Buyer’s and Renter’s Guide A Guide to Buying and Renting in New York City Renters Building Terms Apartment Terms Search Here For School Reports, Neighborhood Profiles, and Home Values By Zipcode Welcome to New York City The “Big Apple” is one of the nation’s most exciting and best loved cities. The Peraino Baumann Team at Prudential Douglas Elliman, we recognize that searching for an apartment in New York City may seem a bit overwhelming at first. Knowledge of what to expect, understanding the process and terminology, and learning about the present New York real estate market will be extremely important in helping you to find the perfect home. Our sales and rental agents are trained and ready to help you with all aspects of your search. Their experience and expertise will guarantee that it will be a successful, rewarding and enjoyable experience. This Guide is intended to provide the basic education needed before beginning your apartment search and will assist you during each step of the purchase process. Refer to it frequently! While this guide is designed specifically for your New York City real estate search, please remember that Prudential Douglas Elliman can assist you through our branch offices located throughout the Metropolitan New York area. We can offer help anywhere in the U.S. or internationally through our Relocation Services Division. Orientation Before you even begin to look for an apartment, you need to know how to orient yourself in New York City. This is easier than most people imagine. Visitors are usually shown around by someone who points out landmarks but never explains the simple layout of the City. Here it is: New York City is composed of five boroughs: Manhattan, Brooklyn, Queens, the Bronx and Staten Island. Many people who work in Manhattan commute from the other boroughs or from Long Island, New Jersey, Connecticut and upstate New York. However, a great many people relocating to our area, and those working in New York City, want to live closer to the center of activity and to their jobs in Manhattan. Manhattan is an island oriented north-south with Central Park at the middle. The City is organized on a grid pattern: avenues run north-south, and streets run eastwest. Street numbers descend toward the south (downtown). There are exceptions to these rules, and avenues sometimes end or change their names; for example, Eighth Avenue becomes Central Park West at 59th Street, where Central Park begins. The grid concept, however, is fairly regular throughout Manhattan, north of Greenwich Village. Fifth Avenue, which runs along the east side of Central Park, is the dividing line between the East Side and the West Side. Midtown is the area between 34th and 65th Streets. Uptown is above Midtown (to the north) and Downtown is below (to the south). As mentioned earlier, the basic grid structure of the streets ceases when you reach Greenwich Village (at about 14th Street). The pattern is broken here because this area is the oldest part of the City, and the streets were developed in the 17th and 18th centuries in a random fashion (along cow paths, for example). Below the Village, Houston Street (pronounced "How-ston") marks the end of the numbered streets. Below Houston, streets are named. Neighborhoods What most non-New Yorkers fail to realize is that New York City's neighborhoods are constantly in flux. The character of many neighborhoods has altered dramatically in recent years. Columbus and Amsterdam Avenues (the Upper West Side) were considered near slums thirty years ago but are now characterized by renovated buildings filled with young professionals. Other areas have undergone similar change. TriBeCa, which traditionally housed light manufacturing, has been transformed into a residential neighborhood. The Upper East Side has extended its borders to the north — a host of new luxury buildings have gone up in the East 90's. It's important to mention that almost every neighborhood in New York will afford you an array of services. You will not have to travel far to find a dry cleaner, a "deli" or full-service supermarket, movie theater, health club, or anything else you might consider. It's also important to be aware that Manhattan prices are somewhat consistent regardless of neighborhood. www.uppereastsideluxuryhomes.com Upper East Side The Upper East Side is home to many of New York's best co-ops and condos and covers the area of the City north of 59th Street and east of Fifth Avenue. The apartment buildings that line Fifth and Park Avenues house some of the most expensive properties in the City. This is a wonderful family area; however, it is still a comfortable place to live for many singles and young professionals. One will find many elegant shops and boutiques, excellent private and public schools, access to Central Park as well as museums such as The Metropolitan, The Guggenheim, The Frick, and The Whitney. Within the boundaries of the Upper East Side are areas such as Carnegie Hill, East End Avenue, and Yorkville. It is a safe, popular and predictable area in which to live. www.midtiownluxuryhomes.com Midtown East On the East Side of Manhattan in the Midtown area (east of Fifth Avenue in the 40's and 50's) are neighborhoods such as Sutton Place and Beekman Place. This is home to the United Nations (42nd Street and the East River) and to many consulates. Many companies are