Why use Essential New York Should you rent or should you buy? New York's three main types of apartment leases What to bring on your apartment search Building and apartment terminology and definitions Why use Essential New York To help you negotiate the complex Manhattan real estate market, you need the help of an experienced Essential real estate agent. Why? Here are five of the best reasons: 1. Your time is valuable! Don't waste it looking through countless listing resources and inappropriate apartments. Your Essential New York agent is a knowledgeable market professional who will analyze your housing needs and match you only with available apartments that suit your needs. Spend your time wisely with our rental experts and find your new rental home quickly and efficiently. 2. Your money is precious! Don't overpay. Our agents know the value of the type of home you seek in our ever-changing Manhattan marketplace. Each is a professional negotiator who knows when a rent is "asking" and when its "firm". Our agents will get you the best rental value for your dollar. 3. Your interests are paramount! Don't expect a landlord's representative or an on-site agent to represent you. Your Essential New York agent will represent only your interests and negotiate from strength so you deal with the landlord over the table not over a barrel. 4. What you don't know can hurt you! There is no such thing as a "standard" lease in Manhattan. Leases can be complex and our agents analyze each lease, getting the right lease on the best space for you. We know the buildings, the players and the leases. That gives you a powerful advantage in negotiations. 5. You don't do this everyday! Most tenants sign or renegotiate a lease infrequently, yet rental housing is usually your most significant financial expense. Our experienced market professionals search for homes, and negotiate leases every day. It's what we do for a living.
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SHOULD YOU RENT OR SHOULD YOU BUY? You've probably heard that buying a home may offer important tax advantages. If you've never owned a home, you may not understand what that means. Although many people enjoy the pride and sense of accomplishment that comes with owning a home, it's the tax advantages that really prompt many renters to take the plunge and buy a home. Just as an example, let's say you buy a home and your mortgage payment is $3,000 a month including real estate taxes. In the early years of the life of the mortgage, most of the payment is interest, so almost all of that $36,000 ($3,000 x 12 months) could be deductible from your taxable income. If you are paying income taxes at a rate of 28%, a $36,000 deduction means a tax savings of just over $10,000... or more than $800 a month. It's easy to see why people decide to buy. In this example not only do you get a place to live, you get a tax break of $10,000 and all the appreciation as your home grows in value. Gain from sale of a principal residence. The act allows taxpayers to exclude up to $250,000 of gain ($500,000 for married couples filing a joint return) realized on the sale or exchange of a principal residence occurring after May 6, 1997. Unlike the "one time" exclusion provided under prior law, the exclusion is allowed each time a taxpayer sells or exchanges a principal residence, although the exclusion generally may not be claimed more frequently than once every two years. Also unlike prior law, the taxpayer is not required to reinvest the sales proceeds in a new residence to claim the exclusion. To be eligible, the residence must have been owned and used as the taxpayer's principal residence for a combined period of at least two out of five years prior to the sale or exchange. The taxpayer must recognize gain to the extent of any depreciation allowable with respect to the rental or business use of such principal residence for period after May 6, 1997. Tax advantages like deductions from taxable income and the deferral of tax on profits when you sell a home are some of the important reasons why many individuals and families chose to buy rather than rent their homes. Renting is relatively hassle-free: the owner worries about taxes, compliance with city regulations, maintenance, service and supplies. Therefore, for many people, renting can be a convenience, especially if their lives are in flux, or likely to change soon. In addition, the decision to rent often does not represent as great a long-term commitment, both financially and emotionally, as buying and owning an apartment. Many people rent initially with the expectation that after they get settled and/or established, they plan to buy and move. The bottom line is that a rental apartment may be a good short term-solution to your housing needs but ownership of a cooperative or condominium apartment is likely to offer you significant tax advantages and a better place to live, as well as considerably more long-term stability.
