How to Get an Apartment in New York Right Out of College

After being asked the age-old question, "What are you doing after graduation?" You've decided that moving to New York City is an exciting and promising prospect.

With a population of about 8.5 million and a metropolitan area that boasts over 20 million, the Big Apple offers the most opportunities out of any urban area in the nation.

Whether continuing your graduate school studies at one of New York's fine institutions or starting a brand new internship or career, you'll need a place to call home.

Finding that home can be a daunting task.

Budget Appropriately

Counting pennies may be a must for most in their first year in New York.

Consider yourself one of the lucky few if you have a trust fund, can stay in your family's Pied de Terre, or have parents who can help buy a place for you.

However, if you aren't in that boat, that shouldn't mean you can't have a great first year in the big city.

Some will come into the city with a job offer and salaried position, others with a scholarship and monthly allowance, and others without any idea what they will land.

With over two-thirds of New York's housing market devoted to rentals, there must be something for everybody. The trick is finding it.

Follow the Formula

The landlord's rule is that you earn or have liquid assets equal to 40 times the monthly rent.

This means that if the rent for an apartment is $2,000 per month (not at all an unfeasible gross rent for something as small as a studio), you will need to be earning a minimum of $80,000 a year in annual income or have at least this amount in savings or checking.

Tip: Calculate What You Need to Earn to Afford Rent in New York City

Using this metric, you can successfully calculate how much you can afford for your first place.

Following this formula is not just helpful to a landlord but also helpful to you living your first year in the five boroughs.

Using this amount will allow for a good safety measure for not only being able to afford your rent but being able to budget for other living expenses, which may include but not be limited to groceries, utilities, wi-fi, transportation, R and R money, student loan payments, and other bills.

We advise you not to use something like a temporary student loan payment deferment to go wild on spending.

Budget wisely and always plan for the future.

Where in NYC Should You Live?

Manhattan can be an attractive and alluring siren call, especially if you want to experience all the city offers, including its vibrant nightlife, shopping, and culture.

For more affordability, look to north Manhattan around Washington Heights and Inwood.

However, living in the outer boroughs might be a better budgetary solution than splurging for the "ultimate" New York experience.

Remember, you can still have a full and rich experience living outside of Manhattan, notably if you reside near the main island.

That’s not to say neighborhoods like Williamsburg, DUMBO, and Long Island City are precisely affordable for most. Still, within the five boroughs, there are great options for budget-friendly living.

You can even find a door-busting deal in the sometimes prime spot!

However, if you do, be prepared for the unit to either disappear as instantly as it appeared or have some actual compromising features, i.e., a terrible roach infestation, the much-dreaded sixth-floor walk-up, the fact that it’s the size of a walk-in closet, or all the above or worse!

Average Monthly Rental Prices in New York City

Get to Know the City Before You Get Here

Research online, follow blogs or social media feeds and ask New York-residing friends or family about possible neighborhoods. Carefully consider your commute to your job or school.

If you don’t know what you’ll be doing yet, try to select areas with access to multiple trains or buses or offer a train line that can take you to a central hub.

Best Neighborhoods for Nightlife and average Monthly Rent Prices

Be Flexible with Commuting Options

Don’t sweat it if your commute time can potentially be beyond thirty minutes.

The average commute time for a New Yorker is approximately 40 minutes, and with mass transit issues, the time can be longer.

While this means there are people with a 15-minute commute, plenty of people are commuting for well over an hour.

There’s nothing wrong with getting up earlier! New York City is also bike-friendly, with ever-evolving new traffic laws and bike paths.

It’s great for nice weather and good exercise.

Why is My Credit Score so Important?

While there are still old-school landlords in New York that will take you at your word and require nothing more than a deposit and the first month’s rent to lease their apartment, most landlords and management companies will be looking for good credentials.

Most will rely on your monthly rent as certain income or money to pay creditors like banks for loans they have taken out.

They’re all relying on the income to pay out property taxes and renovation and maintenance expenses.

A credit score is the first place most of them will turn to determine if you are an excellent payor.