headquartered in the Midtown area from Fifth Avenue to Third Avenue, and as a result these neighborhoods become great for walking to work. www.murrayhillluxuryhomes.com Murray Hill Murray Hill, on the border of the east side of Midtown, is one of the areas which is providing a viable opportunity for people to live within walking distance of their jobs. Murray Hill is bound by Fifth Avenue to the East River, and 29th Street to 42nd Street. The streets adjoining Park Avenue are lined with townhouses and can be quite charming. Murray Hill offers a wide selection of apartments. There are several newer high-rise buildings along First Avenue in the 30's that offer views and amenities such as pools and health clubs. The area around Third Avenue and 34th Street has a wide array of restaurants, movie theaters, and after-work meeting spots. Murray Hill's central location makes it easily accessible to most areas in Manhattan. www.gramercyparkluxuryhomes.com Gramercy Park Gramercy Park is another East Side neighborhood and is situated between Park Avenue South and Third Avenue, and 17th and 23rd Streets. Its focal point is a private park exclusive to residents of specific buildings around the park. The Park's orientation discourages thru-traffic; therefore, the neighborhood's character is that of a quiet island somewhat insulated from the surrounding city. The Park is bordered by beautiful 19th century townhouses, and the neighboring streets have many brownstones. Available apartments are scarce and quite expensive, if on the Park. Moving slightly away from the Park itself offers more affordable options. www.greenwichvillageluxuryhomes.com Greenwich Village and East Village Greenwich Village, and the West Village, has been widely known as a bohemian community of artists and writers since the 1920's. It continues today to be a popular and active place to live. New York University lies at its center, at the lower end of Fifth Avenue (8th Street), so the entire Village is a popular spot for young students. The residential streets remain beautiful, quiet and elegant with many attractive old brick townhouses. Lower Fifth Avenue is bustling and is the home to many businesses moving south from Midtown. Given the lack of high-rise buildings, the inventory of apartments is low, and as a result the Village can be as expensive as any other area of Manhattan. The East Village has emerged as an entity of its own. The areas close to lower Fifth Avenue have always been popular; however, the revitalization has moved further east. First and Second Avenues have been transformed with restaurants, art galleries, and night spots. The available housing consists mainly of walk-up buildings which are now being refurbished. Conventional high-rise doorman buildings are not as prevalent in this neighborhood as other neighborhoods. www.chelsealuxuryhomes.com www.flatironluxuryhomes.com Chelsea and Flatiron Chelsea is located from Sixth Avenue (Avenue of the Americas) to the Hudson River, between West 14th Street and West 29th Street. Chelsea, which is close to the garment center of Manhattan and in the midst of the flower district, has a less secluded character than Gramercy Park or Murray Hill. The apartment make-up is comprised of many walk-up buildings and some lovely brownstones, with loft-type buildings as well. Chelsea is not home to many high-rises; however, there are some larger buildings on West 14th and 23rd Streets and on some of the avenues interspersed throughout the neighborhood. In the past several years the area has undergone a renaissance. Many new stores have opened up along Sixth Avenue, and Eighth Avenue is now home to an impressive array of interesting restaurants and shops and the Joyce Theater. The very westernmost blocks of Chelsea have also become home to many noted art galleries. www.soholuxuryhomes.com www.tribecaluxuryhomes.com Soho and Tribeca From a manufacturing center twenty years ago, SoHo (which stands for South-of- Houston) has developed into an expensive neighborhood, both for housing and shopping. The neighborhood's transition was caused largely by a spillover from Greenwich Village, the traditional center of off-beat living styles in New York City. SoHo is also famous as the home of artists, some of whom moved in long ago when rents were low and others who have had financial success. There are dozens of well established art galleries, specialty food stores and sophisticated restaurants. In recent years Tribeca (which stands for Triangle-Below-Canal) began to resemble SoHo. The lofts once used for light manufacturing and warehouses have slowly been converted into beautiful residential apartments. There are many high priced, fashionable restaurants and clubs in the area, and although there are not the same number of visual arts galleries that marked the renaissance of SoHo, Tribeca certainly has its share of avant garde clothing and design shops. In both neighborhoods the housing stock is primarily expensive lofts, some renovated and some with only raw space available. www.midtownluxuryhomes.com Midtown West / Clinton Midtown West, or Clinton, is situated above Chelsea and ends at Columbus Circle, 59th Street and Broadway. This is an up and coming residential area which has long been home to many theater and dance professionals. There are hi-rise condo buildings interspersed with smaller prewar buildings