NEW YORK'S THREE MAIN TYPES OF APARTMENT LEASES PRIME LEASE A prime lease is a lease that comes directly from the building owner. If the building has more than five separate apartments, they are probably "rent stabilized" under the New York State rental guidelines unless they have rents above $2,000 per month and have been officially been registered as "decontrolled". Common aspects of rent stabilized leases are:
Common Aspects Of Decontrolled Leases are:
SUB-LEASES Sub-leases are generally used for renting a cooperative apartment or a rental apartment for a period of the remaining lease. Since owners in cooperative buildings are technically owners of shares in the Apartment Corporation, each shareholder is a proprietary tenant and has the right to sub-lease his or her apartment. Common aspects of a sublease are as follows:
CONDOMINIUM LEASES Leases for condominiums are often similar to leases in rental buildings. However, the owner is a private owner, as opposed to a general building owner. Common aspects of the condominium lease are listed below.
WHAT TO BRING ON YOUR APARTMENT SEARCH In today's hot real estate market, time is of the essence if you want to guarantee that your dream home is yours to rent. That means having all the necessary paperwork and materials ready and available before you begin your apartment quest. Essential New York recommends that you bring the following items with you:
Essential New York recommends that you line up necessary funds particularly if you are relocating from out-of-town since landlords require certified or bank funds and will not accept a personal check out of the Tri-state area:
BUILDING AND APARTMENT TERMINOLOGY AND DEFINITIONS Luxury doorman buildings Usually refers to new construction or apartment buildings that were built within the past twenty or so years. These buildings tend to be condominiums, typically stand twenty to forty or more stories tall and provide concierge services. Many have health clubs and/or swimming pools. Pre-war buildings By definition, a building built before World War II. These buildings are usually ten to twenty stories tall and are sought after for their larger rooms, fireplaces, hardwood floors and higher ceilings. They may or may not provide a doorman. Post-war buildings These buildings were built between the late 1940s and the late 1970s. They are generally hi-rise and most have doormen. Elevator buildings This term usually describes a 6 to 20 stories tall non-doorman building which may be pre-war or post-war. Elevator buildings usually have an intercom or video security system. Walk-up buildings This is the least expensive type of housing in Manhattan and the quality can vary widely. Usually these are 4 to 5 story buildings with no doorman and no elevator. They were originally constructedl as multi-family dwellings and do not exude the charm or elegance of brownstones or townhomes. Brownstone or Townhouse 4-6 story buildings built in the 1800s to early 1900s. These can be single family houses or may have been converted over the years into multiple apartments. They are prized for their charm and elegance. In almost all cases these buildings do not have a doorman. Loft apartments Former commercial or industrial buildings that have been converted into apartments. These buildings almost never provide a doorman and usually consist of vast spaces with high ceilings. Most lofts are found in Greenwich Village, Soho, Tribeca, Chelsea or the Flatiron District. Apartment terminology and definitions Studio One or two rooms with combined living and sleeping areas. Alcove studio A one or two room apartment with a separate alcove which can be used as a sleeping or dining area. Alcoves usually adjoin the living room space of the apartment, are generally less than 100 square feet and can sometimes be walled off to create an additional bedroom. Junior One An apartment with an alcove off of the living room has been converted into a bedroom or dining room. Convertible or Junior 4 This is typically an apartment with an alcove adjacent to the living room that can be used to create another room by using this "flexible" space to "convert" the apartment from, for example, a one bedroom to a two bedroom. Classic The word "classic" is usually followed by a number indicating the number of rooms in an apartment. It is usually associated with pre-war apartments that meet criteria for numbers of rooms and design. However, a "classic" can exist in a post-war building assuming it follows the same guidelines. As an example, a "classic six " is comprised of a living room, dining room, kitchen, two bedrooms and a maid's room. A "classic seven" is comprised of a living room, dining room, kitchen, three bedrooms and a maid's room. Loft area This is an additional space created in apartments with very high ceilings. The loft area is constructed above the living area, accessed via a staircase or ladder and used for extra storage, sleeping or living space (e.g. an office.) Duplex In Manhattan this refers to an apartment with two floors or levels and not to two apartment units.
