The Real Costs of Renting an Apartment

May 30, 2007

Not yet ready, or have sufficient assets, to buy an apartment in Manhattan? Renting is certainly a viable option. But there are a lot of upfront costs to renting an apartment in New York City, and this Manhattan broker is going to be quite upfront in listing them! There are a bunch of fees associated with renting an apartment. Let's assume you rent an apartment for $2,500 a month.

(1) Broker's Fee (15% of first year's rent)- $4,500

(2) Application Fee-can range from $100-$300

(3) Credit Check Fee-can range from $35-$75

(4) security and first month's rent- $5,000

All told, roughly $10,000 in upfront costs. Some buildings will also require an additional month's rent in security. Rule of thumb: Be sure to have at least four times the monthly rent liquid before you start looking.

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