and loft spaces. Midtown West is the home of Times Square and the Broadway theater district. www.batteryparkcityluxuryhomes.com Battery Park City Battery Park City is a mixed residential and commercial neighborhood within easy walking distance of the entire Downtown business district. The housing which is new is part of a carefully planned and designed development built as a result of cooperation between the State and the City Governments and private developers. Battery Park City is a small city within the city with shops, restaurants, and even a marina. Because of its location, views of the New York Harbor and Downtown skyline can be spectacular. This is an ideal location for those wishing to walk to work on Wall Street. www.upperwestsideluxuryhomes.com The West Side and The Upper West Side The "West Side" begins at Columbus Circle (59th Street and Broadway) and extends north to 110th Street and beyond. In the mid 1960's the construction of Lincoln Center, which houses the Metropolitan Opera, the New York City Ballet and the New York Philharmonic, sparked the revitalization of the Upper West Side from a white collar neighborhood to the cultural hub of the city that it is today. Lincoln Center and the large, new residential buildings surrounding it constitute the centerpiece of the West Side. It is from this well established base that the revitalization of the Upper West Side (from 72nd Street north) has taken off. The area comprises a diverse population. The West Side has become a desirable location for young professionals seeking modern high rise buildings and charming brownstones, as well as families who require the type of space that the pre-war buildings along West End Avenue, Riverside Drive and Central Park West provide. Central Park West has become the rival of Fifth Avenue for luxury and views. One will find excellent private schools, access to Central Park and Riverside Park, high style shops, boutiques, specialty food shops, restaurants and cultural institutions such as the Museum of Natural History, The New York Historical Society and The Manhattan Children's Museum. The housing stock has everything: pre-war luxury buildings, brownstones, walk-ups and new, large, luxury condominium buildings. www.harlemluxuryhomes.com Harlem The area of Manhattan known as Harlem, starting at 96th on the Eastside and 110th Street on the Westside, has a large stock of 19th century brownstones with great, original architectural details from the 1880's. Many neighborhoods are undergoing renovation as people look to Harlem as a new frontier for more affordable housing. Some of the key Harlem neighborhoods are the famous Strivers' Row from West 138th to West 139th Street with beautiful brownstones, Mount Morris Park from 120th to 125th Street, Hamilton Heights from West 145th to West 155th Street, and Fifth Avenue from 125th to 132nd Street. Prices are generally lower than other Manhattan areas and there is an excellent subway and bus transportation system. You can get more detailed neighborhood information buy using te following links: Alphabet City | Astor Row (Central Harlem) | Battery Park City  Carnegie Hill | Chelsea | Chinatown | Civic Center | Columbus Circle Coop City | Diamond District | Downtown Manhattan East Harlem | East Village | Five Corners | Flatiron District  Flower District | Fort George |Garment District | Greenwich Village  Hamilton Heights | Harlem | Hell's Kitchen | Inwood | Kips Bay  Lincoln Square | Little Italy | Lower East Side | Manhattan Valley | Marble Hill | Meatpacking District | Midtown | Morningside Heights | Murray Hill  NoHo | Peter Cooper Village | Roosevelt Island   SoHo | Sugar Hill | Sutton Place | Times Square | TriBeCa Tudor City | Turtle Bay | Union Square | Upper East Side Upper West Side | Washington Heights | West Village Yorkville Buying In Manhattan We've tried to think of the easiest way to guide a prospective buyer through the maze of finding an apartment in New York City. We hope that the following will be of help. The rules are different in New York City! Some of the information contained here may seem cumbersome; however, we can guarantee that if you do your homework, the process will flow much more smoothly. Our job at Prudential Douglas Elliman is to help you determine which type of apartment is suitable for you, to assist in neighborhood selection, to educate you regarding real estate prices, and to select an agent best matched to your needs and budget. Cooperatives and Condominiums New York is a city comprised mainly of cooperative and condominium apartments with a smaller selection of private homes which we call townhouses or brownstones. Most important is understanding the differences between the two types of apartments you will find in Manhattan. What is a Cooperative (Co-op) ? Cooperatives are not a new concept, although they seem to be a type of ownership that is more common in New York City than elsewhere in the United States. In New York City, 85% of our apartments available for purchase are in cooperative buildings, while 15% are in condominiums. This means two very simple things to potential buyers in New York City: 1. There is more inventory to choose from if the buyer includes co-ops into the mix of properties 2. Prices are, in general, more attractive for cooperatives — simple supply and demand. Cooperatives and Condominiums Cooperatives