How to prepare if you are looking to rent in #NYC

How to prepare if you are looking to rent in #NYC

  • Javier & Thomas
  • 02/23/22

 

Transcript:

How are you guys doing, this Javier from the Thrive Real Estate Team at Compass and I'm joined here with Thomas from also from the Thrive Real Estate Team at Compass, we're in the same team, we are, nice, it's a miracle, three years now, wow that's great, three years now together, anyway we are here today to talk to you about rentals as many of you probably live in a rental or own or rental or neever rented before, yeah this we're in for a unique year this year so to give you a little bit of background over the last two years there's been a lot of inventory on the market right everybody left New York they said the city was dead yadda yadda they were wrong the city is alive people are moving in, banks are requiring all their employees to come back people that graduated over the last three years had to move here for their jobs all the service industry has to come back because now they have jobs again so there's this giant influx of people into what is typically a tough market to begin with fighting over inventory that is coming on the market because it was leased during pandemic pricing so wait explain to me, what's pandemic pricing? pandemic pricing is when there's a pandemic there's special pricing that pricing over the last couple years has looked as a bunch of free months severely discounted units ie some of my inventory would normally rent for 3600 to 4 000. during the pandemic was renting for 2200 right, so everybody yeah their units are during the pandemic rented for like half of what they would write usually yeah which is you know it was important for the landlords because they needed cash flow because they had to pay their mortgages however it created this system where people that moved into apartments that they wouldn't normally be able to afford now that we're coming out of a pandemic and we're having an influx of people coming back to the city and all these market rate apartments and there's a difference between market rate and rent stabilized but that's a whole other video um we'll talk about that some other time uh all these leases are coming up for renewal right because people signed two year leases they were like oh i'm getting the best deal ever i got this amazing apartment but now that the pandemic is essentially over uh we will see all of those leases that are expiring have their events doubled you know it was anywhere maybe not double but rents yeah i mean we're seeing we're seeing a 30 40 50 percent increase uh in some cases

