Broker Fees & Guarantors

The 40x Rent Rule

New York City landlords require tenants to prove an annual income equal to 40 times the monthly rent. For a $2,500 apartment, you must earn $100,000 annually. Summer interns rarely meet this threshold. Landlords will require a guarantor.

Using a Guarantor

A guarantor is a third party, usually a parent, who legally agrees to pay the rent if you default. In NYC, guarantors must prove an annual income of 80 times the monthly rent and reside in the United States. If you cannot provide a personal guarantor, institutional guarantors like Insurent or The Guarantors offer policies for a fee equal to roughly one month of rent.

Broker Fees

Unlike most housing markets, NYC renters frequently pay the broker fee even if the landlord hired the broker. This fee ranges from 12% to 15% of the annual rent. On a $3,000 apartment, a 15% broker fee is $5,400 due at signing. This is a sunk cost and is never returned.

No-Fee Apartments

Search strictly for "No-Fee" apartments on StreetEasy to avoid broker costs. The landlord pays the broker or manages the property directly. You only pay the first month of rent and a security deposit. Summer sublets usually bypass broker fees entirely because you are renting directly from the current tenant.