It’s June, and your lease is up by July 1. You’ve always lived in a doorman/elevator building, but are now considering a walk-up. You’ve heard some horror stories, but aren’t sure. What are some factors to worry about? Well, have no fear, we at RentHop will dissect the differences and try to assign a monetary value to them. In fact, one of the co-founders recently moved into a walk-up after having spent 4-years in a luxury high-rise – so he’ll be sharing his views.

1) Doorman - How necessary is the doorman? Well, let’s see what a doorman provides:

Pros

• Taking packages – Probably the main value of the doorman. Few of us have the luxury of physically taking packages while at home. And most of us don’t like having our packages sent to work or needing to pick them up at the local post office. Have no fear, the doorman is here. Not only does he take packages, but he also deals with deliveries from Fresh Direct or Poland Springs. Definitely valuable.
• Lost Keys +Lockouts - Ever been locked out and need to ring your neighbors or hire a locksmith? Definitely not fun. Maybe you have an extra set around the office, but having a doorman to let you in is a huge positive, especially for those of us with bad memories.
• Easy Guest Access – You never want to leave your keys under the doormats. I mean, this is NYC after all. A doorman takes care of this. You can leave your guest’s information, and the doorman will let them in – hassle free.
• Helping With Bags – If you’re not a heavy traveler, you might use this service three or four times a year. Not too significant.
• Security - Probably the least important reason to have a doorman. In most apartment units with a locked outer door, there is a very slim chance something bad happens. And to be honest, if some guy shows up with a pistol, there’s not too much a doorman can do.

Cons

• Higher Rent – For a full-time doorman building, you’re looking at an extra $100 – $200 dollars. That’s ~ $1,200 to $2,400 a year. Is that worth it to you?
• Year-End Tips - Aside from the higher rents, you’ll have to deal with the year-end tip. OK, if you’re a complete cheap-skate, you might decide not to tip. There’s nothing the doormen can really do (except give you dirty glares behind your back). However, if you’re a normal New Yorker, depending on the # of doormen and the size of your building, you’ll probably put up $50-100 bucks/doorman or porter.
• Awkwardness - Do you really want someone keeping tabs on your life? Your doorman will know a lot about you, including who comes in and out, your work schedule (and party schedule). Probably not too bad, unless you decided not to leave a tip at all.

How much should you value a doorman? On average, a doorman building will be between $100 – 200 dollars more expensive. This doesn’t include the customary tip on the holidays. Look forward to spending an extra $2,200 for a doorman building.

2) Elevator - Are elevators all they’re cut out to be? So first off, except for the higher costs, there is very little downside to having an elevator. Obviously, an elevator is necessary for most buildings > 5 floors (since only the ultimately athletic will ever want to live on the 6th or 7th floor of a walk-up). For buildings < 5 floors, you might benefit slightly during the move-in or move-out process. If you have a lot of “stuff,” or you’re moving to a large apartment, this might be an issue. Remember, though, that you can always hire movers if you need to. Aside from that, needing to walk 2-3 floors isn’t really as much of an issue as most people think. On the other hand, if you have a baby and need to carry around a carriage, this might be annoying. An elevator might add $50 dollars to your rent – so decide if that’s worth it to you.

Other Things To Worry About

1) Cable/Internet Problems – Newer buildings have better cable/internet infrastructure and wiring. For some walk-ups, you might have haphazardly laid out cables that go onto the roof or into the basement. Routine building maintenance might knock out your cable/internet (which is painful in this day and age).

2) AC - A decent majority of older buildings don’t have built-in ACs. In fact, even some doorman/elevator buildings don’t. This has more to do with the building age than anything else. Not having AC in New York is a killer, especially into the humid summer months. If your building doesn’t have AC, make sure your windows can support one (or if not, you’ll have to get a portable AC unit).

3) Hot Water Issues – Depending on how many people live in the building, your building may have a smaller than normal water boiler/heater. As a result, you might run out of hot water late into the night. Rare this would happen, but beware!

The team at RentHop was recently walking around Chelsea, and managed to snap some great shots of the area. We figured it would be a good segue into an article about the area. After a brief introduction on the boundaries of the neighborhood, we’ll move into its history and what it has to offer to the inhabitants. Finally, we’ll talk about finding an apartment in Chelsea and what the costs are.