are owned by an apartment corporation. Individual tenants do not actually "own" their apartments as they would in the case of "real" property. One owns "shares" in the corporation which entitles them to a long-term "proprietary lease." The corporation pays the total amount of the building's mortgage (importantly, a cooperative may have an underlying mortgage on the entire building, whereas a condominium must be owned outright), real estate taxes, employee salaries, and other expenses for the upkeep of the building. The tenant-owner, in turn, pays a share of these expenses as determined by the number of shares the tenant owns in the corporation. Share amounts are dictated by apartment size and floor level. The considerations when buying a cooperative are: 1. The tenant-owners have the right to "approve" or "disapprove" of any potential owner. The Board of Directors, which is elected by all of the tenant-owners of the co-op, interviews all prospective owners. They have the responsibility of protecting the interests of their fellow tenant-owners by selecting well-qualified candidates. 2. The quality of services and the security of the building are kept at high standards. 3. Portions of the monthly maintenance are tax deductible. Each building has its own tax structure, but all co-ops offer a tax advantage. Shareholders can deduct their portion of the building's real estate taxes, as well as the interest on the building's mortgage. 4. The amount of money that may be financed is determined by each cooperative. Some buildings require substantial down payments. Generally speaking, in Manhattan prospective purchasers should be prepared to "put down" at least 20 to 25% of the purchase price. Importantly, this could be higher in some buildings. 5. Subleasing a co-op must be approved by the Board of Directors of the cooperative. Each corporation has its own rules, and they should be examined if a potential owner intends to sublet. Cooperatives and Condominiums With this in mind, it is important to remember that co-ops are the norm here in Manhattan, not the exception. However, before beginning a search for a cooperative apartment, think about the financing limitations and the application and interview process. What is a condominium ? While condominiums are quite common throughout the country, they are a rather new concept for New York City. A condominium apartment in Manhattan is real property. The buyer gets a deed just as though you were buying a house. Since this is real property, there is a separate tax lot for each apartment. Hence, this means you pay your own real estate taxes for your property. An owner will also pay common charges on a monthly basis. Common charges are similar to maintenance in a cooperative. However, they will not include real estate taxes since these are paid separately, nor will it include the building's mortgage and interest given that a condominium, by law, cannot have an underlying mortgage. Condominiums are attractive for a variety of reasons: 1. Financing the purchase of a condominium apartment is much more flexible than in a cooperative. Generally, a buyer can finance up to 90% of the purchase price. 2. While there is an application process, this is not as formal as in a cooperative. The likelihood of rejection is minimal. 3. There is greater flexibility in sub-leasing your apartment. This makes condominiums the choice for investment property. 4. They are the ideal choice for non-U.S. citizens or for those with their assets held outside of the United States given that co-ops are unlikely to approve a buyer whose funds are not in the U.S. Given that there are fewer condominiums than cooperatives and that they are "easier" to purchase, they are generally more expensive than co-ops. Additionally, monthly combined common charges and real estate taxes in a condo are typically less than a co-op's monthly maintenance charges, again resulting in higher purchase prices. What is the Purchase Process? The steps to purchasing a co-op or a condominium in Manhattan are very similar. Let us assume that you have found the property on which you wish to place an offer and that you have spoken to a bank or mortgage broker (if financing) to determine a comfortable and qualifiable price level. 1. Offers are made orally in New York City. When you have found the right property, a bid or offer will be placed through your agent. They will convey your offer to either the seller's agent or to the seller directly. 2. The seller may "counter" your offer. This will begin a negotiation process that will eventually lead to a "meeting of the minds," at which point price, terms, and closing date have been agreed upon. 3. Contact a real estate attorney familiar with real estate in our area to represent you. The seller's attorney will begin preparation of a contract of sale, and during that time your attorney will begin to examine the financial condition of the building in which you wish to purchase. 4. After your lawyer concludes that the financial condition is satisfactory, that the by-laws of the building are acceptable to you, and that the contract of sale is also acceptable, your attorney will allow you to sign the contract. At that time you will usually be required to present a deposit of 10% of the purchase price. The contract will then be forwarded for signature by the seller with the deposit. This money will be held in the seller's attorney's escrow account until closing. It is important to note that until all parties have signed the contract, and it has been delivered, the seller can still entertain and accept other offers. What is the Purchase Process? 