Before you start this article, you can take a look at Lynn, one of our professional sales executives at Acre, to explain in detail the common problems encountered in purchasing insurance during the rental process! Click on the video preview! The first two issues have explained in detail the rental process and living area that you need to know in the early stage of studying in New York. Today, I will introduce you how to successfully sign a contract and move in when you finally choose your desired house. New life in New York!
Real estate in New York generally has different requirements for occupants. Generally well-managed mid-to-high-end real estate requires a good credit record, no criminal record, and an annual income that meets 40-45 times the rent. Then, as a student’s resident, how can I meet the requirements for occupancy?
At present, most of the mid-to-high-end real estate in New York City are basically more than 95%. The policy for international students/people whose income does not meet the 45 times the rent requirement has been changed to mandatory purchase of occupancy guarantee insurance, and one-time prepayment or overpayment is not accepted form of deposit.
Why do you have to purchase guarantee insurance? The main reason is that the United States is a country with a credit system. Landlords have a strict screening mechanism for tenants. If there is no credit or no income, there is no way to rent normally. In this case, the tenant is required to purchase insurance through a guarantee company as a guarantee. In other words, in case the tenant does not pay the rent, the guarantee company needs to compensate the landlord for the loss. This is the role of guarantee insurance.
So why doesn’t the building accept a one-time prepayment of one year’s rent? In fact, the good intention of the government reform is to protect tenants, because for local tenants in the United States, renting a one-year rent is actually a very big economic pressure. To protect tenants and for tax clearing reasons, the policy has been reformed to not allow one-time rent advance payments.
In addition to New York City, New Jersey City can accept other forms of renting, such as an overpayment of a security deposit, or a one-time prepayment of one year’s rent.
01 Direct purchase of insurance (traditional insurance):
Non-international students apply for single and multi-person application for guarantee insurance:
A. Provide proof of parents’ income, which is required to be 45 times the annual income of rent or provide proof of parents’ deposit, which can be a fund , stocks, demand or time deposits. The requirement is that the amount of the rent is 75 times the rent and the fees to be paid before moving in are:
1. The first month’s rent – to the landlord of the building;
2. The first month’s deposit – to the landlord of the building, and then check out according to Home damage will be refunded.
*A total of 2 months rent is required!
02 Use the guarantee company The Guarantors to apply for insurance premiums for single or multiple persons:
About 0.6 times the rent [this fee is not refundable]
about 0.6 months rent to the insurance company as insurance premium – non-refundable;
the first month rent to Building landlord;
one month deposit to the building landlord, and finally refunded after check-out according to the damage of the house.
*A total of 2.6 months rent is required before moving in Rental Insurance.
International Student Application
01 Traditional insurance policyholders apply:
A. You need to submit your own information and materials
Before moving in, you need to prepare:
1. About 0.6 months of rent to the insurance company as insurance premium – [this fee is not refundable];
2. The first month’s rent is paid to the building Landlord;
3. A one-month deposit will be given to the building landlord, which will be refunded after check-out according to the damage of the house.
*A total of 2.6 months rent is required before moving in.
02 Can I have other guarantees besides buying guarantee insurance?
The answer is yes. You can also use a personal guarantor. The personal guarantor needs to have a tax return record in the United States, and the tax return amount meets 80 times the house rent. For example, for a house with a monthly rent of US$4,000, the annual income of the guarantor needs to exceed US$320,000.
The personal guarantor needs to fill in the application form together with the renter and submit personal materials for review. And the name of the guarantor will finally appear in the contract, which needs to be signed for confirmation.
What kind of rental materials do international students need to prepare for renting a house? Our Acre sales executives are super thoughtful to organize the following preparation materials for home.
#01 Documents proving valid identity:
I20+ Passport home page + Visa (must be valid during the lease period).
#02 Documents proving enrollment/OPT:
Enrollment letter from the school / Offer Letter / Course Schedule / EAD Card.
#03 Proof of valid bank information in the U.S:
The latest Bank Statement (can be downloaded from Internet Banking).
