speaker 2: from apartment listing to apartment listing. Like if you're on 205 00:10:17,480 --> 00:10:21,319 Speaker 2: street easy and you find five apartments that you want 206 00:10:21,360 --> 00:10:23,800 Speaker 2: to look at that are all with five different brokers, 207 00:10:23,840 --> 00:10:25,880 Speaker 2: that becomes a big headache and it becomes a big 208 00:10:25,920 --> 00:10:29,760 Speaker 2: logistical confusion, and you don't necessarily have someone who is 209 00:10:29,800 --> 00:10:31,839 Speaker 2: looking out for you in the same way as if 210 00:10:31,880 --> 00:10:35,080 Speaker 2: you were only working with one agent. And also one 211 00:10:35,240 --> 00:10:39,360 Speaker 2: agent will likely be able to find apartment options for 212 00:10:39,400 --> 00:10:42,640 Speaker 2: you that aren't necessarily listed online, So there's a plothora 213 00:10:42,720 --> 00:10:47,920 Speaker 2: of options through internal connections or private listings that managements 214 00:10:47,960 --> 00:10:50,600 Speaker 2: will send out to brokers that'll open up a world 215 00:10:50,600 --> 00:10:55,439 Speaker 2: of possibilities of additional apartments that aren't listed online. 216 00:10:59,480 --> 00:11:02,240 Speaker 1: Mark is right, there are definitely advantages to working with 217 00:11:02,320 --> 00:11:05,960 Speaker 1: one broker. However, if you're organized, you can't keep track 218 00:11:06,000 --> 00:11:08,280 Speaker 1: of it all yourself. It does take a bit of juggling, 219 00:11:08,440 --> 00:11:10,959 Speaker 1: and you may even want to create a separate email 220 00:11:10,960 --> 00:11:14,120 Speaker 1: account just for your apartment search. But that, along with 221 00:11:14,240 --> 00:11:19,079 Speaker 1: a really well organized spreadsheet of appointments and aged contact info, 222 00:11:19,320 --> 00:11:21,480 Speaker 1: can be a great way of keeping track of what 223 00:11:21,520 --> 00:11:24,160 Speaker 1: you've seen and who you've seen it with. It may 224 00:11:24,200 --> 00:11:26,600 Speaker 1: help you see a larger number of apartments because you're 225 00:11:26,640 --> 00:11:28,920 Speaker 1: seeing places that have been listed with a number of 226 00:11:28,960 --> 00:11:35,800 Speaker 1: different agencies. So I want to talk a little bit 227 00:11:35,840 --> 00:11:39,880 Speaker 1: about guaranteurs. Can you explain a little bit what it 228 00:11:39,960 --> 00:11:42,360 Speaker 1: means when you see an apartment and there's a guaranteur 229 00:11:42,440 --> 00:11:43,440 Speaker 1: accepted situation. 230 00:11:44,240 --> 00:11:49,520 Speaker 2: Absolutely, having a guaranteur is a very beneficial thing. What 231 00:11:49,600 --> 00:11:53,080 Speaker 2: this means is when one is applying for an apartment, 232 00:11:53,440 --> 00:11:57,080 Speaker 2: they need to qualify in the landlord's eyes in order 233 00:11:57,120 --> 00:11:59,520 Speaker 2: to be approved for it. Here in New York, what 234 00:11:59,559 --> 00:12:02,640 Speaker 2: that typical means is that your annual income has to 235 00:12:02,679 --> 00:12:06,559 Speaker 2: be forty times the rent, like the monthly rent, So 236 00:12:06,679 --> 00:12:09,600 Speaker 2: say the apartment is two thousand dollars a month, that 237 00:12:09,640 --> 00:12:12,600 Speaker 2: means your income has to be eighty thousand dollars. In 238 00:12:12,600 --> 00:12:15,640 Speaker 2: addition to that, you need a good credit score, and 239 00:12:16,160 --> 00:12:19,280 Speaker 2: usually a good credit score means somewhere above six 't eighty. 240 00:12:19,960 --> 00:12:23,200 Speaker 2: If you don't meet those qualifications, which so many people 241 00:12:23,280 --> 00:12:26,520 Speaker 2: do not meet those, especially when they're very young, income 242 00:12:26,600 --> 00:12:30,720 Speaker 2: is a guaranteur. A guaranteur is typically someone who is 243 00:12:30,760 --> 00:12:33,880 Speaker 2: like a parent or a friend, someone who is well 244 00:12:34,000 --> 00:12:39,240 Speaker 2: established in their finances, who can basically stand up for 245 00:12:39,280 --> 00:12:43,520 Speaker 2: you in the apartment search in terms of qualifications. And 246 00:12:43,559 --> 00:12:46,600 Speaker 2: what I mean by that is the management company when 247 00:12:46,640 --> 00:12:50,920 Speaker 2: they're looking at who is going to be responsible for 248 00:12:51,040 --> 00:12:53,320 Speaker 2: the rent or any kind of payment on the apartment, 249 00:12:53,360 --> 00:12:55,640 Speaker 2: they're not looking at you, They're looking at the guaranteur. 250 00:12:56,240 --> 00:12:58,840 Speaker 2: So a guaranteur typically needs, at least in New York, 251 00:12:58,880 --> 00:13:00,760 Speaker 2: they need to make eighty times the rent, and they 252 00:13:00,760 --> 00:13:03,080 Speaker 2: also need to have a good credit score. But there's 253 00:13:03,120 --> 00:13:05,160 Speaker 2: lots of other considerations that go into that. 254 00:13:05,920 --> 00:13:08,920 Speaker 1: So what happens if we don't meet that forty times 255 00:13:08,960 --> 00:13:13,000 Speaker 1: the income requirement and we don't have a guaranteur option? 256 00:13:13,120 --> 00:13:16,640 Speaker 1: Either are we just doomed or are there other options 257 00:13:16,679 --> 00:13:19,319 Speaker 1: we can still explore to get the apartment we want. 258 00:13:19,640 --> 00:13:25,079 Speaker 2: You'll see the names Rhino or the guaranteurs or insurant. 259 00:13:25,440 --> 00:13:30,040 Speaker 2: These are what we call third party guaranteur companies. These companies, 260 00:13:30,160 --> 00:13:33,960 Speaker 2: for a fee, will become your guaranteur, and these can 261 00:13:34,040 --> 00:13:37,240 Speaker 2: be a really great way to go about securing an apartment. 