5. If financing, you should move forward with your loan application. 6. You will, by now, have received from your real estate agent the board requirements and application materials. The application materials can be similar for a cooperative and condominium. However, the actual process is quite different. You will work to complete all of the required materials which typically include: an application, a financial statement signed by a CPA, all requisite support for your financial statement, three years of tax returns, bank statements, letters of personal and financial reference, letters of professional reference, the contract of sale, bank documents (if financing) indicating that your loan is in place, etc. 7. When your "package" is complete, it will be reviewed by an Prudential Douglas Elliman Manager, and then, assuming it is accurate, it will be forwarded to the managing agent for review. Upon determination that it is in order and that credit checks were acceptable, it will be forwarded to the Board of Directors. No applications will be accepted by a Managing Agent unless they are complete. 8. In the case of a cooperative, if your application meets initial approval, you will be invited to be interviewed by the Board or by an interviewing committee. Please take this meeting seriously. It should be treated as a business meeting. 9. After approval by the Board, you are ready to begin planning for a closing! In the case of a condominium, there is generally no formal interview. Your application will be reviewed, and if all required materials are included and in order, an approval is typically granted. The entire process can move quickly in a condominium, and assuming a loan can be secured in a timely fashion, one can move from contract to closing in about 60 days. However, the cooperative process is more involved, and 60 to 90 plus days is not unusual. Closing Costs The following guide will give you general closing costs associated with the purchase or sale of a cooperative or condominium. Please note that these are estimates and that potential buyers and sellers should consult their real estate attorney or financial advisor for specifics. Importantly, we do not represent that these are the entirety of potential costs, but are only to be used as a guide. Typical Estimated Closing Costs: Cooperative Apartments FOR THE SELLER Broker: Typically 6% Own Attorney: Consult your attorney Co-op Attorney: $450.00+ Flip Tax: 1% to 3% of Price (if applicable) Stock Transfer Tax: $0.05 per share Move-out Deposit: One time fee of $500.00+ NYC Transfer Tax: 1% of price up to $500,000.00; or, 1.425% of price if $500,000.00 and over. NY State Transfer Tax: $4.00 per $1,000.00 of price Payoff Fee to Title Closer: $250 - $500 UCC-3 Filing Fee: $100.00 FOR THE PURCHASER Own Attorney: Consult your attorney Bank Fees: $350 - $750 Application Fee: $350.00 Processing Fee: $280 Appraisal Fee: $300-$1,500 (depending on sales price) Credit Report Fee: $9.80 single/$14.60 joint Bank Attorney: $750 Lien Search: $250-$350 UCC-1 Filing Fee: $100 Mansion Tax: 1% of entire purchase price where price is $1,000,000 or more. ADDITIONAL REAL ESTATE EXPENSES Miscellaneous Co-op Charges: Vary by building Recognition Agreement Fee: $200+ Maintenance Adjustment: Pro-rated for the month of closing Short Term Interest: Equal to interest for balance of month in which you close. Closing Costs Typical Estimated Closing Costs: Condominium Apartments FOR THE SELLER Broker: Typically 6% Own Attorney: Consult your attorney Processing Fee: $450+ NYC Transfer Tax: 1% of price up to $500,000; or 1.425% of price if $500,000 and over. NY State Transfer Tax: $4 per $1,000 of price Miscellaneous Title Fees: $200-$500 Pick-up/Payoff Fee to Title Closer: $100-$300 Miscellaneous Condominium Charges: Vary by building Note: For condominiums in new developments, the purchaser will pay costs normally paid by the seller. These include seller attorney fees as well as New York State and New York City Transfer Taxes. FOR THE PURCHASER MORTGAGE CLOSING COSTS Buyer’s Attorney: Consult your attorney Bank Fees: $350-$750 Application Fee: $350 Appraisal Fee: $300-$1,500 (depending on sales price) Credit Report Fee: $9.80 single/$14.60 joint Bank Attorney: $750 Tax Escrows: 2 to 6 months Recording Fees: $200-$500 Mortgage Tax: 1.80% of amount of mortgage on loans under $500,000; or 1.925% of amount of mortgage on loans of $500,000 and over Fee Title Insurance: Approx. $400 per $100,000 of sales price Mortgage Title Insurance: Approx. $200 per $100,000 of mortgage amount Municipal Search: $350 Mansion Tax: 1% of entire purchase where price is $1,000,000 or more. ADDITIONAL REAL ESTATE EXPENSES Common Charge Adjustment: Pro-rated for the month of closing Real Estate Tax Adjustment: Pro-rated depending on when the tax is collected Miscellaneous Condominium Charges: Vary by building Short Term Interest: Equal to interest for balance of month in which you close Renting in Manhattan We've tried to think of the easiest way to guide a prospective renter through the process of finding an apartment in New York City. We hope that the following will provide you with a step-by-step, easy to follow outline of the entire process of renting in New York City. The rules are different in New York City! The items which we categorize as "necessary" in this guide are crucial. It may seem cumbersome; however, we can guarantee that if you do your homework, the process will flow much more smoothly. Assume that there are no exceptions to the items on these lists. 