#04 Landlord reference letter: (required for some properties)
Previous proof of residence, which can be in the building rent history/ Recommendation letters written by previous landlords/ Payment records of previous dormitories and friends who have worked in New York, and the materials that Acre’s sales executives need to prepare for renting in New York are also listed for you.
Later period of renting:
After everyone successfully signs the rental contract, the rental requirement in New York is to pay one month’s rent and one month’s deposit within 7 days after signing the rental contract. The payment method can be payment from the real estate’s own network system or payment by cheque. If it is paid by the network system, usually a 3%-5% handling fee will be deducted for paying the rent by credit card. You can choose the method of electronic remittance ACH, and leave the routing number and account number of your bank account for deduction, so that you do not need to pay handling fee.
Secondly, for online payment, it is recommended that you can choose the form of auto-pay in the future. The system will automatically transfer the account to your bank card every month, eliminating the trouble of paying rent every month.
If you pay the rent by check, please use your account to go to the bank counter to open a “bank certified check”/”Cashier Check” to pay the corresponding amount. Remember, no personal checks are allowed! It must be printed by the bank and signed by the bank.
Here is a reference for everyone:
Q# Signing the contract? Do I need an appointment to move?
After going through the application process and signing the rental contract, you can move in on the first day of the contract.
If you have large furniture when moving, you need to make an elevator reservation with the building management office. If you move at the end of the month, it is recommended to make an appointment early. The appointment method is also very simple. You can directly contact the Management Office of the building. The reserved elevator can be used for two hours.
In order to make it more attractive, many buildings will give 1-2 months of rent free for new residents in the first year of occupancy. However, the renewal of the lease is no longer free, so the rent will be higher than the previous year. Especially in New York, which is a good place with an inch of land and a lot of money, it is inevitable to increase the rent sure! We can help you find the next tenant to take over the lease.
Recently, we have also launched a new short-term rental project with reasonable fees to help everyone find tenants quickly, and provide professional property management services (key handover, house cleaning, purchasing furniture, etc.). If you need it, you can contact us.
Customer service WeChat: What are the ways of subletting AcreNYC3
Tenants need to submit an application to the building. Most apartments allow sublease and require written permission from the landlord or management. You can check the contract signed with the apartment before you move in, and there will be detailed terms and conditions. The management of the building will conduct a Background Check on the new students to ensure that the new students meet the qualification requirements of the apartment. The cost of this process is mainly the application fee. New students need to pay rent, security deposit and other related expenses to the landlord.
#02 Release your responsibility for the rental contract Lease Swap:
It is the most concerned question for many students when subletting: “Can I completely break away from this rental contract?” This is generally called lease swap (replacement contract).
If the time of subletting is relatively long, you can release all responsibilities of yourself and the rental contract by changing the method of Leaseholder and reduce the risk. But many buildings do not allow it. In addition to completing the building application process for new tenants, adding or removing leaseholders generally incurs additional costs.
#03 The landlord can also set the sublet tenant as a legal resident Occupant:
In addition to the above relatively complicated process, you can also sublet by adding an occupant (co-occupant), so that you only need to let the students who move in later submit an application as an occupant, After paying the application fee, you can move in smoothly. General buildings only need to register the basic information of Occupant, without management approval or background check, which is relatively easy and simple. If the rental period is relatively short, or short-term rental between friends, this is the easiest and easiest way to choose. It is recommended that both parties sign an agreement before subletting.
Here, we also want to remind everyone of the most important point: the housing lease contract will take effect immediately after signing the lease agreement. If you cannot go to live after signing the lease agreement, you must inform the apartment and discuss solutions. Otherwise, the apartment has the right to chase you for the entire lease term.
In the United States, unilaterally breaking a contract without permission is not only irresponsible, but also has a huge impact on your credit record. In severe cases, you may go to the housing court, or you may be dismissed from the school, summoned by the court, or even in serious cases. will be deported.
I hope that the latest New York rental guide prepared by Acre sales executives will be helpful to friends who are coming to New York for school or work in the fall. If you have any rental questions or want to see the latest listings, remember to add our Acre cute customer service! We offer remote viewing services to be the first to find your new home in New York!