I have $100,000 in the bank but no income. Can I still rent an apartment in NYC?
- Most NYC landlords want renters who earn an annual salary of 40 times the monthly rent
- Using a personal or institutional guarantor might allow you to get around that requirement
- Personal guarantors must make 80 times the monthly rent and reside in the tri-state area
Most landlords want steady income—and can no longer accept more than one month's rent for a security deposit.
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I'm looking to leave my college dorm to rent my own apartment in New York City next semester. I’ve been saving up and have a trust from a family member, which will total $100,000-$150,000 by the time I’m ready to move. As a student, I don't have a steady income. Will I have trouble qualifying for an apartment?
When it comes to rental conundrums, lots of New Yorkers would envy this situation. Having six figures in your bank account certainly puts you in a pretty solid position. That said, most landlords want to see that you are earning an annual salary of 40 times the monthly rent, so your rental application won’t be a typical one.
As such, landlords may approach your situation in different ways—some could consider your overall financial situation and approve you as is.
But without a salary, your best bet is to find a guarantor, usually a parent or other relative who lives in the tri-state area.
"Every landlord is different," said Daniel Kandinov, an agent at Corcoran who helps smaller landlords and individual owners screen rental applicants. "Some might be fine with the numbers but others want a guarantor no matter what."
Just know that not all buildings accept guarantors. And due to changes to the rent laws, landlords can no longer take more than one month's rent as a security deposit on a rental—which used to be a pretty common workaround in lieu of a paycheck.
[Editor’s note: Realty Bites tackles your NYC rental questions. Have a query for our experts? Drop us an email. An earlier version of this post was published in March 2023 and has been updated with new information for August 2024.]
How does a guarantor work?
According to Kandinov, in the current market, landlords ask renters to find a guarantor who makes 80 times the monthly rent annually to be approved so they can cover your rent and their own expenses should you run into financial trouble. That can be a tough hurdle to clear.
On the bright side, if you don't have anyone who can act as a guarantor (or who can meet that threshold), more landlords accept institutional guarantors.
Need help finding a landlord with flexible requirements? The rental experts at The Agency, a Brick Underground partner, know exactly where to look. If you sign up here, you can also take advantage of The Agency's corporate relocation rate—where you'll pay a broker's fee of 10 percent of a year's rent on open listings instead of the usual 12 to 15 percent. Bonus: The agents at The Agency are a delight to deal with.
Some institutional guarantors will qualify renters whose annual income is as low as 27.5 times the monthly rent or have cash assets or marketable securities that are 45 to 50 times the monthly rent.
If you still can't pass either of these tests, you may be able to qualify if your parents or another personal guarantor can show a minimum of 50 times the monthly rent in annual income or 80 times the monthly rent in liquid assets.
You'll have to pay a fee for this service, so budget about 65 to 85 percent of a month's rent. The fee is closer to a full month's rent if you are a non-U.S. employed renter without U.S. credit history or international student.
Another option you may want to consider is looking for an apartment in a building that’s run by a mom-and-pop landlord, as opposed to a large management company. Small landlords are sometimes more willing to work with a unique situation like yours.
The ultimate takeaway
You may have to shop around a bit more than usual and be strategic in getting your application in tip-top shape.
The general advice for people searching is to use an agent that is tapped into the market to find the best option as soon as it comes up. The inventory is still pretty low, so if you are looking for a landlord that accepts specific guarantors or third-party guarantors, you will want to be first in line.
Kandinov recommended lining up a guarantor just in case—and before you even begin searching—so you don't end up losing that dream apartment because of your lack of income.
"The rental market is competitive, so even if you might not need a guarantor, you want to come out with a rock-solid application and put yourself in the best possible position," he said.
—Earlier versions of this article contained reporting and writing by Virginia K. Smith, Nikki Mascali, and Emily Myers.
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