262 00:13:37,679 --> 00:13:40,560 Speaker 2: They're typically low cost. What you do is you go 263 00:13:40,640 --> 00:13:44,000 Speaker 2: onto their website, you put in your information, you put 264 00:13:44,000 --> 00:13:46,640 Speaker 2: in the apartment information, and they'll get back to you 265 00:13:46,679 --> 00:13:49,320 Speaker 2: with a quote about how much it'll cost to use 266 00:13:49,400 --> 00:13:53,200 Speaker 2: their service. So it's a one time fee, others it's 267 00:13:53,240 --> 00:13:58,120 Speaker 2: a monthly fee, and typically using a guaranteur service also 268 00:13:58,240 --> 00:14:01,760 Speaker 2: replaces the security deposit, which means you pay less money 269 00:14:01,800 --> 00:14:06,679 Speaker 2: upfront to the management company. So when you bring in 270 00:14:06,720 --> 00:14:10,360 Speaker 2: one of these services, they become your guaranteur for the 271 00:14:10,720 --> 00:14:13,280 Speaker 2: duration of the lease and you can get into the 272 00:14:13,320 --> 00:14:17,920 Speaker 2: apartment no problem. A management company will accept you pretty 273 00:14:17,960 --> 00:14:21,040 Speaker 2: much no matter what. The little asterisk on this is 274 00:14:21,080 --> 00:14:24,120 Speaker 2: that not all management companies work with all third party 275 00:14:24,120 --> 00:14:28,160 Speaker 2: guaranteur companies. So one thing that your broker can certainly 276 00:14:28,160 --> 00:14:31,760 Speaker 2: help with in advance is telling you which apartments except 277 00:14:31,840 --> 00:14:35,640 Speaker 2: which companies, if any, and so they can really help 278 00:14:35,760 --> 00:14:38,720 Speaker 2: narrow your search based off of what companies you may 279 00:14:38,800 --> 00:14:42,160 Speaker 2: want to use. If that's the direction you want to go. 280 00:14:45,600 --> 00:14:48,240 Speaker 1: So when someone agrees to be your guaranteur, they're essentially 281 00:14:48,240 --> 00:14:51,080 Speaker 1: telling your landlord, Hey, if they don't pay the rent, 282 00:14:51,200 --> 00:14:52,920 Speaker 1: you can come to meet and I will make sure 283 00:14:52,920 --> 00:14:54,960 Speaker 1: it's paid. And here's the proof that I have the 284 00:14:55,000 --> 00:14:58,320 Speaker 1: money to pay it. But not everyone has someone who 285 00:14:58,400 --> 00:15:00,800 Speaker 1: can do this for them and pro that you make 286 00:15:00,960 --> 00:15:03,880 Speaker 1: forty times the monthly rent is a lot harder than 287 00:15:03,880 --> 00:15:07,160 Speaker 1: it sounds sometimes, so as Mark mentioned, there are these 288 00:15:07,200 --> 00:15:10,720 Speaker 1: third party guarant tour companies that you can hire. They 289 00:15:10,760 --> 00:15:12,960 Speaker 1: won't need to see that you make forty times the rent. 290 00:15:13,160 --> 00:15:16,120 Speaker 1: But these companies don't do this for free, and they 291 00:15:16,200 --> 00:15:19,080 Speaker 1: often have a fee of somewhere between sixty five to 292 00:15:19,120 --> 00:15:25,880 Speaker 1: one hundred and ten percent of one month's rent. Aside 293 00:15:25,880 --> 00:15:28,080 Speaker 1: from costs, what are the questions we should be asking 294 00:15:28,080 --> 00:15:31,400 Speaker 1: a broker upfront before we even see an apartment that 295 00:15:31,440 --> 00:15:32,800 Speaker 1: we might not think about. 296 00:15:33,040 --> 00:15:37,440 Speaker 2: Yeah, in terms of costs, I would ask about utilities. 297 00:15:37,560 --> 00:15:41,440 Speaker 2: Confirm what utilities are provided and which ones aren't. Here 298 00:15:41,440 --> 00:15:44,200 Speaker 2: in New York heat and water they have to be 299 00:15:44,280 --> 00:15:47,840 Speaker 2: included legally, and additionally, on top of that, usually the 300 00:15:47,880 --> 00:15:51,800 Speaker 2: tenant is responsible for electricity, cooking, gas, if there is 301 00:15:51,880 --> 00:15:54,720 Speaker 2: cooking gas, and then also the internet bill would be 302 00:15:54,760 --> 00:15:59,200 Speaker 2: the three things that the tenant would be responsible for. Often, large, 303 00:16:00,120 --> 00:16:03,440 Speaker 2: more modern luxury buildings will have things called an amenity fee. 304 00:16:03,800 --> 00:16:06,040 Speaker 2: So if there's like a nice gym in the building, 305 00:16:06,320 --> 00:16:09,840 Speaker 2: or a roof deck or dorman, or you know, any 306 00:16:09,960 --> 00:16:13,600 Speaker 2: kind of service or amenity that's provided to the tenants, 307 00:16:13,960 --> 00:16:18,120 Speaker 2: sometimes the building will require a monthly amenity fee for 308 00:16:18,240 --> 00:16:21,520 Speaker 2: the tenant to pay for those services, So you'll want 309 00:16:21,520 --> 00:16:24,960 Speaker 2: to check about that. Maybe you'll want to ask about 310 00:16:25,000 --> 00:16:27,800 Speaker 2: specific amenities, like if there's a gym in the building, 311 00:16:28,120 --> 00:16:31,360 Speaker 2: is there a cost for that? Is there storage somewhere? 312 00:16:31,720 --> 00:16:34,600 Speaker 2: Is there a cost for the storage? You can maybe 313 00:16:34,680 --> 00:16:37,920 Speaker 2: ask what the neighborhood is like, or what kinds of 314 00:16:38,000 --> 00:16:40,120 Speaker 2: like bars and restaurants are in the area. If you 315 00:16:40,160 --> 00:16:42,880 Speaker 2: care about that kind of thing, they can help guide 316 00:16:42,920 --> 00:16:44,120 Speaker 2: you on that front for sure. 317 00:16:44,800 --> 00:16:47,120 Speaker 1: Yeah, excellent. You know, I think there are a lot 318 00:16:47,120 --> 00:16:48,880 Speaker 1: of things that we want to look at once we're 319 00:16:48,960 --> 00:16:52,800 Speaker 1: actually at the apartment. Obviously, we walk around, we see 320 00:16:52,800 --> 00:16:54,600 Speaker 1: the space, we get a sense of how big it is, 321 00:16:55,360 --> 00:16:57,840 Speaker 1: but what are some of the other things that we 322 00:16:57,880 --> 00:16:58,960 Speaker 1: should be double checking. 