When choosing or recommending a tenant, landlords and leasing agents in New York look to various data sources to assess tenant risk :
- Credit score +700
At least a good to very good credit score under the FICO models – for example :
670 – 739 = good
740 – 790 = very good
800 – 850 = exceptional
- Stable income
A tenant’s salary should cover monthly rent by 40 times – for example : Monthly rent of $2,500 = $100,000 salary.
Salary typically means base salary, not bonuses – unless bonuses are guaranteed and not performance based.
Often guarantors are sought if income is less than 40 times – requiring 80 times coverage, meaning $200,000.
- Employment duration
In most cases, continuous employment with the same employer for more than a year – with supporting references.
- Verifiable assets
2 / 3 consecutive months of bank statements ; and
1 / 2 years of 1040 Tax Returns
- Housing history
A reference letter from previous landlord(s).
And so taking some examples :
- a tenant with bad or no credit ; or
- an international applicant with no social security number or US tax history,
may be required to pay a security deposit of many months rent.
This can vary from 2 / 3 months’ rent in low risk cases to +6 months’ rent in higher risk cases – landlords and leasing agents will define the ask.
The Deposify Team