Renting an apartment on a freelance income
January 5, 2010 11:05 AM Subscribe
How difficult is it to rent an apartment with inconsistent/freelance income?
I am a writer with a publishing contract and a part-time day job, living in Brooklyn. I've been living in roommate situations for the past two years, but I'm really hoping to move out on my own when my lease is up. The problem is, based on either a pay stub or on my 2009 tax return, my income is too low to rent an apartment.
My credit is fine, and I can afford an apartment -- I have plenty in savings, and I'm expecting a check from my publisher in the near future. But how difficult is it to convince a landlord of that, especially in NYC? I don't think I can get a guarantor. Would they typically accept a bank statement, or paying an extra month of the rent in advance?
I am a writer with a publishing contract and a part-time day job, living in Brooklyn. I've been living in roommate situations for the past two years, but I'm really hoping to move out on my own when my lease is up. The problem is, based on either a pay stub or on my 2009 tax return, my income is too low to rent an apartment.
My credit is fine, and I can afford an apartment -- I have plenty in savings, and I'm expecting a check from my publisher in the near future. But how difficult is it to convince a landlord of that, especially in NYC? I don't think I can get a guarantor. Would they typically accept a bank statement, or paying an extra month of the rent in advance?
I work for myself so I don't have the pay stubs or the tax forms they usually want. I've gotten two apartments by showing them a copy of one of my bank accounts with the account number marked out, a few of my better months pay stubs from clients and offered a really good reference from my former employer (which neither actually called). I've actually gotten these apartments when 3+ other people have applied the same day so its doable. It helps to be a likable and neat-looking person, YMMV.
posted by Bunglegirl at 11:22 AM on January 5, 2010 [1 favorite]
posted by Bunglegirl at 11:22 AM on January 5, 2010 [1 favorite]
When it comes to real estate in NYC the more money you can throw at the problem the better.
You say you have savings. How much?
For example: A landlord will look much differently at a person renting a $1,500 per month place who has $500,000 in savings than someone who has $50,000 in savings.
Beyond that, credit and income are important factors.
The short answer is that it really depends upon your unique financial position. Since you don't really give us details (not that I'd expect you to do so) it's hard to say how a potential landlord would look at you.
The best answer I would think would be to call various landlords up and say "I'm a freelancer. What sort of documentation would you need from me in order to feel comfortable taking me on as a tenant?" If the landlord's response is "screw off" then move on. If the landlord is willing to work with you they'll be pretty up front about it.
posted by dfriedman at 11:37 AM on January 5, 2010
You say you have savings. How much?
For example: A landlord will look much differently at a person renting a $1,500 per month place who has $500,000 in savings than someone who has $50,000 in savings.
Beyond that, credit and income are important factors.
The short answer is that it really depends upon your unique financial position. Since you don't really give us details (not that I'd expect you to do so) it's hard to say how a potential landlord would look at you.
The best answer I would think would be to call various landlords up and say "I'm a freelancer. What sort of documentation would you need from me in order to feel comfortable taking me on as a tenant?" If the landlord's response is "screw off" then move on. If the landlord is willing to work with you they'll be pretty up front about it.
posted by dfriedman at 11:37 AM on January 5, 2010
I'm a freelancer and usually don't have whatever tax form or pay stubs they ask for. What I've always done is show a bank statement with my savings and my invoices from a good month. This has worked with individual landlords and management companies (in the SF Bay Area). I have friends who do the same thing in NYC.
posted by bradbane at 11:39 AM on January 5, 2010
posted by bradbane at 11:39 AM on January 5, 2010
I moved back from europe with a jobless girlfriend and did not make the 40x rent or whatever the formula was. I showed my landlord a copy of my savings (which were not significant, but were maybe 5 month's rent?), a letter of employment (with my meager salary), and had my girlfriend describe her job search and how well it had been going. He agreed, and her receiving a job offer while we were signing the papers didn't hurt either (nor the fact that they only checked my credit, rather than her lurching, pockmarked stain of a credit history).