Where is it?

Chelsea is located south of Hell’s Kitchen and the Garment District and north of the Meatpacking District. More accurately, the neighborhood has been defined as the area between 14th and 34th street + west of the river. You can always check out the available apartments in Chelsea here. In addition, if you access our map-based apartment search, you can see a great overlay of the region.

History

British Major Thomas Clarke named his Manhattan house Chelsea, after the manor of Chelsea, London. The original “Chelsea” home resided on 23^rd Street, between 9^th and 10^th where it eventually grew from a large garden into a full-fledged residential neighborhood. During the mid 1800s, the newly built Hudson River Railroad industrialized the area. Towards the 1900s, the neighborhood was dominated by the Irish, and housed longshoremen who worked at the warehouses on the nearby piers. The neighborhood drastically changed moving into the 21^st century, and has now become an alternative shopping destination to SoHo. In addition,  there has been an influx from the arts community – and the area houses the Rubin Museum of Art, the Chelsea Art Museum, the Graffiti Research Lab, and the Dance Theatre Workshop.

What the Neighborhood has to Offer

Location, location, location. Chelsea is sandwiched between Hell’s Kitchen to the north and the Meatpacking district to the south. For those who enjoy nightlife – the Meatpacking district is where it’s at. The area is packed with restaurants and nightclubs catering to young professionals and hipsters. It also contains a number of high-end boutiques such as Diane von Furstenberg, Christian Louboutin, and Alexander McQueen. For those who enjoy good eats and affordable food, Hell’s Kitchen has that. The area is flooded with affordable restaurants of all types, including a block full of 99-pizza establishments.

Aside from the surrounding areas, Chelsea itself is not to be scoffed at. It is home to a number of landmark buildings and areas such as Chelsea Piers, Chelsea Market, and Hotel Chelsea. You can shoot rounds of golf at Chelsea Piers (home to a large sports / entertainment complex) or visit Chelsea Market for a number of food vendors such as bakeries, groceries, fish vendors, fruit merchants, and wine sellers. Chelsea has a wide variety of food options, ranging from the cheap/affordable chains (Chipotle) to the high-end Morimoto. Finally, while a little old, there is a great AMC Loews Theatre in the center of Chelsea.

Transportation

Like most areas of Manhattan, you’re always close to a source of public transit. The ACE and 123 lines run through the center of Chelsea, both having stops on 23^rd street (on different avenues). Both lines give you flexibility to reach most of the city, though you might need to switch if you’re headed up to the Upper West Side. Finally, like most parts of Manhattan, taxi’s are around every corner.

Where to Live

While Chelsea generally has a higher percentage of owner units over rental units, you won’t have trouble finding an apartment. There are a number of Luxury high-rises in the area, including the Olivia by Stonehenge, and the Ohm NYC. We also have a number of other landlords like B&L and Jakobson. Definitely check out our apartment selection on RentHop.

The average Manhattan apartment rental commission is about $2,000 per transaction.  Hard as it is to believe, that’s a fairly efficient price.  The barrier to entry to become a licensed real estate agent is 75 hours, $400, and two very easy multiple choice exams.   These low barriers do spawn a lot of awful agents, but exceptional brokers add lots of value and save everyone time. Don’t be fooled into thinking the high commissions are grounded in broker trickery, monopoly pricing, or unsophisticated consumers.  If that was the case, apartment brokers would have disappeared along with stock brokers and travel agents long ago.

How do I get a piece of the action?

The brilliant part about being a Manhattan rental broker is, you don’t need to have any real estate experience or even any knowledge of Manhattan to begin adding value immediately.  There is a big difference between adding value and closing deals (earning commission checks), but let’s ignore that for a moment and explore why anyone can convert their spare time into monetizable assets.

What value do brokers add?

Every day there are thousands of available apartments and thousands of potential renters who want to see them.  Among that vast field of mediocrity is the elusive subset all brokers seek: the great apartments and the qualified, motivated renters.  You can filter away bad renters over the phone.  Sadly, judging an apartment based on the landlord’s descriptions won’t work.  There really is no substitute to personally visiting the apartment and assessing its worth yourself.  Less than half the available apartments are even remotely rentable.  The bad ones linger until the landlord gets a clue and finishes the renovations or drops the price.

