Buyer’s and Renter’s Guide

A Guide to Buying and Renting in New York City

Welcome to New York City

The “Big Apple” is one of the nation’s most exciting and best lovedcities. At Prudential Douglas Elliman, we recognize that searching foran apartment in New York City may seem a bit overwhelming at first.Knowledge of what to expect, understanding the process andterminology, and learning about the present New York real estatemarket will be extremely important in helping you to find the perfecthome.

Our sales and rental agents are trained and ready to help you with allaspects of your search. Their experience and expertise will guaranteethat it will be a successful, rewarding and enjoyable experience. ThisGuide is intended to provide the basic education needed beforebeginning your apartment search and will assist you during each step ofthe purchase process. Refer to it frequently!

While this guide is designed specifically for your New York City realestate search, please remember that Prudential Douglas Elliman canassist you through our branch offices located throughout theMetropolitan New York area. We can offer help anywhere in the U.S.or internationally through our Relocation Services Division.

OrientationBefore you even begin to look for an apartment, you needto know how to orient yourself in New York City. This iseasier than most people imagine. Visitors are usuallyshown around by someone who points out landmarks butnever explains the simple layout of the City. Here it is:New York City is composed of five boroughs: Manhattan,Brooklyn, Queens, the Bronx and Staten Island.

Many people who work in Manhattan commute from theother boroughs or from Long Island, New Jersey,Connecticut and upstate New York. However, a greatmany people relocating to our area, and those working inNew York City, want to live closer to the center of activityand to their jobs in Manhattan.

Manhattan is an island oriented north-south with CentralPark at the middle. The City is organized on a gridpattern: avenues run north-south, and streets run east-west. Street numbers descend toward the south(downtown). There are exceptions to these rules, andavenues sometimes end or change their names; forexample, Eighth Avenue becomes Central Park West at59th Street, where Central Park begins. The grid concept,however, is fairly regular throughout Manhattan, north ofGreenwich Village.

Fifth Avenue, which runs along the east side of Central Park, is the dividing line betweenthe East Side and the West Side. Midtown is the area between 34th and 65th Streets.Uptown is above Midtown (to the north) and Downtown is below (to the south).

As mentioned earlier, the basic grid structure of the streets ceases when you reachGreenwich Village (at about 14th Street). The pattern is broken here because this area isthe oldest part of the City, and the streets were developed in the 17th and 18th centuriesin a random fashion (along cow paths, for example). Below the Village, Houston Street(pronounced "How-ston") marks the end of the numbered streets. Below Houston, streetsare named.

Neighborhoods

What most non-New Yorkers fail to realize is that New YorkCity's neighborhoods are constantly in flux. The character ofmany neighborhoods has altered dramatically in recent years.Columbus and Amsterdam Avenues (the Upper West Side)were considered near slums thirty years ago but are nowcharacterized by renovated buildings filled with youngprofessionals. Other areas have undergone similar change.TriBeCa, which traditionally housed light manufacturing, hasbeen transformed into a residential neighborhood. The UpperEast Side has extended its borders to the north — a host ofnew luxury buildings have gone up in the East 90's.

It's important to mention that almost every neighborhood inNew York will afford you an array of services. You will nothave to travel far to find a dry cleaner, a "deli" or full-servicesupermarket, movie theater, health club, or anything else youmight consider. It's also important to be aware that Manhattanprices are somewhat consistent regardless of neighborhood.

Upper East Side

The Upper East Side is home to many ofNew York's best co-ops and condos andcovers the area of the City north of 59thStreet and east of Fifth Avenue. Theapartment buildings that line Fifth and ParkAvenues house some of the mostexpensive properties in the City. This is awonderful family area; however, it is still acomfortable place to live for many singlesand young professionals. One will findmany elegant shops and boutiques,excellent private and public schools,access to Central Park as well asmuseums such as The Metropolitan, TheGuggenheim, The Frick, and The Whitney.Within the boundaries of the Upper EastSide are areas such as Carnegie Hill, EastEnd Avenue, and Yorkville. It is a safe,popular and predictable area in which tolive.

Midtown East

On the East Side of Manhattan in theMidtown area (east of Fifth Avenue in the40's and 50's) are neighborhoods such asSutton Place and Beekman Place. This ishome to the United Nations (42nd Streetand the East River) and to manyconsulates. Many companies areheadquartered in the Midtown area fromFifth Avenue to Third Avenue, and as aresult these neighborhoods become greatfor walking to work.