the market is not just back to pre-pandemic levels they're above preventative levels at this point you know the other thing to consider about that before the pandemic right a market rate apartment maybe there was an incentive from the landlord to rent it right because it was there was a lot of inventory on the market, there was a lot of no fees that were on the market, you know landlords were paying the broker fees, and recouping it in a higher rent price but now because the ten the the market is so tight that those incentives are gone, the rents are up 30 40 50 percent and everybody who's in an apartment whose lease is expiring now has to go look for something new and so what seemed like a great idea at the time to move is now going to be biting many many people in the back neck, in the back neck, I was thinking of a different word but this is a family channel, so far, but yeah look we have different forces of play right we have people who are vacating apartments and they need other ones outside of the areas where they're at because they cannot afford that one anymore because of new prices we have landlords who already have all departments occupied and the forces of the markets are bringing people back into new york so we have high rents little inventory a lot of people looking for units and there are no concessions they're just no concessions anymore the no fees are not around anymore the free months are not around anymore all you see with their exceptions we're talking about the global aspect of the New York market and the Brooklyn market and the Queen's market there's two or three lenders who might still have some concessions but from 60 of units having concessions we're going to 10 of units having concessions well it's important to note those ten percent of units that have concessions you have to ask yourself why does it have a concession absolutely you know is it because it is overpriced or it's just such a terrible unit that nobody will rent, it unless the landlord gives something for somebody to rent it or it's a luxury unit most of the luxury units like where I'm talking luxury units that were five six thousand dollars most of them still have some kind of concession but still less than before right much less so what's the solution now say I'm a tenant I absolutely need an apartment and so how do I deal with this inventory well so to give you an example most of my business now is my own representation right and you know I have 300 units that I represent and when i'm receiving an application I am looking for properly prepared paperwork I'm looking for money in the bank i'm looking for good credit and I'm looking for you know full ask offers that are in the into the landlord because you have to remember my job as a landlord representative is to represent the landlord so I'm going through these applications and I'm taking the best application that is the most prepared with the earliest move-in day there my agents on my team are tenant agents right, and so what their job is is to help you the tenant to be prepared right I think there is there's a disconnect between expectations that were set over the last couple years of what a tenant needs to do to be ready it used to be a tenant could say oh I like this apartment here's half of an application and i want to move in a month from now right and landlords will be like oh okay that's great we'll take it now because everything is pretty much a multiple application situation really only people that are prepared are going to be winning the apartment, yeah I mean like honestly we have not put a rental on the market since November that lasts more than a day of showing yeah not one like there's not one that has been there more than a day of showing a lot of my rentals I'm renting they're not even hitting streeteasy they're only getting rented through the RLS because you know they're unless they say internal brokers database so if you would like to find off market inventory that's not on streateasy I highly suggest you go to compass.com where you're going to see what we list ahead of time before it makes it to the general public yeah that's a good plug we actually have all like I think two thousand more units than strategy I've listed right now okay like you go online on campus and you can find 2 000 more rentals in New York than you could find them in in the rest of the in in street easy these are the things that you need is a tenant you need to be ready you need to move fast and ready we mean not like oh ready to put the application you have to have the paperwork of the application ready this is a winter market like every other summer market has been in the last few years so what does it mean to be ready being ready doesn't just mean having your paperwork right you know being ready also means that you have your guarantor's paperwork ready if you need a guarantor, why would I need a guarantor, you don't make enough money, your credit's a little shaky, maybe you're fresh out of school and you don't have job history, you don't have income history, international international um you would need an american guarantor or a guarantor company in New York City usually the landlords are more amicable to guarantors who are in the tri-state area yeah and that's because the landlord if they have to go after the guarantor they don't want to fly somebody in from Ohio which is essentially what would happen. so this is where you know you're not going to like to hear this but this is where you are going to need an agent you need an agent because they can coach you on how to best prepare an application how to best have your paperwork ready they can coordinate all the showings for you they can tell you the best strategy because they know the market there's a good chance that a good rental agent has a relationship with the listing agent um which will give you a foot up because people that like each other like to work together right what else I mean I think that the main thing about being ready in this marketplace is having the paperwork like almost filled out ready to sign before you even go out and see any units and I think that is the failure that you see in most rental agents out there in the field and with most tenants out there in the field is that they come to a unit I want to apply hear the requirements give me three days you don't have three days if you need to move next month start asking your friends for recommendation letters start asking your co-workers for recommendation letters figure out what the paperwork that you're gonna need is a quick tip and big plug we have a renter's guide in our website but really like have everything ready in a folder physical folder or better yet upload it in a google drive so you can have it in your phone ready to send if you're meeting with us or one of our agents give us the paperwork we can review it we know every agent knows what a lender wants to see and not just a lender all landlords in New York has their have their little quirks and a trained agent know what a lender likes what a handler needs and what a landlord doesn't like and needing a specific in a specific case right so that's when it comes so let's this is important right like a lot of people in the public I see that they don't understand the difference between a landlord agent and a tenant agent as a representative of the landlord I have had tenants tell me I'm your client and you're not the landlord is my client I have to be respectful honest and open to you but my fiduciary responsibility is with the landlord if you as a tenant want an agent on your side you need a tenant agent, what is a tenant agent so a tenant agent you know you say the word fiduciary fiduciary essentially means that they are responsible to you and have your best interest that's really the difference between a landlord agent and a tenant agent is whose best interest do they have at heart you know everybody thinks that it's about the money you know that if they have a tenant agent that they're gonna they're not gonna negotiate on the best half it's actually inaccurate because when all of the finances are done we're talking about pennies that change hands over the course of you know price changes on an apartment right whether it's a 2500 or 2800 when it comes down to how that speed comes down it's really just pennies that are exchanged so having it having somebody on your side that represents you which is we're legally required to have your best interest at heart if we attend an agent then that means that hey we're going to give you the best advice to secure that apartment that may be you need to move up your move game you know for instance I don't have any landlords that will accept a move date further out in two weeks from now um that may be offering a little bit more let's say you show up to an open house and there's 40 people standing outside which is happening and you have three people there say they are putting an application in right now how are you gonna set yourself forward that's where your tenant agent comes in your tenant agent is gonna be able to best advise you on how to make your application stand out above the rest so if the landlord's agent is to sell the apartment to the public or to rent the apartment to the public the tenant's agent's responsibility is to sell the tenant to the landlord yeah and to pay the le the tenant in the best light for the lender to say you know what that's the person I want exactly you know and that I understand tenants want what they want absolutely however tenants that come off being difficult a landlord may say oh you know what this is too much of a process I know this is a hot market I'm going to pass on this tent right a tenant that is demanding or has like unrealistic expectations right, like orlando's gonna be like it's a hot market this tent this apartment will rent next week I don't need this tenant whereas a year ago two years ago the landlords didn't care they're like fine whatever will do anything that's just not the case anymore yeah so that's the real estate market the the rental market nowadays it's it it's for better for worse in favor of the landlords they have the upper hand, if you are looking to move inside New York, you do your homework find somebody to help you if you can afford it understand that there might be people who cannot afford a tenant's agent's fee but if you can't afford it you're going to find a better apartment in a quicker time probably for less money than if you go out and try to out compete these agents who are trained to do this every day um any other good tip that we can give our tenant friends here in case they have to look for an apartment in the next few months just be ready like be ready to sign tomorrow you say so that's also important start looking only four weeks ahead of your moon day don't go crazy and call me today if you need to move in July there's nothing for you to see nothing until June like for real apartments are not on the market for more than a few days and those who are on the market for more in a few days you don't want them that's just a reality yeah and that will change maybe in a few years I tell you a different story that's the story today to our landlord friends give us a call before you start asking for renews on your tenants because the prices have changed since you last put a tenant in there you want to re-evaluate there's also the new law that states how long before the expiration of at least you can you need to give them notice of a renewal what the percentage of that renewal is so people please stop acting blindly consult your professionals and here we are to help anytime, see you tomorrow see you next time subscribe like share boom click the links...

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