Roommates In New York City

Most of us start out life as an adult living in a home with at least one roommate. In expensive metropolitan areas, many people live with roommates throughout their lives. It is not uncommon for people to live with roommates between marriages (or relationships), as single parent families and through retirement. Having a roommate can be a very practical solution from a financial perspective, but for people new to the city it can also provide valuable social interaction essential to making a place a home.

Landlords and management companies are aware that having at least one roommate is extremely common. However, they also deal with the reality that the roommate situation is often also quite fluid. When a tenant requires a roommate in order to meet the bills, a roommate leaving can cause financial devastation. Landlords don’t want the headache of having to sue multiple parties for back rent. They also don’t want to be put in a situation where halfway through the lease someone that they accepted after checking references, credit, etc. is replaced by an unknown person. Many landlords simply don’t want to deal with the financial “Russian Roulette” of taking a chance on roommates sticking it out throughout the entire lease.

Some landlords will allow a roommate situation if each roommate could financially qualify for the entire lease on their own. Obviously, for most people, this defeats the purpose of having a roommate. However, this situation is common when two people are living together as a couple without being married. One party may be better off financially and could afford the entire lease on their own. However, having both parties name on the lease can give each person a greater sense of security.

Many landlords will allow roommates, provided that there is a guarantor. Generally, a landlord will require a single guarantor who can cover the entire financial obligation of the lease in the event that the primary tenants are unable to meet the costs. This eliminates the landlord’s problem if there is a change in tenants, when one tenant leaves and a new tenant moves in. No matter what happens, the landlord has one guarantor to proceed against legally if needs be.

There are landlords and management companies who are perfectly happy to accept roommates. Provided that the legally specified occupancy limits are not exceeded (generally no more then two people in a studio, three in a one bedroom and so on), many landlords are happy to combine incomes to meet the minimum financial requirements and accept multiple guarantors. Often times these landlords either deal primarily in student or “young” communities or are management companies that have large, high-rise style buildings with high renter turnover. Generally, the smaller the landlord or the more expensive the unit, the less likely they are to accept a roommate situation.

If you want or need to live with a roommate, it is very important that you have all of the information before you start your search. Having a roommate is not as simple as just selecting a person that you have fun with and then trying to get a place together. This is a yearlong financial commitment and your living situation and your credit can be affected adversely by choosing poorly. It is a good idea to use the same financial criteria that management companies’ use in helping to determine if a potential roommate is right for you.

· Do you know exactly what your potential roommate earns every month?
· Do you know how much they have to contribute towards rent every month?
· Is he or she financially responsible, paying their debts on time?
· Is he or she stable and likely to see the lease start to finish?

No matter how good a friend a potential roommate may be, choosing a friend who can’t keep a job, doesn’t pay their bills on time or is likely to run off with someone else halfway through the lease will be devastating, both to your friendship and to your living and financial well being.

If you are the weak link as a roommate, you will need to either:

· wait to move until you have corrected your financial situation
· find an understanding and trusting roommate who can cover the entire rent
· find a roommate who already has an apartment (therefore eliminating the need for credit checks)
· secure a guarantor

Having a successful roommate relationship requires a great deal of planning and forethought. Many roommates find that creating an agreement separate from the actual lease can help insure that everyone understands the rules of the house, who pays what and the ramifications of breeches.

Rules of the house
Paying rent & bills
What If:
A roommate wants to move-out early
A roommate can no longer pay their share
Roommates break the rules

Above all, it is important that you understand that your landlord will not act as a mediator and if you name is one the lease, you are responsible for the ENTIRE lease payment on the due date. Landlord’s won’t accept partial rent or evict one tenant yet keep another. Choosing a roommate is often one of the first serious tests of maturity for students and young people, especially those new to the financial realities of New York City. Taking this step with a lot of forethought and a clear head is essential to success.

Extract from: The Nouveau Native’s No Fee New York

originally posted July 28, 2006