Murray Hill

Murray Hill, on the border of the east side of Midtown,is one of the areas which is providing a viableopportunity for people to live within walking distanceof their jobs. Murray Hill is bound by Fifth Avenue tothe East River, and 29th Street to 42nd Street. Thestreets adjoining Park Avenue are lined withtownhouses and can be quite charming. Murray Hilloffers a wide selection of apartments. There areseveral newer high-rise buildings along First Avenuein the 30's that offer views and amenities such aspools and health clubs. The area around ThirdAvenue and 34th Street has a wide array ofrestaurants, movie theaters, and after-work meetingspots. Murray Hill's central location makes it easilyaccessible to most areas in Manhattan.

Gramercy ParkGramercy Park is another East Side neighborhoodand is situated between Park Avenue South andThird Avenue, and 17th and 23rd Streets. Its focalpoint is a private park exclusive to residents ofspecific buildings around the park. The Park'sorientation discourages thru-traffic; therefore, theneighborhood's character is that of a quiet islandsomewhat insulated from the surrounding city. ThePark is bordered by beautiful 19th centurytownhouses, and the neighboring streets have manybrownstones. Available apartments are scarce andquite expensive, if on the Park. Moving slightly awayfrom the Park itself offers more affordable options.

Greenwich Village andEast Village

Greenwich Village, and the West Village, hasbeen widely known as a bohemian communityof artists and writers since the 1920's. Itcontinues today to be a popular and activeplace to live. New York University lies at itscenter, at the lower end of Fifth Avenue (8thStreet), so the entire Village is a popular spotfor young students. The residential streetsremain beautiful, quiet and elegant with manyattractive old brick townhouses. Lower FifthAvenue is bustling and is the home to manybusinesses moving south from Midtown. Giventhe lack of high-rise buildings, the inventory ofapartments is low, and as a result the Villagecan be as expensive as any other area ofManhattan.

The East Village has emerged as an entity of itsown. The areas close to lower Fifth Avenuehave always been popular; however, therevitalization has moved further east. First andSecond Avenues have been transformed withrestaurants, art galleries, and night spots. Theavailable housing consists mainly of walk-upbuildings which are now being refurbished.Conventional high-rise doorman buildings arenot as prevalent in this neighborhood as otherneighborhoods.

Chelsea and Flatiron

Chelsea is located from Sixth Avenue (Avenueof the Americas) to the Hudson River, betweenWest 14th Street and West 29th Street.Chelsea, which is close to the garment center ofManhattan and in the midst of the flower district,has a less secluded character than GramercyPark or Murray Hill. The apartment make-up iscomprised of many walk-up buildings and somelovely brownstones, with loft-type buildings aswell. Chelsea is not home to many high-rises;however, there are some larger buildings onWest 14th and 23rd Streets and on some of theavenues interspersed throughout theneighborhood. In the past several years thearea has undergone a renaissance. Many newstores have opened up along Sixth Avenue, andEighth Avenue is now home to an impressivearray of interesting restaurants and shops andthe Joyce Theater. The very westernmostblocks of Chelsea have also become home tomany noted art galleries.

Soho and Tribeca

From a manufacturing center twenty years ago,SoHo (which stands for South-of- Houston) hasdeveloped into an expensive neighborhood,both for housing and shopping. Theneighborhood's transition was caused largely bya spillover from Greenwich Village, thetraditional center of off-beat living styles in NewYork City. SoHo is also famous as the home ofartists, some of whom moved in long ago whenrents were low and others who have hadfinancial success. There are dozens of wellestablished art galleries, specialty food storesand sophisticated restaurants.

In recent years Tribeca (which stands forTriangle-Below-Canal) began to resembleSoHo. The lofts once used for lightmanufacturing and warehouses have slowlybeen converted into beautiful residentialapartments. There are many high priced,fashionable restaurants and clubs in the area,and although there are not the same number ofvisual arts galleries that marked therenaissance of SoHo, Tribeca certainly has itsshare of avant garde clothing and design shops.In both neighborhoods the housing stock isprimarily expensive lofts, some renovated andsome with only raw space available.

Midtown West /Clinton

Midtown West, or Clinton, is situated aboveChelsea and ends at Columbus Circle, 59thStreet and Broadway. This is an up andcoming residential area which has long beenhome to many theater and danceprofessionals. There are hi-rise condobuildings interspersed with smaller prewarbuildings and loft spaces. Midtown West isthe home of Times Square and the Broadwaytheater district.

Battery Park City

Battery Park City is a mixed residential andcommercial neighborhood within easywalking distance of the entire Downtownbusiness district. The housing which is new ispart of a carefully planned and designeddevelopment built as a result of cooperationbetween the State and the City Governmentsand private developers. Battery Park City is asmall city within the city with shops,restaurants, and even a marina. Because ofits location, views of the New York Harborand Downtown skyline can be spectacular.This is an ideal location for those wishing towalk to work on Wall Street.