Thanks to the sytem of open listings in New York City, any licensed agent can freely visit apartments and build a sizable inventory of great apartments.  The official lingo is called “previewing.”  As long as you preview several times a week, you will continually improve your offerings and the draw that follows from your Craigslist and RentHop postings.  If you find yourself with free time at the office despite your ad campaign, then you haven’t built up a large enough stash of assets.  Go look at more apartments!  When you are only advertising the cream of the crop, you’ll be shocked how quickly you’ll fill your entire calendar with renter appointments (and how much more bang for buck you get per advertisement).

How about closing the deal?

Sadly, far too many agents focus on the deal-closing skill instead of finding decent apartments.  Then we all wonder why brokers get such a horrible reputation!  Here is a better plan.  Focus less on batting average and instead get more at-bats.  Some renters will waste your time.  Some will be extremely obnoxious.  Many simply won’t be interested and you’ll need to move on.  However, if every apartment you show is a diamond in the rough, and you take basic steps in screening your clients, then you will close far more deals than than a typical broker, without the sleazy aftertaste.   It’s much easier to show good apartments and pray they sell themselves than to trick a client into renting an awful apartment. Focus first on finding good apartments before reading books on selling ice to Eskimos.

That’s all there is to it, on a very high-level.  Sadly, apartment brokering is not easy work.  You’ll need lots of organization and determination.  Dealing with clients can be frustrating and managing your listings will seem exhausting at times.  Even previewing is a bit of an art, which we’ll discuss in the future.  At the end of the day, though, it’s not rocket science.  We can boil it down to a rinse and repeat job where the ones who works harder will consistently win.  Forget about the sales tactics and go add value instead.  The rest will come  naturally anyway.

---

This is the third edition of Undercover Broker, written by the founders of RentHop.com.  We obtained our broker licenses to observe and gain insights into the mysterious world of Manhattan apartment brokering.  Previous editions discussed the anatomy of broker bait and switch tactics, how it happens, how to avoid it, and whether it’s truly evil.

I’ve lived in Hell’s Kitchen for about four years, and with the recent NY Times article about the 99-cent pizza shops in my area, I couldn’t help but write a piece about what Hell’s Kitchen has to offer. Prior to Hell’s Kitchen, I had lived in the Financial District. While FiDi had its charms, it was a little too quiet for me personally (and aside from the walk to Chinatown, it didn’t have enough food establishments). Hell’s Kitchen is a little bit different. While you get all the resources of Time Square, you’re not really at the center of the tourist trap.

Hell’s Kitchen

Hell’s Kitchen ranges from roughly 34th Street to 57th Street, between 8th Avenue and the Hudson River. It can be considered a part of the larger Midtown West / Midtown area. While it used to be a center of underworld activities (especially the Irish American Mob), it has now been completely gentrified into a neighborhood with great food, activities, and amazing access to transportation.

Most people think the proximity to Time Square would make the area loud and touristy, but that’s not the case. In fact, the two or three avenue shift is enormous. Once you get past 8th avenue, the area transforms. No more loud billboards or crowded streets. As it turns out, the taller buildings in the area block sight of Time Square from the ground level (though if you lived in one of the high-rises, you can still get a decent glimpse). If you live on one of the side-street off of 9th, you can’t even tell that you’re near Time Square.

First the food

It’s not called Hell’s Kitchen for nothing. The NY Times talks about 99 cent fresh pizza, and 2 Bros Pizza, but 42nd Street & 9th Avenue is actually host to a number of extremely budget (but good) places. These include: 2 Bros Pizza (which actually has everything from fried chicken to broccoli), $0.99 Fresh Pizza (the original 99-cent pizza on the block), Villa Cafe (a newcomer with the best sitting area – inside during the winter), and finally, Papaya Dog (with a slew of budget hot dog/sandwich options).

