Searching for a New York City apartment can be a somewhat daunting task, especially when it comes to understanding the various fees associated with renting an apartment. Outside of rental buildings, two other common types of housing options in NYC are cooperative (co-op) and condominium (condo) apartments. In addition to the rent itself, prospective tenants are often required to pay additional fees when applying for these types of rentals. This article aims to shine a light on the differences between co-op and condo rental fees, as well as your typical rental application fees for New York City apartments.
1. Co-op Rental Fees:
Co-op apartments, short for housing cooperatives, are residential buildings owned by a corporation. Instead of owning the unit outright, co-op residents own shares in the corporation that grant them exclusive rights to occupy a particular unit. When renting a co-op apartment in NYC, prospective tenants should be aware of the following fees:
- Co-op Board Application Fee: The co-op board application fee is charged to cover the costs associated with processing the tenant's application and conducting a background and credit check.
- Co-op Board Interview Fee: Once the application is approved, some co-op buildings require prospective tenants to attend an interview with the co-op board.
- Move-in Fee: Many co-op buildings charge a move-in fee, which covers the cost of reserving the building's elevator and ensuring a smooth move-in process for new residents.
- Refundable Security Deposit: Co-op landlords may request a refundable security deposit, typically equal to one or two months' rent, to protect against any potential damages to the unit.
2. Condo Rental Fees:
Condo apartments, short for condominiums, are individual units within a larger building that are privately owned. When renting a condo apartment in NYC, tenants can expect the following fees:
- Condo Application Fee: Similar to the co-op board application fee, the condo application fee covers the cost of processing the tenant's application and conducting background checks.
- Move-in Fee: Condo buildings may also charge a move-in fee to facilitate the move-in process, including elevator reservation and ensuring minimal disruption to other residents.
- Refundable Security Deposit: As with co-op rentals, condo landlords may require a refundable security deposit, generally equivalent to one or two months' rent.
3. Rental Application Fees:
In addition to the specific fees associated with co-op and condo rentals, rental application fees are common for all types of apartments in NYC. These fees cover the costs of screening prospective tenants and can vary from one building or landlord to another. After The Housing Stability and Tenant Protection Act was passed in 2019, rental application fees are now capped at $20 per applicant.
Renting an apartment in New York City comes with various fees, and it's essential for prospective tenants to understand the differences between them. Co-op rentals often involve higher application and interview fees due to the involvement of co-op boards while Condo rentals, on the other hand, generally have lower application fees. Additionally, all rental applicants should be aware of rental application fees, which apply to all types of apartments in NYC. Being knowledgeable about these fees will help you budget appropriately and make informed decisions when searching for your next home.