The West Side and

The Upper West SideThe "West Side" begins at Columbus Circle(59th Street and Broadway) and extendsnorth to 110th Street and beyond.

In the mid 1960's the construction of LincolnCenter, which houses the MetropolitanOpera, the New York City Ballet and the NewYork Philharmonic, sparked the revitalizationof the Upper West Side from a white collarneighborhood to the cultural hub of the citythat it is today. Lincoln Center and the large,new residential buildings surrounding itconstitute the centerpiece of the West Side. Itis from this well established base that therevitalization of the Upper West Side (from72nd Street north) has taken off.

The area comprises a diverse population.The West Side has become a desirablelocation for young professionals seekingmodern high rise buildings and charmingbrownstones, as well as families who requirethe type of space that the pre-war buildingsalong West End Avenue, Riverside Drive andCentral Park West provide. Central ParkWest has become the rival of Fifth Avenue forluxury and views. One will find excellentprivate schools, access to Central Park andRiverside Park, high style shops, boutiques,specialty food shops, restaurants and culturalinstitutions such as the Museum of NaturalHistory, The New York Historical Society andThe Manhattan Children's Museum.

The housing stock has everything: pre-warluxury buildings, brownstones, walk-ups andnew, large, luxury condominium buildings.

Harlem

The area of Manhattan known asHarlem, starting at 96th on the Eastsideand 110th Street on the Westside, has alarge stock of 19th century brownstoneswith great, original architectural detailsfrom the 1880's. Many neighborhoodsare undergoing renovation as peoplelook to Harlem as a new frontier for moreaffordable housing. Some of the keyHarlem neighborhoods are the famousStrivers' Row from West 138th to West139th Street with beautiful brownstones,Mount Morris Park from 120th to 125thStreet, Hamilton Heights from West145th to West 155th Street, and FifthAvenue from 125th to 132nd Street.Prices are generally lower than otherManhattan areas and there is anexcellent subway and bus transportationsystem.

Buying In Manhattan

We've tried to think of the easiest way to guide a prospective buyer through themaze of finding an apartment in New York City. We hope that the following will beof help.

The rules are different in New York City! Some of the information contained heremay seem cumbersome; however, we can guarantee that if you do your homework,the process will flow much more smoothly. Our job at Prudential Douglas Elliman isto help you determine which type of apartment is suitable for you, to assist inneighborhood selection, to educate you regarding real estate prices, and to selectan agent best matched to your needs and budget.

Cooperatives and Condominiums

New York is a city comprised mainly of cooperative and condominium apartmentswith a smaller selection of private homes which we call townhouses orbrownstones. Most important is understanding the differences between the twotypes of apartments you will find in Manhattan.

What is a Cooperative (Co-op) ?

Cooperatives are not a new concept, although they seem to be a type of ownershipthat is more common in New York City than elsewhere in the United States. In NewYork City, 85% of our apartments available for purchase are in cooperativebuildings, while 15% are in condominiums. This means two very simple things topotential buyers in New York City:

1. There is more inventory to choose from if the buyer includes co-ops into the mixof properties

2. Prices are, in general, more attractive for cooperatives — simple supply anddemand.

Cooperatives and Condominiums

Cooperatives are owned by an apartment corporation. Individual tenants do notactually "own" their apartments as they would in the case of "real" property. Oneowns "shares" in the corporation which entitles them to a long-term "proprietarylease." The corporation pays the total amount of the building's mortgage(importantly, a cooperative may have an underlying mortgage on the entire building,whereas a condominium must be owned outright), real estate taxes, employeesalaries, and other expenses for the upkeep of the building. The tenant-owner, inturn, pays a share of these expenses as determined by the number of shares thetenant owns in the corporation. Share amounts are dictated by apartment size andfloor level.

The considerations when buying a cooperative are:

1. The tenant-owners have the right to "approve" or "disapprove" of any potentialowner. The Board of Directors, which is elected by all of the tenant-owners of theco-op, interviews all prospective owners. They have the responsibility of protectingthe interests of their fellow tenant-owners by selecting well-qualified candidates.

2. The quality of services and the security of the building are kept at high standards.

3. Portions of the monthly maintenance are tax deductible. Each building has itsown tax structure, but all co-ops offer a tax advantage. Shareholders can deducttheir portion of the building's real estate taxes, as well as the interest on thebuilding's mortgage.

4. The amount of money that may be financed is determined by each cooperative.Some buildings require substantial down payments. Generally speaking, inManhattan prospective purchasers should be prepared to "put down" at least 20 to25% of the purchase price. Importantly, this could be higher in some buildings.