323 00:17:00,040 --> 00:17:05,879 Speaker 2: Advocate for people being as aware of the physical space 324 00:17:05,920 --> 00:17:08,879 Speaker 2: of the apartment as possible, which means like looking at 325 00:17:08,920 --> 00:17:12,080 Speaker 2: the walls, looking at the ceiling, taking note of any 326 00:17:12,240 --> 00:17:15,320 Speaker 2: like cracks or damages that may or may not be there. 327 00:17:15,640 --> 00:17:18,000 Speaker 2: Checking the water pressure is always a fun one, and 328 00:17:18,080 --> 00:17:20,240 Speaker 2: always seeing how long it takes for hot water to 329 00:17:20,359 --> 00:17:23,480 Speaker 2: start is a good one. In terms of water pressure, 330 00:17:23,560 --> 00:17:25,800 Speaker 2: you can always change out the faucet head to get 331 00:17:25,800 --> 00:17:28,240 Speaker 2: a different water pressure, but you know, that's a great 332 00:17:28,240 --> 00:17:31,040 Speaker 2: thing to check. I mean, you can check cabinets and 333 00:17:31,080 --> 00:17:33,480 Speaker 2: like see if any like hinges are off. But in theory, 334 00:17:33,520 --> 00:17:36,560 Speaker 2: the building should be able to fix any smaller issue 335 00:17:36,640 --> 00:17:38,600 Speaker 2: like that, and you really want to be in a 336 00:17:38,600 --> 00:17:41,640 Speaker 2: building where they will be able to do something like that. 337 00:17:42,000 --> 00:17:44,280 Speaker 2: One of the things I think is most important about 338 00:17:44,359 --> 00:17:46,879 Speaker 2: an apartment search that a lot of people don't think 339 00:17:46,920 --> 00:17:49,919 Speaker 2: about is not the apartment itself, but the building. I 340 00:17:49,920 --> 00:17:52,120 Speaker 2: think you really want to be in a good building, 341 00:17:52,560 --> 00:17:55,560 Speaker 2: and so you want to take note of the condition 342 00:17:56,000 --> 00:17:59,560 Speaker 2: of the hallways and the entry way. You want to 343 00:17:59,600 --> 00:18:02,199 Speaker 2: take note if there's any staff, if there's like a doorman, 344 00:18:02,600 --> 00:18:05,080 Speaker 2: are they friendly, do you get along with them? Do 345 00:18:05,240 --> 00:18:07,919 Speaker 2: the amenities seem to look like the things that you want. 346 00:18:08,320 --> 00:18:10,480 Speaker 2: If you have a chance, you can talk to a 347 00:18:10,560 --> 00:18:13,159 Speaker 2: current resident of the building, then ask them how it is. 348 00:18:13,720 --> 00:18:16,520 Speaker 2: Take note of anything that might not be working properly, 349 00:18:16,960 --> 00:18:19,840 Speaker 2: and think about that as the way in which the 350 00:18:19,920 --> 00:18:23,159 Speaker 2: management may interact with you throughout your time as a 351 00:18:23,200 --> 00:18:26,760 Speaker 2: tenant in the building. Because if there's paint peeling on 352 00:18:26,800 --> 00:18:29,560 Speaker 2: the wallpaper in the hallway, maybe they're not going to 353 00:18:29,600 --> 00:18:33,080 Speaker 2: come in and fix the cabinet in your apartment that 354 00:18:33,320 --> 00:18:37,119 Speaker 2: has come loose. So I really think that's very critical 355 00:18:37,320 --> 00:18:38,000 Speaker 2: to think about. 356 00:18:40,080 --> 00:18:42,080 Speaker 1: We'll be right back with more grown up stuff how 357 00:18:42,119 --> 00:18:50,479 Speaker 1: to adult after a quick break, and we're back with 358 00:18:50,600 --> 00:18:56,800 Speaker 1: more grown up stuff how to adult. So once we 359 00:18:56,960 --> 00:19:00,000 Speaker 1: actually get to look at the lease itself, we'll sometimes 360 00:19:00,080 --> 00:19:04,879 Speaker 1: see terms like legal rent and preferential rent. Could you 361 00:19:05,480 --> 00:19:08,800 Speaker 1: explain some of these terms and how they relate to 362 00:19:08,840 --> 00:19:11,960 Speaker 1: what we're actually paying and are there other things that 363 00:19:11,960 --> 00:19:15,760 Speaker 1: we should be on the lookout for before we sign sure? 364 00:19:15,880 --> 00:19:19,320 Speaker 2: Absolutely, yeah, Lisa. There's a lot of what I like 365 00:19:19,359 --> 00:19:23,080 Speaker 2: to call legalies in these giant documents, and so I 366 00:19:23,160 --> 00:19:26,040 Speaker 2: understand the frustration of not wanting to read through them, 367 00:19:26,240 --> 00:19:30,080 Speaker 2: but I advocate for anyone to completely read their lease 368 00:19:30,119 --> 00:19:33,200 Speaker 2: before they sign anything, because you never know what might 369 00:19:33,240 --> 00:19:35,439 Speaker 2: be in there, the big things that you want to 370 00:19:35,440 --> 00:19:38,560 Speaker 2: be looking out for. You want to confirm the rent amount, 371 00:19:38,840 --> 00:19:41,439 Speaker 2: and as you mentioned, sometimes the rent amount here in 372 00:19:41,480 --> 00:19:44,199 Speaker 2: New York can look different when there's something called a 373 00:19:44,240 --> 00:19:49,200 Speaker 2: preferential rent. A preferential rent comes into play when the 374 00:19:49,240 --> 00:19:53,320 Speaker 2: apartment is a certain legal rent. So in a rent 375 00:19:53,320 --> 00:19:58,240 Speaker 2: stabilized apartment, the city will have actually determined an amount 376 00:19:58,600 --> 00:20:01,879 Speaker 2: that the rent of the apartment will be. Say you know, 377 00:20:01,920 --> 00:20:04,439 Speaker 2: you have a one bedroom on the Upper West Side 378 00:20:04,600 --> 00:20:08,480 Speaker 2: and it's rent stabilized, and the city has said, this 379 00:20:08,800 --> 00:20:11,560 Speaker 2: is worth twenty nine thirty seven and eighteen cents. That 380 00:20:11,720 --> 00:20:15,080 Speaker 2: is what we've calculated and determined. And the landlord goes, well, 381 00:20:15,320 --> 00:20:17,080 Speaker 2: that's higher than what I want to rent it for. 382 00:20:17,440 --> 00:20:20,520 Speaker 2: And so in order to legally go below that, what 383 00:20:20,560 --> 00:20:23,000 Speaker 2: they do is they have what's called a preferential rent, 384 00:20:23,040 --> 00:20:26,840 Speaker 2: which is the amount that they are offering you. So 385 00:20:27,080 --> 00:20:30,280 Speaker 2: even if the city says the legal amount is that high, 386 00:20:30,359 --> 00:20:34,400 Speaker 2: the landlord can say, my preferential rent is twenty five hundred. 