1. Speak to your Prudential Douglas Elliman rental agent, at (866) 260-9822 (toll free) for counseling and to determine when to come to New York to begin your search. At that time, schedule your appointment. Your needs will be discussed, questions will be answered about the process, and you will be assigned to an agent best matched to your needs and budget. 2. Organize and prepare the necessary information to bring with you, including: • Letter of employment and salary verification (include start date if not yet employed) • Bank account numbers (checking and savings), credit card numbers • Names, addresses and phone numbers of previous landlords • Names, addresses and phone numbers of accountant and attorney, if applicable • Names, addresses and phone numbers of personal and business references • Tax returns • Pay stubs • Expected bonus (verification from employer) • Additional sources of income with verification • Personal identification with photograph — driver's license or passport Renting in Manhattan 3. If relocating, prepare the necessary funds before coming to New York. Landlords will not accept personal or out-of-state checks. They require certified funds. Anyone renting or relocating must: • Try to establish a New York bank account before you begin your search. If this is not possible, bring the necessary funds with you. • Bring enough traveler's checks to cover the cost of two (2) month's rent (which must be converted into CERTIFIED CHECKS). This comprises the first month's rent and one (1) month's security. • Bring funds to cover the broker's fees if your company is not paying the fee. Brokerage fees are paid by you, the tenant, in New York City. These fees are due upon signing of the lease. However, if your employer is paying the real estate commission, they will be billed directly. • Bring funds to cover a Credit Check: $25 to $50, which can be paid by personal check. • Bring funds to cover possible move-in/move-out fees (See Co-op/Condo Funds Needed). 4. The day of your appointment you will meet with the agent who will be working with you. Then you will be taken to each apartment that the agent has scheduled for you to see. 5. When you have made your apartment selection, you will be asked to fill out a rental application and one or more miscellaneous documents. Your agent will negotiate price and lease terms for you. Upon acceptance, a credit report will be done, and your references will be checked. 6. Leases will be signed and checks presented. Important Financial Considerations AFFORDABILITY As a guideline, you can expect to pay 25% of your gross annual salary for rent. FINANCIAL ELIGIBILITY To qualify for tenancy, most landlords require that you annually earn 40 to 50 times the amount of the monthly rent. Remember to take into consideration outstanding loans and liquid assets. Landlords are rigid in New York City, and cooperative buildings can be even more demanding. LEASE GUARANTORS If your salary level and total financial picture does not meet the landlord's requirements, you will need a co-signor, or guarantor, to guarantee the lease. Landlords prefer a family member who lives and owns property in New York, New Jersey or Connecticut. The guarantor must earn ample income. Extensive financial documentation may be required and paperwork cumbersome. Prepare your potential guarantor for this possibility in advance. Employers will seldom guarantee on behalf of employees. INTERNATIONALS If you pay taxes outside of the United States, or if you have a housing allowance from your employer, your eligibility is evaluated differently. Discuss these areas with your company's relocation department and with your agent. Types of Buildings to Choose From In New York City there are three types or categories of buildings in which you can rent: a rental building, a cooperative, and a condominium. Each of these types of properties have their own rules and regulations. It is important to understand the distinction between them as this will influence the timing and parameters of your search for a home. Our agents will work closely with you to determine which type of accommodation is the perfect fit for you and your lifestyle. RENTAL BUILDINGS Definition: The entire building is owned by a landlord, and all of the apartments are available for lease. None would ever be available for sale. A rent stabilized rental building is subject to guidelines for yearly rental increases. Rent stabilization was established in the late 1960's in response to the critical housing shortages and low vacancy rates in New York City. Rent stabilization sets limits on the amount that owners can raise the rent for vacant apartments or renewals of existing leases. The guidelines for yearly increases are set in July and become effective every October. As a tenant in a rent stabilized building one has the right to renew the lease indefinitely and the right to sublease the apartment with the Landlord's