Moving up 9th Ave, you end up with a slew of sit-down restaurants (all with great prices). A quick search on menupages gives a glimpse of what else the neighborhood has to offer. In fact, just on 9th Ave, I can name 10 Thai places, a few great burger places, and a 24-hour diner (in case you get a late-night craving). Of course, you also have the infamous Restaurant Row on 46th Street.

In between the sit-down restaurants and the 99-cent establishments, the area is also filled with a casual dining options – such as Chipotle and Lenny’s (in fact, on the same block). If you like deserts, there is a Tasty Delite (actually, of my friends, I might be the only one who likes this place), Pinkberry, and Red Mango.

Second, what can I do in the area?

So what’s there to do? Well, in most cases, you’re not partying where you’re sleeping. Chances are, you can always travel to where you really want to go (most people I know aren’t going out 7 nights a week – so there’s no reason to have the action right outside your doorstep). However, you’re still close to a number of select bars in the area.

Apart from that, however, Hell’s Kitchen is right up against the Hudson River. If you like biking, there is a bike trail right along the Westside Highway. Also, believe it or not, Port Authority also has a bowling lane inside. If you lived along the upper border of Hell’s Kitchen (in the 50’s), you’d be within a brisk walk form Columbus Circle / Central Park. Also, the two Time Square movie theaters are right down the street on 42nd (along with a Dave and Busters).

Third, easy transportation

What can I say? You’re at the hub of it all. With Port Authority right around the corner, you’re only a hop away from the 123 (Green), ACE (Blue), NRW (Yellow), 7, and of course – the Shuttle to Grand Central. If you take the bus, the M16 takes you straight to Penn Station. The only pesky area to get to is the Upper East Side (since you have to do a subway transfer), but most places in the city are only 20-30 minutes away from Hell’s Kitchen.

Finally, where do I live?

Anywhere – whether you want the quaint walk-up or the luxury high-rise. Both Brodsky and Stonehenge Management have buildings luxury high-rises in the area (on 9th). Most of the high-rises in Hell’s Kitchen offer fantastic views of Manhattan. Because there are only a few tall building dotting the area, high-up apartments on the west side will get an amazing view of the river. For a luxury high-rise, large studios might run you from ~$2,000 and up. One bedrooms might be in the upper $2 to $3 thousand ranges (this may differ depending on square-footage and concessions – such as 1 month free).

However, you don’t have to live in a Luxury High Rise. There are always vacancies with landlords who own affordable walk-ups. You can get studios from around $1,400 and one (or very small 2-bedrooms) from $2,200. Check out the selection of no-fee apartments on RentHop to get a better sense of pricing.

What Now?

You’ve scoured the city for the perfect apartment, and now you’ve found that gem. Now what? Is the listing price the last word?

We wrote a short piece last April (How to Negotiate a Lower Apartment Rent) about rent negotiations. In general, haggling down the listing price will depend on the landlord or leasing officer. Provided that you are a qualified tenant (40x rent, good credit score, and no history of delinquencies), you usually have some amount of flexibility in negotiations. But how much can you go?

We’ve found that landlords have about a month of flexibility (they’re willing to give up to one month additional free off the rent – though you might not get anything). Of course, this depends a lot on the landlord. Smaller landlords are generally more flexible than large corporations or luxury high-rises. A building’s vacancy rate and the apartment’s time-on-market is also important. The management office is much more likely to negotiate on an apartment that’s been sitting on the market for a few weeks than one that just hit the market. Finally, if the price of the apartment just dropped, there might be less flexibility in getting a lower price. RentHop tracks the price changes and posting date for apartments, so use that as a guide.

Seasonality and timing is also important in getting a lower price. We’ve talked about off-peak apartment hunting a few months back. In general, managers are more flexible during winter time than during the peak summer months. Some of that flexibility is already reflected in “deals” being offered during off-peak times. However, if you’re willing to move in sooner, you definitely have some leeway.

At the end of the day, while getting the perfect price is important, we wouldn’t get stuck on that. If the unit was simply a great bargain, you’re probably not the only one who is interested. Even now, quality rentals move fast (2-3 weeks), so depending on when you see it, it might not be around for too long. As a rule of thumb, ask for $100 off or an additional month free and see how far you get.