387 00:20:34,760 --> 00:20:38,320 Speaker 2: That's what i'll offer to you, and they'll outline the terms. 388 00:20:38,440 --> 00:20:41,720 Speaker 2: And this always comes in a rider that is attached 389 00:20:41,760 --> 00:20:46,560 Speaker 2: to the lease. Riders will always overrule anything that is 390 00:20:46,600 --> 00:20:49,560 Speaker 2: said in the lease, so often what you really want 391 00:20:49,600 --> 00:20:52,120 Speaker 2: to be paying attention to when reading a lease are 392 00:20:52,160 --> 00:20:54,520 Speaker 2: the writers that come at the very end, because that's 393 00:20:54,560 --> 00:20:57,919 Speaker 2: where it'll get specific about how the landlord wants to 394 00:20:58,359 --> 00:20:59,040 Speaker 2: run the lease. 395 00:21:01,400 --> 00:21:04,040 Speaker 1: Another term we may come across when reading a lease 396 00:21:04,160 --> 00:21:07,240 Speaker 1: is rent stabilized or rent controlled. We hear this term 397 00:21:07,280 --> 00:21:09,119 Speaker 1: a lot in New York, but these days it seems 398 00:21:09,119 --> 00:21:11,560 Speaker 1: even harder to find an apartment that actually falls into 399 00:21:11,600 --> 00:21:14,440 Speaker 1: either of these categories. But New York isn't the only 400 00:21:14,480 --> 00:21:18,040 Speaker 1: city with rent stabilized or rent control housing. Earlier this year, 401 00:21:18,240 --> 00:21:21,439 Speaker 1: Boston City Council approved the Home Ral Petition, which is 402 00:21:21,520 --> 00:21:24,720 Speaker 1: now with the Massachusetts legislature. If it becomes law, the 403 00:21:24,760 --> 00:21:27,560 Speaker 1: city of Boston will be authorized to implement rent stabilization 404 00:21:27,600 --> 00:21:30,840 Speaker 1: to units. And in Portland, Maine, residents just voted against 405 00:21:30,920 --> 00:21:33,679 Speaker 1: changes to a rent control law. This means that the 406 00:21:33,680 --> 00:21:37,040 Speaker 1: city will maintain its current guidelines, which only allow landlords 407 00:21:37,080 --> 00:21:39,320 Speaker 1: to raise the rent by five percent when a new 408 00:21:39,359 --> 00:21:44,560 Speaker 1: tenant moves in. These are terms that are thrown around 409 00:21:44,600 --> 00:21:49,000 Speaker 1: a lot, rent stabilized versus rent controlled. What are the 410 00:21:49,000 --> 00:21:50,320 Speaker 1: differences between these two. 411 00:21:51,000 --> 00:21:53,560 Speaker 2: Well, I'll go a little bigger and I'll say here, 412 00:21:53,560 --> 00:21:56,280 Speaker 2: in New York there are three types of apartments. The 413 00:21:56,320 --> 00:22:00,440 Speaker 2: most common is what's called a market rate apartment. This 414 00:22:00,600 --> 00:22:04,240 Speaker 2: means that it's not regulated by the city. The landlord 415 00:22:04,560 --> 00:22:07,760 Speaker 2: is basically allowed to do whatever terms they want, set 416 00:22:07,760 --> 00:22:11,080 Speaker 2: whatever prices they want. They can increase the rent however 417 00:22:11,160 --> 00:22:15,240 Speaker 2: much they want. This is your standard apartment. The next 418 00:22:15,280 --> 00:22:18,560 Speaker 2: tier of apartments is what's called rent stabilized, which is 419 00:22:18,720 --> 00:22:22,240 Speaker 2: a certain list of apartments. It's about two million units 420 00:22:22,240 --> 00:22:26,480 Speaker 2: in the city that New York City has regulations over. 421 00:22:26,920 --> 00:22:32,040 Speaker 2: They're allowed to control these apartments, and through many crazy determinations, 422 00:22:32,080 --> 00:22:35,720 Speaker 2: they have decided which ones are rent stabilized and which 423 00:22:35,760 --> 00:22:39,400 Speaker 2: ones are not, and what the prices are in all 424 00:22:39,400 --> 00:22:42,120 Speaker 2: of this, but if you find an apartment that says 425 00:22:42,119 --> 00:22:44,959 Speaker 2: that it's rent stabilized, what that means is that the 426 00:22:44,960 --> 00:22:47,600 Speaker 2: city is protecting you from the landlord in a lot 427 00:22:47,640 --> 00:22:51,520 Speaker 2: of ways, and they are regulating the landlord in terms 428 00:22:51,520 --> 00:22:54,600 Speaker 2: of what they are allowed to do. The biggest benefit 429 00:22:54,840 --> 00:22:57,440 Speaker 2: is that it caps the amount that a landlord is 430 00:22:57,480 --> 00:23:00,960 Speaker 2: allowed to increase the rent from least term to the 431 00:23:01,000 --> 00:23:04,320 Speaker 2: next least term. It's not a set number like in 432 00:23:04,359 --> 00:23:06,880 Speaker 2: the history. It's not just like it's two percent every 433 00:23:06,880 --> 00:23:09,200 Speaker 2: single year. What New York City does is that there's 434 00:23:09,200 --> 00:23:13,040 Speaker 2: a rent regulation Guideline Board. I believe that's the term 435 00:23:13,440 --> 00:23:16,720 Speaker 2: that convenes, and they determine on a year to year 436 00:23:16,800 --> 00:23:20,320 Speaker 2: basis what that percentage is going to be. So, for example, 437 00:23:20,440 --> 00:23:24,119 Speaker 2: during the lockdown of twenty twenty, they determined