Read more: What Credit Score Do You Need to Rent an Apartment in New York?

The higher the credit score, the more lenders and landlords can pay your bills on time and in the required amount.

It doesn’t matter if you have an income.

Many people have solid earnings and don’t pay their bills on time.

This is why credit is a paramount part of the application process.

What If I Have Bad Credit or No Credit?

Because you've graduated recently, there's a good chance you don't have any credit, or maybe you've messed it up early, or you have a ton of student loans; after all, it's likely that no one's shown you the ropes in good budgeting and money management.

Don't despair at this point.

The most important thing is to open up a line of credit and start on your credit score or work on repairing it.

Ways to Get Around Bad Credit

If you need to apply for an apartment, you can put up extra security deposits, pay half to a full year upfront, or use your parents or someone close to you as a guarantor.

Your guarantor will be co-signing on the lease and guaranteeing it. They should have excellent credit, meaning at least 700 and above.

Management companies and landlords will require a 740 and above and up to 80 times the monthly rent.

Read more: What Is a Guarantor on a Rental Application?

Check Your Credit Report Regularly

Some recent graduates may have excellent credit, so you're all set in that department.

Let that be a positive launching point for your adult finances, on which you can build.

Check your credit score at least once a year, or check it online every few months (make sure when you do, it's "soft pull," meaning it won't affect your credit score and will be considered a severe credit inquiry) to stay on top of it.

You can also call your bank or research online on how to improve your credit rating.

Whatever you do, please do not take your score for granted in thinking it's great.

Credit companies and banks make errors; relatives may put bills under your name, which can considerably bring your credit score down.

If you want to apply for an apartment and the landlord sees you have a poor credit score due to an error from a bank, they are probably not going to give you a chance to correct it (it can take several weeks), so make sure it's in good standing before you do apply.

Rooms Vs. Apartments

While having an apartment is a great luxury if you can afford it, it probably won't be feasible or sustainable for the majority of young people entering the workforce in New York City or even attending school.

If you already have a group of friends moving to the city, it might be possible for you to go it in together by combining your resources.

Pros and Cons of Living with Friends

Living with someone can be an intimate experience, and you may discover unpleasant things about even very close friends or find that you are completely incompatible in a living situation.

It may ruin your relationships unless you already have had a positive experience living with the same friends.

Living with strangers may be more suitable for some, especially if you can keep the apartment environment according to more measured boundaries.

It's a gamble either way.

Many people use sites like Facebook and Craigslist to track down potential roommates.

Always be wary of who you are agreeing to look together with.

It would be wise to conduct your prescreening of potential roommates that include not only your likes and dislikes but also information about their employment and their credit.

While conducting an FBI-level investigation is unnecessary, it's wise to know if your potential roommate even qualifies for an apartment.

Read more: Apartment Room Share NYC: The Ultimate Renting Guide

Leasing a Room on Your Own

Because of the enormous demand, leasing rooms in shared apartments have become a separate market in the real estate biz.

Many people can't conjure up roommates instantly, and leasing a room may be the best option.

It makes living in New York a possibility for some and a great money saver, especially if you have a job that requires a lot of travel.

Remember that you will still be required to submit credit and financial information, but you will not be held individually responsible for the rent.

Legally, landlords must put all tenants as equal parties on the lease, meaning that if one person skips out on the rent, the other tenants will also be held liable for that amount.

Make Smart Rules

If you want to rent a room with others, whether they are friends or new acquaintances, make legally signed agreements amongst yourselves.

Lay down house rules for cleanliness, chores, noise, etc., and ground rules for bill and rent payments.

Make sure there is transparency in paying utilities.

Likely, the bill will be put under one person's name.

Place the monthly bills in a common area where everyone can see the amount due and split it equally or according to your agreement.

If one person is paying the rent or a utility, have the person post the payment receipt for all to see.

Hopefully, these suggestions will help make your first year in New York City as painless and enjoyable as possible.

All things are within reach. It just takes good planning and taking good advice.