Where are you looking? Larger rental companies are more likely to have rigid rules, smaller folks are more likely to look you up and down and make a snap judgement. Wear a clean shirt, shave, and smile.
posted by CharlesV42 at 12:52 PM on January 5, 2010
Where are you looking? Larger rental companies are more likely to have rigid rules, smaller folks are more likely to look you up and down and make a snap judgement. Wear a clean shirt, shave, and smile.
posted by CharlesV42 at 12:52 PM on January 5, 2010
Former real estate agent here. Mostly good advice above.
Some landlords care about income and only about income. Those can't be dissuaded. Other landlords care about creditworthiness. Some are inbetween, recognizing that a lot of people argue with their cell phone company and even if people are broke they tend to pay their rent first.
My advice to you if you were a client of mine would be to go on your apartment hunt armed for bear. Bring as much paperwork as you can to prove that you are a good risk to rent an apartment to. I would tell you to bring the following:
--bank statements for six months
--tax returns for the last 3 years
--a letter from the publisher (or a copy of the contract if you have it)
--WRITTEN references from previous landlords. no, they're not going to call (some will, but most don't have the time)
YES, black out account numbers and SSN's (although you'll need to give that for the credit check, and in NYC, don't just run your own unless they tell you they'll take a copy, too many people got creative with photoshop and their credit report).
If you can offer to pay six months in advance it's helpful. Extra security is usually not attractive to a landlord because of the fact that this is the most pro-tenant city in the country and once you move into an apartment, even if you stopped paying rent immediately, it would be six months before your case would get to a judge and eviction is expensive for a landlord. They can't just throw you out because you stopped paying rent. So that's what they think about when they look at you.
Do yourself a favor and tell the real estate agent you call all of this before you go see apartments. They will then steer you away from the landlords who will not even consider you and save you time and energy. If you're only looking at rent-by-owner then just bring it with you (or they'll ask you on the phone, in which case tell them what you said above).
Get all of the paperwork together before you start looking.
Good luck.
posted by micawber at 2:25 PM on January 5, 2010 [1 favorite]
Some landlords care about income and only about income. Those can't be dissuaded. Other landlords care about creditworthiness. Some are inbetween, recognizing that a lot of people argue with their cell phone company and even if people are broke they tend to pay their rent first.
My advice to you if you were a client of mine would be to go on your apartment hunt armed for bear. Bring as much paperwork as you can to prove that you are a good risk to rent an apartment to. I would tell you to bring the following:
--bank statements for six months
--tax returns for the last 3 years
--a letter from the publisher (or a copy of the contract if you have it)
--WRITTEN references from previous landlords. no, they're not going to call (some will, but most don't have the time)
YES, black out account numbers and SSN's (although you'll need to give that for the credit check, and in NYC, don't just run your own unless they tell you they'll take a copy, too many people got creative with photoshop and their credit report).
If you can offer to pay six months in advance it's helpful. Extra security is usually not attractive to a landlord because of the fact that this is the most pro-tenant city in the country and once you move into an apartment, even if you stopped paying rent immediately, it would be six months before your case would get to a judge and eviction is expensive for a landlord. They can't just throw you out because you stopped paying rent. So that's what they think about when they look at you.
Do yourself a favor and tell the real estate agent you call all of this before you go see apartments. They will then steer you away from the landlords who will not even consider you and save you time and energy. If you're only looking at rent-by-owner then just bring it with you (or they'll ask you on the phone, in which case tell them what you said above).
Get all of the paperwork together before you start looking.
Good luck.
posted by micawber at 2:25 PM on January 5, 2010 [1 favorite]
I've rented in NYC as a freelancer before without problems. I think the basic thing is to be willing to show in every way possible that you are going to be a good tenant. Having a good credit record, bank statement, paystub from a recent project, and references are all necessary. Also, to rent in NYC you need to be willing to move fast, so have all this information prepared before you start looking.
If you are dealing with a management company who is too inflexible to consider someone without a 9-5, I wouldn't live there anyway, they are probably miserable to deal with.
posted by designmartini at 3:10 PM on January 5, 2010
If you are dealing with a management company who is too inflexible to consider someone without a 9-5, I wouldn't live there anyway, they are probably miserable to deal with.
posted by designmartini at 3:10 PM on January 5, 2010
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