permission, subject to obeying all the terms of the lease. A non-stabilized rental building is not subject to any specific guidelines. The rent level is based on a free market system subject to typical supply and demand influences. The terms of the lease are established by the landlords' specifications and requirements. Options for renewal may be included in the lease. Types of Leases Rent Stabilized Lease or Non-Stabilized Lease Type/Style of Housing Hi-Rise Luxury Buildings, Pre-War Buildings, Elevator Buildings, Brownstones, Walk-ups. Rental buildings can be virtually any type of building found in New York City. Approval Process 1 to 7 business days When to Begin Your Search Not more than 4 weeks before you would like the date of the lease to begin. Apartments are not vacant for long in New York City, so the "window" for viewing is a small one. If you begin your search too soon, none of the apartments you saw will be available when you're actually ready to sign a lease. Funds Needed First month's rent; one (1) month's rent for a security deposit (which is refunded upon vacating the apartment, assuming that the apartment is returned to the landlord in the same condition in which you received it, and that the terms of the lease have not been violated); and funds for a credit check to be conducted. The brokerage commission is due upon lease signing. (If company is not being billed separately.) Cooperative Building (CO-OP) Definition: A cooperative (also known as a co-op) is a building which is owned by a corporation comprised of the tenant shareholders of the building. Each tenant shareholder owns a number of shares in the corporation associated with his or her apartment (the number of shares depends on the apartment size and floor where the apartment is located) rather than owning the apartment itself. The tenant shareholder has the right to occupy the apartment as his or her home by holding a proprietary lease to that apartment. Importantly, in co-ops you are subletting from an individual who in turn becomes your landlord. Rental prices are established by supply and demand and, as such, can vary widely. The building is subject to rules and regulations set forth in the By- Laws of the corporation. An owner of an apartment in a co-op must get permission from the Board of Directors of the co-op to rent the apartment. When permission is granted, the lease is subject to any restrictions or qualifications placed on subleasing by the Board of Directors of the cooperative. Types of Leases A co-op Sublease Agreement is the type of lease issued. The lease term is usually for one year with the option to renew based upon Board approval. In most co-ops owners are not allowed to rent for more than a two year period. Type/Style of Housing Pre-Wars, Post-Wars, Brownstones or Townhouses, Luxury Hi-rises, Lofts Cooperative Building (CO-OP) Approval Process The approval process can take anywhere from 4 to 6 weeks. A "board package" must be submitted to the Managing Agent of the cooperative for review by the Board of Directors. The elements of the board package differ from building to building; however, in almost all cases extensive financial information is required: tax returns, financial statements with all verification, personal and business references, etc. In most co-ops the board requires a meeting with the prospective tenant. Importantly, in a cooperative there is the risk that a prospective tenant can be denied acceptance by the co-op's Board of Directors. When to Begin Your Search Since approval for tenancy is a lengthy process, you should begin your search at least 6 weeks before you would like the lease to begin. Funds Needed Fees associated with co-op leasing can range from $200.00 to as much as $1,000.00. The fees include the application processing fee, credit check, and movein and move-out fees which are usually refundable. The first month's rent and one month security are due as well. As always, the brokerage fee is payable upon lease signing. (If company is not being billed separately.) Condominium (CONDO) Definition: A condominium or Condo is a building in which the apartment is classified as "real property" and is owned by an individual. You, the tenant, lease the apartment directly from the condo owner. Rents, as in co-ops, can vary widely as they are determined by supply and demand. Types of Lease Condominium Sublease Agreement: Since there are no restrictions concerning how long an owner is allowed to rent, length of lease can be negotiated. Type/Style of Housing Usually Hi-Rise Luxury buildings; very rarely Pre-Wars. Condos are a relatively new phenomena to New York City, and as a result tend to be more recent construction. Approval Process An approval process is usually required, but it is not as difficult as the co-op process. A board meeting may or may not be required. The length of time for approval varies from building to building, but it is usually not as long as a co-op approval process. When to Begin Your Search 4 to 6 weeks prior to desired lease date. Funds Needed The first month's rent; one month rent for a security deposit; application fees; movein/ move-out fees are also necessary, and they can vary. Again, the brokerage commission is due at lease signing. (Unless your company is being billed separately.) Building Terms Brownstone or Townhouse: 4 to 6 story buildings built in the 