5. Subleasing a co-op must be approved by the Board of Directors of thecooperative. Each corporation has its own rules, and they should be examined if apotential owner intends to sublet.

Cooperatives and Condominiums

With this in mind, it is important to remember that co-ops are the norm here inManhattan, not the exception. However, before beginning a search for acooperative apartment, think about the financing limitations and the application andinterview process.

What is a condominium ?

While condominiums are quite common throughout the country, they are a rathernew concept for New York City. A condominium apartment in Manhattan is realproperty. The buyer gets a deed just as though you were buying a house. Since thisis real property, there is a separate tax lot for each apartment. Hence, this meansyou pay your own real estate taxes for your property. An owner will also paycommon charges on a monthly basis. Common charges are similar to maintenancein a cooperative. However, they will not include real estate taxes since these arepaid separately, nor will it include the building's mortgage and interest given that acondominium, by law, cannot have an underlying mortgage.

Condominiums are attractive for a variety of reasons:

1. Financing the purchase of a condominium apartment is much more flexible thanin a cooperative. Generally, a buyer can finance up to 90% of the purchase price.

2. While there is an application process, this is not as formal as in a cooperative.The likelihood of rejection is minimal.

3. There is greater flexibility in sub-leasing your apartment. This makescondominiums the choice for investment property.

4. They are the ideal choice for non-U.S. citizens or for those with their assets heldoutside of the United States given that co-ops are unlikely to approve a buyerwhose funds are not in the U.S.

Given that there are fewer condominiums than cooperatives and that they are"easier" to purchase, they are generally more expensive than co-ops. Additionally,monthly combined common charges and real estate taxes in a condo are typicallyless than a co-op's monthly maintenance charges, again resulting in higherpurchase prices.

What is the Purchase Process?

The steps to purchasing a co-op or a condominium in Manhattan are very similar.Let us assume that you have found the property on which you wish to place an offerand that you have spoken to a bank or mortgage broker (if financing) to determine acomfortable and qualifiable price level.

1. Offers are made orally in New York City. When you have found the rightproperty, a bid or offer will be placed through your agent. They will convey youroffer to either the seller's agent or to the seller directly.

2. The seller may "counter" your offer. This will begin a negotiation process that willeventually lead to a "meeting of the minds," at which point price, terms, and closingdate have been agreed upon.

3. Contact a real estate attorney familiar with real estate in our area to representyou. The seller's attorney will begin preparation of a contract of sale, and duringthat time your attorney will begin to examine the financial condition of the building inwhich you wish to purchase.

4. After your lawyer concludes that the financial condition is satisfactory, that theby-laws of the building are acceptable to you, and that the contract of sale is alsoacceptable, your attorney will allow you to sign the contract. At that time you willusually be required to present a deposit of 10% of the purchase price. The contractwill then be forwarded for signature by the seller with the deposit. This money willbe held in the seller's attorney's escrow account until closing. It is important to notethat until all parties have signed the contract, and it has been delivered, the sellercan still entertain and accept other offers.

What is the Purchase Process?

5. If financing, you should move forward with your loan application.

6. You will, by now, have received from your real estate agent the boardrequirements and application materials. The application materials can be similar fora cooperative and condominium. However, the actual process is quite different. Youwill work to complete all of the required materials which typically include: anapplication, a financial statement signed by a CPA, all requisite support for yourfinancial statement, three years of tax returns, bank statements, letters of personaland financial reference, letters of professional reference, the contract of sale, bankdocuments (if financing) indicating that your loan is in place, etc.

7. When your "package" is complete, it will be reviewed by an Prudential DouglasElliman Manager, and then, assuming it is accurate, it will be forwarded to themanaging agent for review. Upon determination that it is in order and that creditchecks were acceptable, it will be forwarded to the Board of Directors. Noapplications will be accepted by a Managing Agent unless they are complete.

8. In the case of a cooperative, if your application meets initial approval, you will beinvited to be interviewed by the Board or by an interviewing committee. Please takethis meeting seriously. It should be treated as a business meeting.

9. After approval by the Board, you are ready to begin planning for a closing!

In the case of a condominium, there is generally no formal interview. Yourapplication will be reviewed, and if all required materials are included and in order,an approval is typically granted.

The entire process can move quickly in a condominium, and assuming a loan canbe secured in a timely fashion, one can move from contract to closing in about 60days. However, the cooperative process is more involved, and 60 to 90 plus days isnot unusual.