that it 438 00:23:24,119 --> 00:23:27,080 Speaker 2: would be zero percent. A landlord would be allowed to 439 00:23:27,160 --> 00:23:30,480 Speaker 2: raise the rent zero going from one least term to 440 00:23:30,520 --> 00:23:34,520 Speaker 2: the next. The following year, I believe they determined it. 441 00:23:34,520 --> 00:23:36,480 Speaker 2: It was a complicated thing. It was like it was 442 00:23:36,520 --> 00:23:39,200 Speaker 2: somewhere around two point five percent, but it split between 443 00:23:39,240 --> 00:23:42,480 Speaker 2: the first six months in the last six months. But anyways, 444 00:23:42,720 --> 00:23:45,080 Speaker 2: rent stabilized means that you have a lot of protections 445 00:23:45,080 --> 00:23:47,800 Speaker 2: from the city. In addition to the benefit of the 446 00:23:47,840 --> 00:23:51,440 Speaker 2: rent being able to only increase by a certain small percentage, 447 00:23:51,760 --> 00:23:54,600 Speaker 2: you're allowed to legally sublet. You have a lot more 448 00:23:54,640 --> 00:23:57,960 Speaker 2: protections when it comes to what the landlord is allowed 449 00:23:58,000 --> 00:24:00,080 Speaker 2: to do to the building and how they're allowed to 450 00:24:00,119 --> 00:24:02,280 Speaker 2: treat you, and if you ever need to go to court, 451 00:24:02,440 --> 00:24:06,240 Speaker 2: God forbid. You got a lot backing you, which is 452 00:24:06,359 --> 00:24:09,480 Speaker 2: very very helpful. You brought up the third, which is 453 00:24:09,520 --> 00:24:14,199 Speaker 2: rent controlled. Rent controlled is a really crazy situation. If 454 00:24:14,240 --> 00:24:17,280 Speaker 2: an apartment is rent controlled, it means that the same 455 00:24:17,680 --> 00:24:21,359 Speaker 2: tenant or their descendants in some way have been living 456 00:24:21,520 --> 00:24:24,359 Speaker 2: in that apartment since before nineteen seventy eight. 457 00:24:24,640 --> 00:24:25,000 Speaker 1: Wow. 458 00:24:25,160 --> 00:24:29,240 Speaker 2: Yeah, so prior to nineteen seventy eight there were different 459 00:24:29,440 --> 00:24:32,680 Speaker 2: rent guidelines. So for example, I knew someone who had 460 00:24:32,720 --> 00:24:36,119 Speaker 2: a grandmother who was in a rent control department. She 461 00:24:36,280 --> 00:24:39,720 Speaker 2: moved into the apartment in the nineteen fifties and when 462 00:24:39,760 --> 00:24:42,720 Speaker 2: she passed away, the rent was about five hundred dollars 463 00:24:43,200 --> 00:24:46,800 Speaker 2: and market rate was about fifteen thousand dollars. To give 464 00:24:46,840 --> 00:24:48,600 Speaker 2: an example of what it really means to be in 465 00:24:48,640 --> 00:24:53,160 Speaker 2: a rent control department, it's a very extreme difference. Likely 466 00:24:53,240 --> 00:24:56,000 Speaker 2: one is never going to find a rent control department 467 00:24:56,119 --> 00:24:59,400 Speaker 2: on the market because the tenants aren't going to move 468 00:24:59,440 --> 00:25:02,200 Speaker 2: out and not gonna list it. And if the landlord 469 00:25:02,400 --> 00:25:04,840 Speaker 2: gets a rent control department, they're going to like do 470 00:25:04,960 --> 00:25:07,480 Speaker 2: the legal changes that they're allowed to do in order 471 00:25:07,520 --> 00:25:10,800 Speaker 2: to bring it back to market rate. So never expect 472 00:25:10,800 --> 00:25:13,560 Speaker 2: to find rent controlled. If someone says that they're looking 473 00:25:13,560 --> 00:25:16,760 Speaker 2: for rent controlled they usually mean they're looking for rent stabilized. 474 00:25:20,000 --> 00:25:22,520 Speaker 1: As the cost of living prices increase in a number 475 00:25:22,560 --> 00:25:24,760 Speaker 1: of cities across the country, there have been a lot 476 00:25:24,800 --> 00:25:28,680 Speaker 1: of conversations around rent stabilization and rent control, and many 477 00:25:28,720 --> 00:25:31,600 Speaker 1: residents are fighting for more of those options as a 478 00:25:31,680 --> 00:25:35,800 Speaker 1: means of keeping housing more affordable. But as Mark points out, 479 00:25:35,920 --> 00:25:39,080 Speaker 1: these are two different things. According to an article in 480 00:25:39,160 --> 00:25:42,280 Speaker 1: Forbes written by the CEO of rent Tech, direct rent 481 00:25:42,280 --> 00:25:44,920 Speaker 1: control means the local government dictates how much an owner 482 00:25:44,920 --> 00:25:48,480 Speaker 1: can charge and rent. Generally, this rate is locked in 483 00:25:48,560 --> 00:25:51,560 Speaker 1: at this amount thanks to rent controlled. That's also how 484 00:25:51,600 --> 00:25:54,600 Speaker 1: Monica and Rachel from Friends afforded such a spacious two 485 00:25:54,600 --> 00:25:57,680 Speaker 1: bedroom in the West Village. Monica had inherited the least 486 00:25:57,720 --> 00:26:00,600 Speaker 1: for the rent control department after her grandmother had passed away. 487 00:26:01,320 --> 00:26:04,960 Speaker 1: Rent stabilized, on the other hand, provides owners more flexibility 488 00:26:04,960 --> 00:26:08,920 Speaker 1: on rent increases, but as Mark states, a designated committee 489 00:26:08,960 --> 00:26:12,439 Speaker 1: within the local government determines how much landlords can increase 490 00:26:12,480 --> 00:26:14,680 Speaker 1: the rent from year to year or lease to lease. 491 00:26:15,240 --> 00:26:17,760 Speaker 1: But we now know that there's a limited number of 492 00:26:17,760 --> 00:26:21,240 Speaker 1: both rent controlled and rent stabilized apartments, and there are 493 00:26:21,280 --> 00:26:24,240 Speaker 1: only a handful of states that actually provide rent control departments, 494 00:26:24,280 --> 00:26:27,480 Speaker 1: and there are some that outlaw rent control altogether. So 495 00:26:27,880 --> 00:26:30,040 Speaker 1: if this isn't an option to us, what are some 496 00:26:30,200 --> 00:26:32,520 Speaker 1: of the other ways we can negotiate the best deal 497 00:26:32,640 --> 00:26:33,400 Speaker 1: for an apartment. 