Sterling23 Standard Procedures for Rental Units Application

The Budget: For obvious reasons, a budget is an important factor in determining what apartment or rental property a renter can afford. The price of a property depends on a variety of factors - size, location, condition, features, neighborhood amenities, schools among others. It is key to determine a budget at the beginning of the application process to have an understanding of what you can afford.

• Approximate costs of Application Process: (credit reports/application fee) - Both applicants and guarantors are required to submit credit reports, no exceptions.
• Credit reports and application fee is $20 per person.
• Lease signing requirements: Once all completed application materials have been submitted, Sterling23 can usually get our clients approved for their apartment or rental property that same day.
• Almost all applications are approved within 1-2 business days.
• Renter must have completed all application materials. This includes reference letters and supporting documentation.
• Approved clients are expected to sign lease immediately and provide necessary funds. Lease signings take place within 24 hours of application approval.
• Renters sign their lease and provide necessary funds regardless of when the lease starts.
  • Funds: Renters generally provide 1st month's rent and equivalent of 1 month's rent as a security deposit.
  • This money is fully refundable in case a client gets rejected.
  • When paying the deposit ask for a receipt that states, the money will be refunded if you are rejected.
  • When signing a lease, renters should have funds for rent, security and broker fee (if any).
  • Money should be in a certified form Bank Checks: Certified checks or Money orders.
  • Personal checks are not accepted.
• Miscellaneous Fees:
  • Sometimes landlords/management companies require new tenants to pay a move in deposit.
  • This fee can range from $250 - $600.
  • Move in fees are usually refundable as long as there is no damage done to a building while moving.
  • Some landlords/management companies require renters insurance.
  • When renting in a condominium or in a co-op, renters should expect processing fees, move in fees and other miscellaneous fees sometimes in total of $250 - $1100 in non-refundable fees.

General Approval Requirements

Approval Requirements differ depending on the landlord/management company and/or on the building. The following are general guidelines that apply in most instances:

If you think your credit report is bad, advise your Sterling23 broker so they can prepare you for the application process. Landlords/management companies have different ways of dealing with credit problems.

Some landlords/management companies allow renters to increase security deposit while others require a guarantor. Some may simply reject the application. Your Sterling23 broker will advise you in order to save you time, money and frustration.

• Renters need to show  annual income of at least 40-50 times monthly rent.
• Renters must show a secure and stable employment history.
• Renters needs to have good credit history. A major component of the approval process is based on the credit report.
• What makes a credit report bad?
  • A couple old late payments are usually ok.
  • High revolving balances are not good.
  • Past due payments that are outstanding are bad.
  • Delinquencies and collections are very bad.
  • Renters must show a good rental history.
• Rental, credit and employment information is generally referenced and submitted in form of a letter or sometimes by a phone call.
• Renters need to have a social security number. If you do not have a social security number or are not applying for one you must have a guarantor co-signing your lease.
• Bank Statements: In most cases landlords/management companies require copies of a renters' 3 most recent bank statements from a checking, savings, stock account or any other financial institution.
• Renter should have backup detail sheets available upon request.
• Most rent application forms require listing bank account information.
• Letter of Employment: Renter should get a Letter of Employment on their company's letterhead, with the following:
  • Position
  • Length of employment
  • Annual income.
• In majority of cases an offer or an acceptance letter for a new position is not sufficient to show employment.
• Letter of Landlord Reference: Letter of reference from a previous landlord is one of the most important reference letters a renter can submit to a landlord/management company who is processing their application.
• Pay Stubs: copies of renters' 3 most recent pay stubs are usually required.
• Students need to have a guarantor co-sign their lease.
• Certain buildings won't accept students. This is legal in NY State and not challengeable in a court or law.
• Tax Returns: Some landlords and some management companies require potential renters to include a copy of their most recent Federal Tax Return (1040).
  • Renters should have their tax return available just in case it is required.
  • Self-employed renters: if income comes from different sources, you will be required to submit tax returns and a letter from a CPA stating the nature of your business, as well as, projected future income.
  • Business owners looking to rent are almost always required to submit a tax return.
• If renters do not meet the above mentioned criteria there are usually two possible solutions:
• Renters can get a co-signer or guarantor to co-sign the lease for you.
• Some owners will allow tenants to prepay 6 months to 12 months rent up front.
• Guarantor or co-signer: A guarantor or co-signer is a person who guarantees the entire rent for the entire lease term and lease renewals should a renter default on their rent payments. A guarantor can be anyone who agrees to sign on behalf of a renter and who is willing qualified to act as a guarantor.
• Qualifications of a guarantor or co-signer: documents required from a guarantor are similar to applicant(s):
  • Application Form: Same form as the applicant fills out.
  • Credit Report: A guarantor's credit report must be in good standing.
  • Federal Tax Returns: A guarantor is required to submit federal tax returns as proof of income.
  • Guarantor must show annual income of 80-100 times monthly rent.
  • A Guarantor is not required to be present at lease signing.
  • In some cases, landlords/management companies require a guarantor to reside in the tri- state area (New York, New Jersey or Connecticut).