Closing Costs

The following guide will give you general closing costs associated with thepurchase or sale of a cooperative or condominium. Please note that these areestimates and that potential buyers and sellers should consult their real estateattorney or financial advisor for specifics. Importantly, we do not represent thatthese are the entirety of potential costs, but are only to be used as a guide.

Typical Estimated Closing Costs: Cooperative Apartments

FOR THE SELLER

Broker: Typically 6%Own Attorney: Consult your attorneyCo-op Attorney: $450.00+Flip Tax: 1% to 3% of Price (if applicable)Stock Transfer Tax: $0.05 per shareMove-out Deposit: One time fee of $500.00+NYC Transfer Tax: 1% of price up to $500,000.00; or, 1.425% of price if$500,000.00 and over.NY State Transfer Tax: $4.00 per $1,000.00 of pricePayoff Fee to Title Closer: $250 - $500UCC-3 Filing Fee: $100.00

FOR THE PURCHASER

Own Attorney: Consult your attorneyBank Fees: $350 - $750Application Fee: $350.00Processing Fee: $280Appraisal Fee: $300-$1,500 (depending on sales price)Credit Report Fee: $9.80 single/$14.60 jointBank Attorney: $750Lien Search: $250-$350UCC-1 Filing Fee: $100Mansion Tax: 1% of entire purchase price where price is$1,000,000 or more.

ADDITIONAL REAL ESTATE EXPENSES

Miscellaneous Co-op Charges: Vary by buildingRecognition Agreement Fee: $200+Maintenance Adjustment: Pro-rated for the month of closingShort Term Interest: Equal to interest for balance of monthin which you close.

Closing Costs

Typical Estimated Closing Costs: Condominium Apartments

FOR THE SELLER

Broker: Typically 6%Own Attorney: Consult your attorneyProcessing Fee: $450+NYC Transfer Tax: 1% of price up to $500,000; or1.425% of price if $500,000 and over.NY State Transfer Tax: $4 per $1,000 of priceMiscellaneous Title Fees: $200-$500Pick-up/Payoff Fee to Title Closer: $100-$300Miscellaneous Condominium Charges: Vary by buildingNote: For condominiums in new developments, thepurchaser will pay costs normally paid by the seller.These include seller attorney fees as well as New YorkState and New York City Transfer Taxes.

FOR THE PURCHASER

MORTGAGE CLOSING COSTS

Buyer’s Attorney: Consult your attorneyBank Fees: $350-$750Application Fee: $350Appraisal Fee: $300-$1,500 (depending on sales price)Credit Report Fee: $9.80 single/$14.60 jointBank Attorney: $750Tax Escrows: 2 to 6 monthsRecording Fees: $200-$500Mortgage Tax: 1.80% of amount of mortgage on loans under $500,000; or 1.925%of amount of mortgage on loans of $500,000 and overFee Title Insurance: Approx. $400 per $100,000 of sales priceMortgage Title Insurance: Approx. $200 per $100,000 of mortgage amountMunicipal Search: $350Mansion Tax: 1% of entire purchase where price is $1,000,000 or more.

ADDITIONAL REAL ESTATE EXPENSES

Common Charge Adjustment: Pro-rated for the month of closingReal Estate Tax Adjustment: Pro-rated depending on when the tax is collectedMiscellaneous Condominium Charges: Vary by buildingShort Term Interest: Equal to interest for balance of month in which you close

Renting in Manhattan

We've tried to think of the easiest way to guide a prospective renterthrough the process of finding an apartment in New York City. We hopethat the following will provide you with a step-by-step, easy to followoutline of the entire process of renting in New York City. The rules aredifferent in New York City! The items which we categorize as "necessary"in this guide are crucial. It may seem cumbersome; however, we canguarantee that if you do your homework, the process will flow muchmore smoothly.

Assume that there are no exceptions to the items on these lists.

1. Speak to your Prudential Douglas Elliman rental agent, or if

relocating, call Prudential Douglas Elliman's Relocation Division at (888)891-6683 (toll free) for counseling and to determine when to come toNew York to begin your search. At that time, schedule your appointment.Your needs will be discussed, questions will be answered about theprocess, and you will be assigned to an agent best matched to yourneeds and budget.

