Trying to rent a home in New York City<\/a> can be a hassle. You\u2019ll need to find a borough to live in, browse through the spaces available, make sure what you\u2019re signing is not a scam, and dread the looming rent surges in an almost-post-COVID<\/a> world.\u00a0Many looking to rent in NYC are probably familiar with a broker\u2019s fee<\/a>, which is a commission a real estate broker is paid to provide their services. These services include finding tenants to live at a place on behalf of a landlord or overseeing the closing. The fee that is charged can range from one month of the rent to 15% of the annual rent, which can become pretty hefty.\u00a0But we\u2019re not talking about legal fees that renters are required to pay. A term that probably doesn\u2019t come up much anymore is “key money.” So, what is key money?<\/p>\r\n\r\n\r\n\r\n\r\n\r\n
Key money is when a landlord<\/a> asks for extra money on top of what you are paying to secure an apartment. These transactions are usually a hush-hush deal between the landlord and the tenant. In some ways, it\u2019s like a deposit that a renter would have to put down to secure their unit. However, it can be considered a bribe and, therefore not legal. This practice is illegal because only licensed real estate brokers<\/a> can collect a commission for a rental. Landlords usually verbally demand key money, and it’s is hard to challenge without witnesses or evidence.\u00a0<\/p>\r\n\r\n\r\n\r\n
One of the bigger complaints people have about renting a property in NYC is bumping into scammers. Here are some tips on what to look out for before signing a lease.<\/p>\r\n\r\n\r\n\r\n
One of the top rules when apartment renting in NYC is that if it looks too good to be true, it most likely is. Instead of blindly getting into contact with a rental that looks and sounds amazing, look for details like an exact address. Go into all the details like cross referencing photos on Google Street View, verifying the price and amenities listed, and if there\u2019s an onsite leasing office, calling them immediately.\u00a0<\/p>\r\n\r\n\r\n\r\n
If you have found a great (legitimate) place, you will most likely have a lot of competition. Remember that crazy TikTok from last year showing a crazy long queue just to see one apartment? You might see that. In order to impress the landlord, you can arrive with a credit report and even a list of references and their contact information.<\/p>\r\n\r\n\r\n\r\n
This is the part where you might have to watch out for a key money bribe. Make sure you get a clear view of what you need to pay up-front. Note what is legal and illegal.\u00a0<\/p>\r\n\r\n\r\n\r\n
Take the time to read every clause on every page of your lease<\/a>. A lease isn\u2019t like the 200 page Terms and Conditions from Apple. A lease will contain all the details like what you are paying for, utilities that come out of your own pocket, deadline for rent each month, special building rules (includes guests, pets, etc.), what happens if you break the lease, how you can renew the lease, or if you can sublet your apartment.<\/p>\r\n\r\n\r\n\r\n