How to rent out my co-op

Absolutely necessary to speak with last 2-3 landlords and confirm dates of occupancy with each to insure no gaps. I would reject anyone who cannot provide these no matter what their circumstances. I would also search courts in the places any applicant lived to see if they've been involved in litigation. Employment letter is essential. Bank statements for last 3 months will show an applicants financial patterns. Anyone providing a check numbered #102, for example, I'd reject. Anyone with a check from someone else, I'd reject (mommy or daddy or third party). I'd require first, last and 1 month security or no deal. If they can't come up with 3 months rent, I wouldn't want them.

You are stepping into a world of potential headaches and nightmares you need to seriously do all you can to minimize your exposure to the risks. Even doing all this, I've been a LL before, and sometimes I got it right, and sometimes I didn't. And boy, when I didn't, I was very unhappy.

Speaking from a tenant's point of view since I am looking to rent a place in the city, I have no problem providing my bank statements, tax returns, and an employment letter. But I would not give 3 months deposit because many, not all, rentals now are actually looking for two and I have seem 1.5 for some strange reason.

You definitely need to spend some money by having someone do a credit check. If someone wants to rent your place and he/she has a six figure bank account and good credit, I suggest you take it.

A "six digit band account"? Unless you are counting the decimal point followed by two zeros as digits, who on earth keeps $100,000 in a bank account? If that is what you are holding out for, good luck.

Hmm, I had a bank account for almost 20 years and then the bank was purchased by Chase and I was given checks starting at 101 and a year later I'm on 120. kylewest is just a paranoid and doesn't know how to properly evaluate a potential tenant.

That said, you may not either, but don't lose sight of this, there are many many many rental options in NYC, many many many of which are easier, require less paperwork, don't require a broker fee, offer 2 months free rent, barely any of them ask for 3 months upfront. So, your difficult rental (even if you don't ask for the 3 months) better be well priced.

I wouldn't outright reject someone who needs help from a parent, like a student--I rented my co-op to a university student but insisted the parent's name also be on the lease. We reviewed financials of both parent and kid, and they both had to meet with the board for approval. The situation's worked out better than I could have hoped for (exemplary tenant(s)!)--it's been a win-win all around.

Oh, and I got 2 months deposit + 1 month security, though that may be harder to pull off in the current climate.

Kyle--it's actually not unusual, especially these days, for someone to keep upwards of $100K in a bank account. But yes, I agree it makes no sense to hold out for that when vetting potential renters.

I agree that a younger person with the guarantee of a parent is usually very good. The parents are not going to want to risk having any damage done to their credit report. So come hell or high water the rent gets paid. This assumes they all have good credit/financials to start with...

"Anyone providing a check numbered #102, for example, I'd reject."

Unless I'm missing something, this is just goofy.

Do you have someone to check the info on a standard rental agreement? A friend manages a 43 unit building in Los Angeles & he says that he has access to more info on someone than he thinks is really even moral BUT if you're handing the keys to your property to someone it would probably be reassuring to have seen that info. Good luck. Kyle is right; the wrong tenant can be a nightmare.

p.s. Be sure you've got plenty of liability insurance!

kyle's attitude is what creeps me out about nyc....so much hassle to rent, move in, etc.

the problem isn't kyle's attitude--he is offering genuine advice. he says it best "You are stepping into a world of potential headaches and nightmares. don't shoot the messenger.

To be fair, I understand that Kyle may well be right. The problem is NYC's tenant protection rules I suppose,, which end up penalizing solvent, honest renters with lots more hassle than in other cities.

Yeah, once you hand over the keys the balance of power shifts dramatically in the tenant's favor. It's absolutely imperative that you use a louse comb (figuratively, of course--possibly literally as well...) when vetting potential renters--as soon as they take possession you're stuck with them, for better or for worse.

It's good to get some honest opinions here. This was just an option I was exploring since I have seen so many "rent by owner" listings on Craig's List and the likes. However, if it is too risky then I will go through a broker. Just trying to learn as much as I can from everyone.

I don't know about NYC, but I have a condo in DC that I rent out (I live in NYC now). It could be worth considering, if available, assigning management to a property management company which would handle all details of advertising unit, finding tenants, running credit/background checks, getting guarantors, if necessary, creating board package, and handling collection of rents. If you're not going to be living in NYC it's especially useful as they'll handle management aspects, included dealing w/ problems (with your approval) of any maintenance related issues. They'll usually charge 7% of the monthly rent for these services.

I'm not a broker, nor do I work for a mgt co. but I've found that it's less of a headache to have a third party company manage the property that way.

With all the no fee and incentives available I think you need to list your apartment "no fee". I list all my exclusives this way now and put them out to the brokerage community as "collect your own fee", 75% of the time I do the deal directly.

Most large firms will want a month fee from you to list "no fee", I work for half a month or less depending on the property. This way I can advertise it "no fee" to all my direct clients,other brokers can show the property and charge their clients less since I would not ask them to share the commission. The important thing is the apartment is getting maximum exposure, it is important to hit on all cylinders.

Take a look at the listings I have rented on SE, so far very very good. Again listing with a broker that can show and advertise the property no fee is the way to go-whom ever you use. I am a bit selective with what I list, but am always happy to answer any questions via e-mail.

http://nycrentrant.blogspot.com/ www.theburkhardtgroup.com

Burkhardt, and you screen the applicants yourself?

Yes. credit, bank statements, employment letter etc... I also go by my intuition, after 17 years you get a sense of who will be trouble. I treat all my small owners property as if it were my own.

There is an old saying in NYC that a LL reference letter is about as good as the paper it's printed on. If a LL wants a tenant out...of course he will write a glowing recommendation.lol Wisdom from an old time NYC Landlord.