2. Organize and prepare the necessary information to bring with you,

including:• Letter of employment and salary verification (include start date if notyet employed)• Bank account numbers (checking and savings), credit card numbers• Names, addresses and phone numbers of previous landlords• Names, addresses and phone numbers of accountant and attorney, ifapplicable• Names, addresses and phone numbers of personal and businessreferences• Tax returns• Pay stubs• Expected bonus (verification from employer)• Additional sources of income with verification• Personal identification with photograph — driver's license or passport

Renting in Manhattan

3. If relocating, prepare the necessary funds before coming to New York. Landlordswill not accept personal or out-of-state checks. They require certified funds. Anyonerenting or relocating must:• Try to establish a New York bank account before you begin your search. If this isnot possible, bring the necessary funds with you.• Bring enough traveler's checks to cover the cost of two (2) month's rent (whichmust be converted into CERTIFIED CHECKS). This comprises the first month's rentand one (1) month's security.• Bring funds to cover the broker's fees if your company is not paying the fee.Brokerage fees are paid by you, the tenant, in New York City. These fees are dueupon signing of the lease. However, if your employer is paying the real estatecommission, they will be billed directly.• Bring funds to cover a Credit Check: $25 to $50, which can be paid by personalcheck.• Bring funds to cover possible move-in/move-out fees (See Co-op/Condo FundsNeeded).

4. The day of your appointment you will meet with the agent who will be workingwith you. Then you will be taken to each apartment that the agent has scheduledfor you to see.

5. When you have made your apartment selection, you will be asked to fill out arental application and one or more miscellaneous documents. Your agent willnegotiate price and lease terms for you. Upon acceptance, a credit report will bedone, and your references will be checked.

6. Leases will be signed and checks presented.

Important Financial Considerations

AFFORDABILITY

As a guideline, you can expect to pay 25% of your gross annual salary for rent.

FINANCIAL ELIGIBILITY

To qualify for tenancy, most landlords require that you annually earn 40 to 50 timesthe amount of the monthly rent. Remember to take into consideration outstandingloans and liquid assets. Landlords are rigid in New York City, and cooperativebuildings can be even more demanding.

LEASE GUARANTORS

If your salary level and total financial picture does not meet the landlord'srequirements, you will need a co-signor, or guarantor, to guarantee the lease.Landlords prefer a family member who lives and owns property in New York, NewJersey or Connecticut. The guarantor must earn ample income. Extensive financialdocumentation may be required and paperwork cumbersome. Prepare yourpotential guarantor for this possibility in advance. Employers will seldom guaranteeon behalf of employees.

INTERNATIONALS

If you pay taxes outside of the United States, or if you have a housing allowancefrom your employer, your eligibility is evaluated differently. Discuss these areas withyour company's relocation department and with your agent.

Types of Buildings to Choose From

In New York City there are three types or categories of buildings in which you canrent: a rental building, a cooperative, and a condominium. Each of these types ofproperties have their own rules and regulations. It is important to understand thedistinction between them as this will influence the timing and parameters of yoursearch for a home. Our agents will work closely with you to determine which type ofaccommodation is the perfect fit for you and your lifestyle.

RENTAL BUILDINGS

Definition: The entire building is owned by a landlord, and all of the apartments areavailable for lease. None would ever be available for sale.

A rent stabilized rental building is subject to guidelines for yearly rental increases.Rent stabilization was established in the late 1960's in response to the criticalhousing shortages and low vacancy rates in New York City. Rent stabilization setslimits on the amount that owners can raise the rent for vacant apartments orrenewals of existing leases. The guidelines for yearly increases are set in July andbecome effective every October. As a tenant in a rent stabilized building one hasthe right to renew the lease indefinitely and the right to sublease the apartment withthe Landlord's permission, subject to obeying all the terms of the lease.

A non-stabilized rental building is not subject to any specific guidelines. The rentlevel is based on a free market system subject to typical supply and demandinfluences. The terms of the lease are established by the landlords' specificationsand requirements. Options for renewal may be included in the lease.

Renting in Manhattan

Types of Leases

Rent Stabilized Lease or Non-Stabilized Lease

Type/Style of Housing

Hi-Rise Luxury Buildings, Pre-War Buildings, Elevator Buildings, Brownstones,Walk-ups. Rental buildings can be virtually any type of building found in New YorkCity.

Approval Process

1 to 7 business days

When to Begin Your Search

Not more than 4 weeks before you would like the date of the lease to begin.Apartments are not vacant for long in New York City, so the "window" for viewing isa small one. If you begin your search too soon, none of the apartments you saw willbe available when you're actually ready to sign a lease.

Funds Needed

First month's rent; one (1) month's rent for a security deposit (which is refundedupon vacating the apartment, assuming that the apartment is returned to thelandlord in the same condition in which you received it, and that the terms of thelease have not been violated); and funds for a credit check to be conducted. Thebrokerage commission is due upon lease signing. (If company is not being billedseparately.)