498 00:26:37,400 --> 00:26:39,439 Speaker 2: The first thing one should do if they're trying to 499 00:26:39,520 --> 00:26:43,720 Speaker 2: negotiate is trust their broker. Let their broker do all 500 00:26:43,920 --> 00:26:47,240 Speaker 2: the negotiating for them, and trust that the broker knows 501 00:26:47,280 --> 00:26:50,400 Speaker 2: what's an appropriate negotiation and what's not, because I can 502 00:26:50,480 --> 00:26:53,840 Speaker 2: almost promise you that they have a better relationship connection 503 00:26:54,119 --> 00:26:57,119 Speaker 2: and understanding of what the landlord will allow and won't 504 00:26:57,160 --> 00:27:00,560 Speaker 2: allow in terms of bargaining on any game and lease. 505 00:27:01,160 --> 00:27:03,680 Speaker 2: The second thing one should be aware of is what 506 00:27:03,720 --> 00:27:06,560 Speaker 2: the current state of the market is. They should know 507 00:27:06,760 --> 00:27:09,800 Speaker 2: whether it is a buyer's market or a seller's market. 508 00:27:10,119 --> 00:27:13,119 Speaker 2: And the more that it's a buyer's market, as in 509 00:27:13,720 --> 00:27:17,399 Speaker 2: there's a lot of availability, prices are low, you have 510 00:27:17,480 --> 00:27:20,280 Speaker 2: a lot of options. If that's the state of the market, 511 00:27:20,440 --> 00:27:23,760 Speaker 2: the more likely a landlord is willing to negotiate with you. So, 512 00:27:23,880 --> 00:27:27,320 Speaker 2: for example, in twenty twenty, when the world was in 513 00:27:27,359 --> 00:27:30,240 Speaker 2: lockdown and there were you know, the vacancy rate was 514 00:27:30,280 --> 00:27:33,479 Speaker 2: about twenty percent in New York City, there was a 515 00:27:33,520 --> 00:27:36,119 Speaker 2: ton of wiggle room for bargaining. I was able to 516 00:27:36,119 --> 00:27:38,760 Speaker 2: get an extra free month out of my lease through bargaining, 517 00:27:39,240 --> 00:27:42,560 Speaker 2: just because management companies were so desperate to get people 518 00:27:42,600 --> 00:27:45,359 Speaker 2: in they'd agree to pretty much anything. But come this 519 00:27:45,440 --> 00:27:48,800 Speaker 2: past summer, for example, it had flipped completely. It was 520 00:27:48,920 --> 00:27:51,840 Speaker 2: no longer the buyer's market. It was one hundred percent 521 00:27:51,880 --> 00:27:55,280 Speaker 2: the seller's market. The management companies they had so little 522 00:27:55,320 --> 00:27:58,320 Speaker 2: apartments that they had literally lines around the block of 523 00:27:58,359 --> 00:28:01,080 Speaker 2: people who were trying to rent an apartment. And in 524 00:28:01,119 --> 00:28:03,720 Speaker 2: a condition like that, they're not going to negotiate on 525 00:28:04,000 --> 00:28:07,480 Speaker 2: anything because they will just go to the next person 526 00:28:07,520 --> 00:28:10,400 Speaker 2: who is willing to meet them at whatever their demands are. 527 00:28:10,880 --> 00:28:13,280 Speaker 2: So that all is to say, the state of the 528 00:28:13,320 --> 00:28:16,879 Speaker 2: market will determine a lot about how much you'll be 529 00:28:16,880 --> 00:28:21,000 Speaker 2: able to negotiate. But in terms of generally what's permitted, 530 00:28:21,359 --> 00:28:25,199 Speaker 2: you could negotiate maybe a reduction in amenity fees, like 531 00:28:25,400 --> 00:28:28,639 Speaker 2: maybe ask for like a discount for a certain amount 532 00:28:28,680 --> 00:28:31,240 Speaker 2: of months. You could say something like, I don't know 533 00:28:31,280 --> 00:28:33,119 Speaker 2: if I'm going to use these amenities, I'd love to 534 00:28:33,160 --> 00:28:35,240 Speaker 2: try them out. Is there any way I could just 535 00:28:35,280 --> 00:28:37,600 Speaker 2: get a couple months free. Maybe they'll say yes to that. 536 00:28:38,120 --> 00:28:41,840 Speaker 2: You could maybe try to negotiate the rent amount on 537 00:28:41,880 --> 00:28:45,120 Speaker 2: a lease. I would recommend dropping in increments of about 538 00:28:45,160 --> 00:28:48,440 Speaker 2: twenty five dollars and anything more than one hundred is 539 00:28:48,440 --> 00:28:52,320 Speaker 2: probably pretty extreme. You can also negotiate the terms. Say 540 00:28:52,360 --> 00:28:55,680 Speaker 2: the management company wants a twelve month term and you say, well, 541 00:28:55,760 --> 00:28:57,480 Speaker 2: that's not going to work for me. I'm going to 542 00:28:57,560 --> 00:29:00,160 Speaker 2: want this to end and you know two months after that, 543 00:29:00,240 --> 00:29:02,880 Speaker 2: I really want a fourteenth month lease. That's something that 544 00:29:02,920 --> 00:29:06,240 Speaker 2: you could also negotiate. You can negotiate the move dates, 545 00:29:06,640 --> 00:29:09,120 Speaker 2: and yeah, I would say those are the big things 546 00:29:09,160 --> 00:29:12,560 Speaker 2: that one is probably able to have some flexibility around. 