1800's through the early 1900's. These can be single family houses or can have been converted over the years into multiple apartments. As a single family home, a townhouse or brownstone offers buyers privacy and the ability to purchase without the cooperative board process. Some apartments in townhouses can have grand living spaces and, therefore, will be quite expensive. Generally, these buildings afford more "charm" with features such as gardens, fireplaces, beautiful floors and ornamental wood moldings. In almost all cases these buildings will not have a doorman. Elevator Buildings: This description is usually reserved for a non-doorman building that is six to twenty stories tall. There is usually an intercom security system, and some may have video security. These buildings could fall into the prewar or the post-war category. Loft Apartments: Former commercial or Industrial buildings that have been converted into apartments. Generally, these are large open spaces with high ceilings. They are usually found in Greenwich Village, SoHo, TriBeCa, Chelsea, Flatiron and lower Manhattan and often do not have the services of a doorman. Luxury Doorman Buildings: These are generally associated with new construction or are apartment buildings that were built from the 1980’s throughout he present. These buildings tend to be condominiums. They are typically twenty to forty or more stories with doorman and concierge services. You may also find many with health clubs and swimming pools. Prewar Buildings: Prewar buildings are those built before World War ll. These buildings are usually ten to twenty stories and are not known for views, except of course those along the Park or River. They are recognized for architectural interest with features such as larger rooms, fireplaces , hardwood floors and higher ceilings. These can be doorman or non-doorman buildings. Postwar Buildings: These buildings were built between the late 40’s through the 1970’s. They are generally hi-rise and are constructed of white , red or brown brick. Most will have doormen. Postwar apartments may actually afford more space than their prewar counterparts in studio, one and two bedroom sizes. Walk-Up Buildings: This is the least expensive type of housing, and the quality can vary widely. Usually these are 4 to 5 story buildings with no doorman and no elevator, hence the term "walk-up." They were originally constructed as multi-family housing and lack the charm and elegance of traditional brownstones or townhouses. Apartment Terms Familiarize yourself with the following terminology. It's almost all unique to New York City. It's also important to know that we speak in "number of rooms," as well as using the definitions below. A room in Manhattan must be at least 100 square feet and have a window...except in the case of a kitchen. Most kitchens are considered rooms, unless they are Pullman types, which would be found as part of the living room. And we don't count baths as rooms. So, a Three Room Apartment would be comprised of a Living Room, a Kitchen and a Bedroom. A Four Room Apartment would have a Living Room, a Kitchen, Two Bedrooms, or One Bedroom and a Dining Room. You'll hear the term Half of a Room, e.g., Three And A Half Rooms. This means that the Living Room has an alcove adjacent to it which is not quite the size of a true room, or in some cases it may mean a foyer large enough for dining. Review the list below, and check with your agent for further clarification. Alcove: An area adjoining the living room space of an apartment. It is generally less than 100 square feet and, hence, not considered a full room . It can be used for dining or an additional sleeping area. Depending upon size, it may actually be “walled off” to create an additional bedroom. Alcove Studio: A one or two room apartment with a separate alcove (see above) which can be used as a sleeping area. Classic: The word "classic" is usually followed by a number indicating the number of rooms in an apartment. It is generally associated with pre-war apartments that meet a criteria of room numbers and design for buildings of that period. However, a “classic” can exist in a post war Convertible or Flex: This is typically an apartment with an alcove adjacent to the living room that can be used to create another bedroom. By utilizing this "flexible" space, we can "convert" the apartment from a one bedroom to a two bedroom. Hence, a one bedroom with this alcove could be called a Convertible or Flexible Two Bedroom. Apartment Terms Duplex: In New York this means an apartment Junior: Again, this is an apartment with an alcove off of the living room which can be converted into a bedroom or used for dining. A Junior 4, for instance, would be a three room apartment (living room, kitchen and bedroom) which has the potential to be four rooms by using the alcove space to create an additional room. Loft Area: This is an additional space created in apartments with very high ceilings. The loft area is constructed above the traditional living area, accessed by a staircase or ladder, and used for extra storage, sleeping or living space (e.g., a mezzanine). Studio: One or two rooms with combined living and sleeping area. If the studio is one room, the kitchen will be of the Pullman variety. If it is two rooms, the kitchen will be separate.

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