Cooperative Building (CO-OP)

Definition: A cooperative (also known as a co-op) is a building which is owned by acorporation comprised of the tenant shareholders of the building. Each tenantshareholder owns a number of shares in the corporation associated with his or herapartment (the number of shares depends on the apartment size and floor wherethe apartment is located) rather than owning the apartment itself. The tenantshareholder has the right to occupy the apartment as his or her home by holding aproprietary lease to that apartment.

Importantly, in co-ops you are subletting from an individual who in turn becomesyour landlord. Rental prices are established by supply and demand and, as such,can vary widely. The building is subject to rules and regulations set forth in the By-Laws of the corporation. An owner of an apartment in a co-op must get permissionfrom the Board of Directors of the co-op to rent the apartment. When permission isgranted, the lease is subject to any restrictions or qualifications placed onsubleasing by the Board of Directors of the cooperative.

Types of Lease

A co-op Sublease Agreement is the type of lease issued. The lease term is usuallyfor one year with the option to renew based upon Board approval. In most co-opsowners are not allowed to rent for more than a two year period.

Type/Style of Housing

Pre-Wars, Post-Wars, Brownstones or Townhouses, Luxury Hi-rises, Lofts

Cooperative Building (CO-OP)

Approval Process

The approval process can take anywhere from 4 to 6 weeks. A "board package"must be submitted to the Managing Agent of the cooperative for review by theBoard of Directors. The elements of the board package differ from building tobuilding; however, in almost all cases extensive financial information is required: taxreturns, financial statements with all verification, personal and business references,etc. In most co-ops the board requires a meeting with the prospective tenant.Importantly, in a cooperative there is the risk that a prospective tenant can bedenied acceptance by the co-op's Board of Directors.

When to Begin Your Search

Since approval for tenancy is a lengthy process, you should begin your search atleast 6 weeks before you would like the lease to begin.

Funds Needed

Fees associated with co-op leasing can range from $200.00 to as much as$1,000.00. The fees include the application processing fee, credit check, and move-in and move-out fees which are usually refundable. The first month's rent and onemonth security are due as well. As always, the brokerage fee is payable upon leasesigning. (If company is not being billed separately.)

Condominium (CONDO)

Definition: A condominium or Condo is a building in which the apartment isclassified as "real property" and is owned by an individual. You, the tenant, leasethe apartment directly from the condo owner. Rents, as in co-ops, can vary widelyas they are determined by supply and demand.

Types of Lease

Condominium Sublease Agreement: Since there are no restrictions concerning howlong an owner is allowed to rent, length of lease can be negotiated.

Type/Style of Housing

Usually Hi-Rise Luxury buildings; very rarely Pre-Wars. Condos are a relatively newphenomena to New York City, and as a result tend to be more recent construction.

Approval Process

An approval process is usually required, but it is not as difficult as the co-opprocess. A board meeting may or may not be required. The length of time forapproval varies from building to building, but it is usually not as long as a co-opapproval process.

When to Begin Your Search

4 to 6 weeks prior to desired lease date.

Funds Needed

The first month's rent; one month rent for a security deposit; application fees; move-in/move-out fees are also necessary, and they can vary. Again, the brokeragecommission is due at lease signing. (Unless your company is being billedseparately.)

Building Terms

Brownstone or Townhouse: 4 to 6 story buildings built in the 1800's through theearly 1900's. These can be single family houses or can have been converted overthe years into multiple apartments. As a single family home, a townhouse orbrownstone offers buyers privacy and the ability to purchase without thecooperative board process. Some apartments in townhouses can have grand livingspaces and, therefore, will be quite expensive. Generally, these buildings affordmore "charm" with features such as gardens, fireplaces, beautiful floors andornamental wood moldings. In almost all cases these buildings will not have adoorman.

Elevator Buildings: This description is usually reserved for a non-doormanbuilding that is six to twenty stories tall. There is usually an intercom securitysystem, and some may have video security. These buildings could fall into the pre-war or the post-war category.

Loft Apartments: Former commercial or Industrial buildings that have beenconverted into apartments. Generally, these are large open spaces with highceilings. They are usually found in Greenwich Village, SoHo, TriBeCa, Chelsea,Flatiron and lower Manhattan and often do not have the services of a doorman.

Luxury Doorman Buildings: These are generally associated with newconstruction or are apartment buildings that were built from the 1980’s throughouthe present. These buildings tend to be condominiums. They are typically twenty toforty or more stories with doorman and concierge services. You may also find manywith health clubs and swimming pools.

Building Terms

Prewar Buildings: Prewar buildings are those built before World War ll. Thesebuildings are usually ten to twenty stories and are not known for views, except ofcourse those along the Park or River. They are recognized for architectural interestwith features such as larger rooms, fireplaces , hardwood floors and higher ceilings.These can be doorman or non-doorman buildings.

