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NYC_2011
March 9th, 2009, 05:55 PM
My wife and I plan on moving to NYC in about 2-3 years, maybe sooner but nontheless here is my question:

Lets say we find a place anywhere in Manhattan for like $3,000 per month which is $36,000 per year on just rent alone.

Now I would definetely like to rent with my wife being the joint so we can combine our incomes since there is no way in hell I would qualify alone with a salary of about $55,000 per year is what I estimate I might be making by the time we move out there and she might be making $60,000 plus annually. I found this off another website:

"If you donít cut the mustard, a landlord may require a co-signer or guarantor. Some landlords require that a guarantor earn an annual salary of at least 80 Ė 100 times the monthly rent."

Does this mean they want my wife alone to make a minimum of $240,000 or us combined we need to make that much? Besides combined we probably wouldn't even make more than $110K annually by the time we move there so does this mean we will not qualify for any apartment rentals at all in NYC? I'm beginning to think it's going to be impossible to move there and get a decent 2 bedroom place in Manhattan and qualify under these strict income requirements.

Any comments would be helpful. Thanks everyone.

HoveringCheesecake
March 9th, 2009, 06:39 PM
I don't mean to butt into your thread, but I literally had this exact same question. In my case I'd be a college graduate either looking for a job or going to graduate school at one of the schools in/near the city. Is that even feasible given the cost of living? I want to move there so badly but I'm not sure if it is even in the realm of possibility.

Once again my apologies for butting in. If any mods or the OP feel that my question should be moved to it's own thread I understand.

NYC_2011
March 9th, 2009, 08:07 PM
I don't mean to butt into your thread, but I literally had this exact same question. In my case I'd be a college graduate either looking for a job or going to graduate school at one of the schools in/near the city. Is that even feasible given the cost of living? I want to move there so badly but I'm not sure if it is even in the realm of possibility.

Once again my apologies for butting in. If any mods or the OP feel that my question should be moved to it's own thread I understand.

I'm sure your question would be fine here since we don't need multiple threads on the same type of question. We just need to patiently wait for answers now :-)

BrooklynRider
March 9th, 2009, 08:11 PM
You and your wife can rent together and combine your incomes. Generally, you must earn about 40x your rent. Someone else can give you the precise calculation.

For both of you, some landlords will let you rent as long as you have a guarantor (a parent or relative who earns enough to cover the rent). It's a good time to be in the rental and purchase market in NYC, so good luck.

NYC_2011
March 9th, 2009, 08:27 PM
You and your wife can rent together and combine your incomes. Generally, you must earn about 40x your rent. Someone else can give you the precise calculation.

For both of you, some landlords will let you rent as long as you have a guarantor (a parent or relative who earns enough to cover the rent). It's a good time to be in the rental and purchase market in NYC, so good luck.

We have excellent rental history with 100% on time payments so hopefully that would be helpful. So you are saying we will most likely need a guarantor in order to meet the 40x criteria if we made only say 30x the rent on our combined income for whatever the rent rate was? Does that guarantor have to live in the state or can they be an out of state resident? (I highly doubt we would exercise the option of a guarantor since my wife and I are very independent and do not like to use anyone for anything)

Front_Porch
March 23rd, 2009, 01:09 PM
If you make $55K and your wife makes $60K, you make $115K. For a landlord that wants to use the 40x calculation, you can afford a stated rent of $2875.

The rental market is slow, so not every landlord will hold you to that ratio, but many still will.

If you see something that you like that costs $3,200, the larger landlords will give you the option of bringing in a "guarantor." The ratio that landlords are looking for there is not 40x, but more on the order of 70x. So in our particular hypothetical case, the guarantor has to make $224K.

It used to be that only Tri-State (New York, NJ, Connecticut) guarantors were acceptable, but again as the market softens, landlords are more willing to waive that.

Market might continue to change in the next 2 years, so don't get TOO far ahead of yourselves. Just keep your credit clean and we'll see you in the city in 2011.

ali r.
{downtown broker}

NYC_2011
March 25th, 2009, 03:16 PM
If you make $55K and your wife makes $60K, you make $115K. For a landlord that wants to use the 40x calculation, you can afford a stated rent of $2875.

The rental market is slow, so not every landlord will hold you to that ratio, but many still will.

If you see something that you like that costs $3,200, the larger landlords will give you the option of bringing in a "guarantor." The ratio that landlords are looking for there is not 40x, but more on the order of 70x. So in our particular hypothetical case, the guarantor has to make $224K.

It used to be that only Tri-State (New York, NJ, Connecticut) guarantors were acceptable, but again as the market softens, landlords are more willing to waive that.

Market might continue to change in the next 2 years, so don't get TOO far ahead of yourselves. Just keep your credit clean and we'll see you in the city in 2011.

ali r.
{downtown broker}

You are awesome thank you so much for responding to my question. This has cleared up all the confusion I had about this renting issue. My wife and I are coming during the 1st week of June. It will be our first time and we are mostly coming to get to know the area and have some fun as well. I know a week isn't enough to "get to know NYC" lol but that's all the time we have for now and maybe next year we can come for longer.

We are also planning on renting a car for just one day so we can drive up to the suburbs in Westchester County (White Plains, Scarsdale, New Rochelle, etc...) so we can see how those areas look as well just incase we wanted to live in the suburbs but I doubt we can afford to buy in suburbs when we move so I think we will stick to renting in the city for the first few years.

Again thanks everyone for your responses! :)

KenNYC
March 27th, 2009, 04:22 PM
I'm not sure whether this would apply or not, but a lot of landlords are also willing to accept a Letter of Credit as security, if you do not make the required multiplier of rent, for whatever reason. As a student, that is what I was forced to do, and it's been pretty painless when we finally got it right.