547 00:29:13,360 --> 00:29:16,080 Speaker 1: Is there anything that we can leverage once we're renewing 548 00:29:16,080 --> 00:29:19,960 Speaker 1: a lease, either to have the increase in rent reduce 549 00:29:20,320 --> 00:29:22,760 Speaker 1: or anything else of those? You know, is it possible 550 00:29:22,760 --> 00:29:24,720 Speaker 1: to still get extra months like you had mentioned, when 551 00:29:24,720 --> 00:29:27,400 Speaker 1: you're already living in a place that's hard. 552 00:29:27,520 --> 00:29:30,080 Speaker 2: That's hard to get extra months In terms of what 553 00:29:30,120 --> 00:29:32,680 Speaker 2: you can leverage for a lease renewal. One thing I 554 00:29:32,720 --> 00:29:35,720 Speaker 2: really like to leverage is how good of a tenant 555 00:29:35,760 --> 00:29:38,400 Speaker 2: you've been. You can always come back and say, hey, 556 00:29:38,520 --> 00:29:41,440 Speaker 2: I haven't had any issues I've always paid my rent 557 00:29:41,520 --> 00:29:45,920 Speaker 2: on time. Whatever kind of good community service you can 558 00:29:46,040 --> 00:29:48,880 Speaker 2: pitch to the landlord is a good one because it's 559 00:29:48,880 --> 00:29:53,120 Speaker 2: always very welcoming. If you go beyond the good stuff 560 00:29:53,200 --> 00:29:57,320 Speaker 2: and you want to start getting into the more tussle territory, 561 00:29:57,760 --> 00:30:00,480 Speaker 2: you could keep track of the issues that the landlord had, 562 00:30:01,000 --> 00:30:03,360 Speaker 2: like if they didn't fix something that legally they were 563 00:30:03,400 --> 00:30:06,960 Speaker 2: allowed to fix, or if they weren't on time with 564 00:30:07,000 --> 00:30:10,000 Speaker 2: their lease renewal. Those are things that you could leverage 565 00:30:10,040 --> 00:30:12,880 Speaker 2: against them in order to get some kind of concession 566 00:30:13,600 --> 00:30:16,680 Speaker 2: and whatever the concession is. The best way to go 567 00:30:16,720 --> 00:30:20,160 Speaker 2: about it is usually asking for free things, not necessarily 568 00:30:20,200 --> 00:30:23,120 Speaker 2: like a reduction in your rent, but asking for one 569 00:30:23,200 --> 00:30:27,160 Speaker 2: month free. They're much more willing to negotiate on just 570 00:30:27,240 --> 00:30:29,840 Speaker 2: not charging you for a certain period of time than 571 00:30:29,880 --> 00:30:33,520 Speaker 2: they are to actually adjust anything on the lease or 572 00:30:33,800 --> 00:30:36,720 Speaker 2: lower the value of the property, because that hurts them 573 00:30:36,720 --> 00:30:38,040 Speaker 2: more long term. 574 00:30:38,320 --> 00:30:42,160 Speaker 1: When are they legally supposed to deliver a lease renewal 575 00:30:42,240 --> 00:30:43,680 Speaker 1: side of curiosity. 576 00:30:43,840 --> 00:30:46,800 Speaker 2: It gets very specific the amount of time that the 577 00:30:46,880 --> 00:30:49,720 Speaker 2: landlord needs to give you. On one hand, it depends 578 00:30:49,800 --> 00:30:52,520 Speaker 2: whether the apartment's rent stabilized or if it's market rate 579 00:30:53,040 --> 00:30:55,640 Speaker 2: if it's rent stabilized, they need to give you the 580 00:30:55,720 --> 00:30:58,880 Speaker 2: lease renewal at least thirty days in advance. If you've 581 00:30:58,920 --> 00:31:01,880 Speaker 2: been in an apartment for less than one year, If 582 00:31:01,880 --> 00:31:04,720 Speaker 2: you've been in it for one to two years, they 583 00:31:04,760 --> 00:31:07,320 Speaker 2: need to give it at least sixty days in advance. 584 00:31:07,680 --> 00:31:09,640 Speaker 2: And if you've been in an apartment for more than 585 00:31:09,680 --> 00:31:12,880 Speaker 2: two years, they need to give it at least ninety 586 00:31:12,960 --> 00:31:17,560 Speaker 2: days in advance. With a market rate apartment, legally they 587 00:31:17,640 --> 00:31:20,680 Speaker 2: only need to give you a lease renewal during those 588 00:31:21,120 --> 00:31:24,880 Speaker 2: date ranges if they intend to increase the rent by 589 00:31:25,000 --> 00:31:28,040 Speaker 2: at least five percent. If they intend to increase by 590 00:31:28,040 --> 00:31:31,240 Speaker 2: at least five percent, they need to follow those same guidelines. 591 00:31:31,600 --> 00:31:32,560 Speaker 2: Otherwise they do not. 592 00:31:33,520 --> 00:31:35,760 Speaker 1: Is there any other final parting wisdom that you want 593 00:31:35,800 --> 00:31:38,239 Speaker 1: to share for folks who are trying to find an 594 00:31:38,280 --> 00:31:39,880 Speaker 1: apartment to rent for the first time. 595 00:31:40,480 --> 00:31:44,720 Speaker 2: Yeah, In general, don't stress too much and find people 596 00:31:44,760 --> 00:31:47,600 Speaker 2: to help you out, whether that's a friend or a 597 00:31:47,640 --> 00:31:51,560 Speaker 2: family member, or using a broker who really understands the market. 598 00:31:52,120 --> 00:31:54,600 Speaker 2: It can be a lot of work, especially if you're 599 00:31:54,600 --> 00:31:57,720 Speaker 2: moving into a place that you've never moved before, and 600 00:31:58,080 --> 00:32:00,440 Speaker 2: the more support you can get, the better and I 601 00:32:00,440 --> 00:32:03,520 Speaker 2: think it'll just make your experience and the home that 602 00:32:03,560 --> 00:32:07,360 Speaker 2: you'll ultimately find a much better place. So make sure 603 00:32:07,360 --> 00:32:10,040 Speaker 2: to reach out through these kinds of connections as much 604 00:32:10,040 --> 00:32:12,720 Speaker 2: as you can. And like I said, if you're choosing 605 00:32:12,720 --> 00:32:15,640 Speaker 2: to work with a broker, I have always found that 606 00:32:15,840 --> 00:32:19,600 Speaker 2: when a person decides to just meet one broker who 607 00:32:20,320 --> 00:32:23,160 Speaker 2: they like a lot, and they create a really strong relationship, 608 00:32:23,480 --> 00:32:26,320 Speaker 2: it can lead to a really great apartment search. 609 00:32:27,080 --> 00:32:29,680 Speaker 1: Yeah, that's great advice. And Mark, what if people want 610 00:32:29,720 --> 00:32:32,040 Speaker 1: to use you as their broker, as their agent? How 611 00:32:32,080 --> 00:32:32,959 Speaker 1: can we find you? 612 00:32:33,600 --> 00:32:36,360 Speaker 2: Absolutely if you're looking for an apartment here in New York, 613 00:32:36,400 --> 00:32:38,920 Speaker 2: I'd love to connect with you. You can look at 614 00:32:38,920 --> 00:32:43,200 Speaker 2: my social on Instagram. I'm Mark dot r dot Metzger. 