Postwar Buildings: These buildings were built between the late 40’s through the1970’s. They are generally hi-rise and are constructed of white , red or brown brick.Most will have doormen. Postwar apartments may actually afford more space thantheir prewar counterparts in studio, one and two bedroom sizes.

Walk-Up Buildings: This is the least expensive type of housing, and the qualitycan vary widely. Usually these are 4 to 5 story buildings with no doorman and noelevator, hence the term "walk-up." They were originally constructed as multi-familyhousing and lack the charm and elegance of traditional brownstones ortownhouses.

Apartment Terms

Familiarize yourself with the following terminology. It's almost all unique to NewYork City. It's also important to know that we speak in "number of rooms," as wellas using the definitions below. A room in Manhattan must be at least 100 squarefeet and have a window...except in the case of a kitchen. Most kitchens areconsidered rooms, unless they are Pullman types, which would be found as part ofthe living room. And we don't count baths as rooms. So, a Three Room Apartmentwould be comprised of a Living Room, a Kitchen and a Bedroom. A Four RoomApartment would have a Living Room, a Kitchen, Two Bedrooms, or One Bedroomand a Dining Room. You'll hear the term Half of a Room, e.g., Three And A HalfRooms. This means that the Living Room has an alcove adjacent to it which is notquite the size of a true room, or in some cases it may mean a foyer large enoughfor dining. Review the list below, and check with your agent for further clarification.

Alcove: An area adjoining the living room space of an apartment. It is generallyless than 100 square feet and, hence, not considered a full room . It can be usedfor dining or an additional sleeping area. Depending upon size, it may actually be“walled off” to create an additional bedroom.

Alcove Studio: A one or two room apartment with a separate alcove (see above)which can be used as a sleeping area.

Classic: The word "classic" is usually followed by a number indicating the numberof rooms in an apartment. It is generally associated with pre-war apartments thatmeet a criteria of room numbers and design for buildings of that period. However, a“classic” can exist in a post war

Convertible or Flex: This is typically an apartment with an alcove adjacent to theliving room that can be used to create another bedroom. By utilizing this "flexible"space, we can "convert" the apartment from a one bedroom to a two bedroom.Hence, a one bedroom with this alcove could be called a Convertible or FlexibleTwo Bedroom.

Apartment Terms

Duplex: In New York this means an apartment

Junior: Again, this is an apartment with an alcove off of the living room which canbe converted into a bedroom or used for dining. A Junior 4, for instance, would be athree room apartment (living room, kitchen and bedroom) which has the potential tobe four rooms by using the alcove space to create an additional room.

Loft Area: This is an additional space created in apartments with very high ceilings.The loft area is constructed above the traditional living area, accessed by astaircase or ladder, and used for extra storage, sleeping or living space (e.g., amezzanine).

Studio: One or two rooms with combined living and sleeping area. If the studio isone room, the kitchen will be of the Pullman variety. If it is two rooms, the kitchenwill be separate.

Prudential Douglas Elliman

Prudential Douglas Elliman is New York City’s largest residential real estate firm,specializing in the sale and rental of apartments and townhouses. Our professionalsales and rental staff numbers more than 800. With eight offices throughout thecity, Prudential Douglas Elliman is easily able to assist you with finding a newhome in any of our city’s neighborhoods. Beyond the island of Manhattan,Prudential Douglas Elliman has offices throughout the suburban New York area.We can help with your search on Long Island with offices in Manhasset, NY; LocustValley, NY and Port Washington/Sands Point,NY. Or, as a member of RELO, theworld’s oldest and largest real estate referral network, let us put you in touch withone of our 1,100 affiliated real estate companies nationwide !

Prudential Douglas Elliman was founded in 1911 and has been synonymous withthe most exacting standards of excellence in the real estate industry. As a fullservice organization, we offer our clients the greatest concentration of experienceand talent in the New York residential real estate market. Service to our clientscontinues to remain our top priority.

The Residential Sales and Rental Divisions of Prudential Douglas Elliman has aunique team of professional agents who specialize in the purchase, sale and rentalof apartments and townhouses throughout Manhattan and the Metropolitan area.These agents are specially qualified to meet the specific needs of property owners,tenants and purchasers. Our listing span the full range of the market and assureour ability to successfully provide a high level of service to the entire community.

Prudential Douglas Elliman’s Relocation and Corporate Services Division is one ofthe City’s most complete. We are capable of assisting with any relocation, nomatter how large or how small. Our professionals are trained and accredited in allaspects of the relocation industry and are here to make the transition to New York asmooth one.

Please feel free to call on us for all of your real estate needs, no matter where theymay be.