July to August 2009 has been exciting for the Manhattan rental market! The amount of transaction volume has been miraculously high. Landlords everywhere are swamped with renters finally biting at some of the greatest deals in 5 years. Rents have fallen to approximately 2006 levels in Manhattan, but the abundance of no-fee / free rent deals takes net effective rents back to 2004 (sales are a very different story).

The next few months will be truly telling. Will landlords seize on the uptick to reduce concessions, or will the off-peak season scare more managers into marketing incentives. So far, the August data supports both theories. Macklowe Properties and Archstone have abruptly scaled back incentives in Midtown West, as Longacre House on 51st and 8th and Archstone Midtown West both ended the 1 Month OP + 1 Month Free deals. Others such as Rockrose has actually increased their incentives, offering a 1.5 month OP and 2 month free at 2 Gold Street (show up without a broker and you might just get a net effective with 3 or 3.5 months off the gross). Some landlords are carefully managing incentives on a case-by-case basis. Stonehenge recently ended the 1 month OP + 1 month free at Ritz Plaza, but in exchange began offering the deal at Olivia, Stonehenge 56, and 20 Park, among others (not surprisingly, all of the Stonehenge 56 units rented quickly afterwards, with the pace at Olivia brisk as well).

We’ve all heard the news about concessions being offered by landlords, but what are they? Most rental deals have been in the form of “months free” at the end of the lease or “OP – the owner pays the broker 1 month of rent (which sometimes eats into months free)”. However, more recently, we’ve seen other incentives being offered, ranging from free gym access to gift cards. We’ve tried to compile a list of Manhattan apartment rental deals for luxury highrises. Definitely check out the FAQ section about how some of the concessions work and how they can impact your bottom line.

After managing a site dedicated to no-fee apartments in New York City for so long,  one of the more frequent visitor questions we receive is, “How do I negotiate with the broker or landlord for a lower rent than the asking price?”  Fortunately, we have seen many useful techniques for rent negotiations from all three points of view; the landlord, the renter, and the broker.  For the first time ever, we are publishing the Rent Hop Guide to Apartment Rent Negotiation! read more »

Rent Hop is happy to welcome AIMCO NYC to our growing list of no-fee landlords in Manhattan. AIMCO NYC buildings largely span the Upper East Side and Upper West Side neighborhoods, including the West 68th and West 69th Street buildings located just steps away from Lincoln Center, Juilliard School, The Museum of Natural History, and Central Park.  AIMCO NYC also has a Chelsea presence, where the 237 9th Avenue building is centrally located on 24th street, only one block from the C, E subway lines (The 1, F/V, R/W, and 6 lines are not far either).

Harlem Offerings

More importantly, AIMCO NYC is one of our first major landlord and property managers with a large collection of Harlem listings!  One good example is the walk-up at 759 Saint Nicholas Ave, which, at the time of this writing, offers a well-priced studio at $1,195 a month walking distance from the A, B, C, and D subway lines.

For the last few months, we’ve been concentrating our efforts on building a large list of Downtown and Midtown apartments, but we now understand that to benefit the largest number of New Yorkers, we’ll need to expand into Harlem and the outer boroughs as well.  Check back frequently as we complete our process of adding more Queens, Harlem, and Brooklyn landlords over the next few weeks.

RentHop.com already provides a comprehensive repository of Manhattan rental listings, complete with the phone number, building address, and website for many hundreds of listings.  Our visitors are welcome to use this information to contact the landlords and schedule viewings without further assistance from our site.

We realize, however, that the logistics of scheduling viewings can sometimes be very stressful.  In fact, a large part of the value an apartment broker provides is to manage all of the moving parts, making something that is very hard a lot easier.  For apartment hunters who seek the full services of a licensed New York real estate agent, we are proud to announce our newest service.

RentHop.com is happy to assist you in contacting the landlords in order to schedule viewings. For no charge, Rent Hop will seamlessly forward leads to our trusted affiliate no-fee brokers with the understanding that our visitors desire only no-fee apartments.  The compensation will be fully paid by participating landlords, resulting in a large savings across the board for everyone.   The landlords fill their vacancies sooner, the licensed agents earn an owner-paid commission, and the renters pay no fee!