Classification of Apartment Rental in New York
Apartment rentals in New York City can be categorized in three types, which go hand in hand with building types in NYC. These buildings are:
1. All rental buildings
2. Co-op buildings
3. Condo buildings
Any person who is interested in a rental apartment in New York should very well understand these three kinds of buildings because each of them has its own merits.
All Rental Buildings
First of all we will try to help you understand more about the type of rental buildings. When an entire building belongs to only one landlord then it is called all rental building. These are again of two types.
1. Stabilized type of rental building
2. Free market type of rental building
Stabilized apartment is a building where the landlord cannot increase the rent more then that sanctioned by the state. Normally, this limit is around 2% to 3%. On the other hand there is no limit on the increase in rent if it is a free market type of rental building. As the name itself suggests, the landlord has the liberty to increase the rent according to his or her wish.
When you apply for an apartment in the all rental building, you get the approval in approximately on week. All you need is an income and credit check and security deposit. In most of the cases the security deposit is not more than the rent of one month.
Cooperative Buildings: Only in New York City
Co-ops or cooperative type of buildings are typical of New York City only. If you have preliminary knowledge of corporate structure, you can easily understand these types of buildings. People share stock in these buildings similar to the stock market. That means the entire building does not belong to any single individual. Value of the share varies with the size and valuation of the apartments.
Renting an apartment in these buildings is not as easy as it is in the all rental buildings. There are a number of restrictions. There is a restriction on the duration of the lease, roommates and pets. Application charges and other fees are also very high in co-ops. You cannot hide any personal secrets, as they require very extensive financial and personal information. You will be disappointed if you are in a hurry, because the approval process takes a long time.
In case of condominiums or condos, each apartment in the building belongs to different individual people. Here owners are at the liberty regarding the length of lease and amount of rent. However, the condo board decides application charges and move-in fees. The approval process takes a minimum of one week and a maximum four weeks. Usually, rent of one month is deposited as a security deposit. However, in some cases it may be higher.