615 00:32:43,720 --> 00:32:46,200 Speaker 2: Or you can go to Corcoran dot com. You can 616 00:32:46,240 --> 00:32:48,760 Speaker 2: search for Mark Metzger as an agent and you can 617 00:32:48,760 --> 00:32:50,520 Speaker 2: find my contact information there. 618 00:32:51,080 --> 00:32:53,880 Speaker 1: And that's Mark with a K, not a C AN 619 00:32:54,040 --> 00:32:56,080 Speaker 1: M E t Z G E R, which we will 620 00:32:56,120 --> 00:32:58,480 Speaker 1: also include in the show notes as well. Mark, thank 621 00:32:58,520 --> 00:33:00,680 Speaker 1: you so much for your time. This is super helpful 622 00:33:00,720 --> 00:33:02,000 Speaker 1: and I really appreciate it. 623 00:33:02,280 --> 00:33:13,760 Speaker 2: Yeah, it's been a real pleasure, Molly. 624 00:33:09,800 --> 00:33:12,040 Speaker 1: So because so much of what we have talked about 625 00:33:12,040 --> 00:33:15,040 Speaker 1: today has been very New York specific. I highly recommend 626 00:33:15,160 --> 00:33:19,000 Speaker 1: checking out your city's Department of Housing website for details 627 00:33:19,000 --> 00:33:23,120 Speaker 1: about renter's rights and laws concerning rent increases and lease agreements. 628 00:33:23,280 --> 00:33:25,560 Speaker 1: You'll also be able to find links there to report 629 00:33:25,560 --> 00:33:29,040 Speaker 1: your landlord if they've neglected to maintain the property. But 630 00:33:29,120 --> 00:33:30,760 Speaker 1: here are a few other things I've learned from my 631 00:33:30,800 --> 00:33:34,040 Speaker 1: conversation with Mark. As you begin your search, websites like 632 00:33:34,200 --> 00:33:36,640 Speaker 1: Zillo and Redfinn can give you a good sense of 633 00:33:36,640 --> 00:33:40,440 Speaker 1: the market and how much your ideal apartment might cost. Brokers, 634 00:33:40,600 --> 00:33:43,800 Speaker 1: especially those who you're vibing with, can be an invaluable 635 00:33:43,840 --> 00:33:46,400 Speaker 1: resource and often show your apartments that have yet to 636 00:33:46,400 --> 00:33:49,240 Speaker 1: be listed online. But know that it is possible to 637 00:33:49,320 --> 00:33:52,320 Speaker 1: find an apartment on your own using online resources. Just 638 00:33:52,360 --> 00:33:55,040 Speaker 1: make sure you're keeping track of which units you've seen 639 00:33:55,080 --> 00:34:00,120 Speaker 1: and with whom. Thoroughly inspect apartments, check out that water pressure, 640 00:34:00,320 --> 00:34:02,680 Speaker 1: make a note of everything that needs repairing before you 641 00:34:02,720 --> 00:34:05,080 Speaker 1: move in. And while you might be able to afford 642 00:34:05,080 --> 00:34:08,719 Speaker 1: the rent, ask about additional costs like amenities and utilities, 643 00:34:08,760 --> 00:34:12,000 Speaker 1: and make sure they're in your budget before signing. Read 644 00:34:12,040 --> 00:34:15,920 Speaker 1: your lease carefully, especially the writers, because those will often 645 00:34:15,960 --> 00:34:20,520 Speaker 1: supersede the lease itself. That's all for today's episode. I 646 00:34:20,600 --> 00:34:23,120 Speaker 1: know I have learned a lot about my rights as 647 00:34:23,120 --> 00:34:25,600 Speaker 1: a renter and some really helpful tips for the next 648 00:34:25,600 --> 00:34:27,360 Speaker 1: time I have to search for an apartment, which I 649 00:34:27,400 --> 00:34:29,719 Speaker 1: hope is a far far time from now, because I 650 00:34:29,719 --> 00:34:33,400 Speaker 1: hate moving. I'm feeling more grown up with every episode. Honestly, 651 00:34:33,760 --> 00:34:36,400 Speaker 1: do I look more mature, Matt? Do I see more responsible? 652 00:34:36,640 --> 00:34:39,239 Speaker 3: Okay, Molly, you look younger than I've ever seen you, 653 00:34:39,760 --> 00:34:41,960 Speaker 3: but that you seem so much more? 654 00:34:41,960 --> 00:34:46,600 Speaker 1: But sure? Well, what is next on our tour of 655 00:34:46,680 --> 00:34:47,480 Speaker 1: grown up Stuff? 656 00:34:47,920 --> 00:34:52,520 Speaker 3: Next up is buying a car? Leasing versus renting, used 657 00:34:52,600 --> 00:34:55,920 Speaker 3: versus new? What the heck MSRP means? What are the 658 00:34:55,960 --> 00:34:57,280 Speaker 3: latest must have features? 659 00:34:57,360 --> 00:34:59,839 Speaker 1: Oh? Yeah, speaking, you must have features. I really hope 660 00:35:00,000 --> 00:35:04,400 Speaker 1: backup cameras now come standard. Let's just say I've had 661 00:35:04,440 --> 00:35:05,920 Speaker 1: a few incidences driving in. 662 00:35:05,960 --> 00:35:08,080 Speaker 3: Reverse for the sake of other drivers on the road, 663 00:35:08,120 --> 00:35:10,520 Speaker 3: So you're navigating? I hope they are, but we will 664 00:35:10,560 --> 00:35:12,719 Speaker 3: be sure to find out in two weeks on the 665 00:35:12,760 --> 00:35:14,919 Speaker 3: next episode of grown up Stuff? How do a don't? 666 00:35:15,200 --> 00:35:17,719 Speaker 1: And remember you might not be great in life, but 667 00:35:17,840 --> 00:35:22,600 Speaker 1: it never hurts to do your homework. This is a 668 00:35:22,640 --> 00:35:25,240 Speaker 1: production from Ruby Studios at iHeartMedia. 669 00:35:25,560 --> 00:35:27,680 Speaker 3: Our executive producers are Molly. 670 00:35:27,480 --> 00:35:31,040 Speaker 1: Sosha and Matt Stillo. This episode was engineered by Matt. 671 00:35:30,880 --> 00:35:34,680 Speaker 3: Stillo and written by Molly Soshia. Special thanks to the 672 00:35:34,719 --> 00:35:38,640 Speaker 3: Ruby team including Eden Fixel, Rachel Swan, Krasnov, Amber Smith, 673 00:35:38,719 --> 00:35:58,960 Speaker 3: Nikia Swinton, Sierra Kaiser, Sierra Spreen, and Andy Kelly.