Why NYC Renters Underestimate the True Cost of Renting

Renting an apartment in New York City is expensive, but what surprises most renters isn’t the monthly rent — it’s the total cost required to move in. Between deposits, fees, insurance, and building requirements, many renters underestimate how much cash they’ll need until they’re already deep into the process. That’s when deals fall apart, timelines get rushed, and stress spikes.

This guide breaks down the real, upfront costs of renting an apartment in NYC so you can budget accurately, avoid last-minute scrambling, and move forward confidently.

Average Rent in NYC by Borough

Before diving into fees, it helps to understand baseline rent expectations. According to recent NYC market data (December 2025), average rents by borough are approximately:

• Manhattan: $4,939
• Brooklyn: $3,881
• Queens: $3,108
• Bronx: $2,582

These are averages. Actual rents vary significantly by neighborhood, building type, amenities, and time of year.

1. Application Fees

In New York City, application fees are regulated by law. Landlords and management companies may charge up to $20 per applicant, and the fee is non-refundable. This fee typically covers the cost of credit and background checks and is charged per application, not per lease.

While the dollar amount is modest, submitting multiple applications can add up quickly, especially in competitive markets.

RightWay Realtor Tip: In NYC, by law, rental applicants can’t be charged more than $20 for a credit and background check. Higher fees on standard rentals are a red flag. Condos and co-ops are different — they often charge separate board application fees that can be significantly higher.

2. First Month’s Rent and Security Deposit

Once approved, renters should expect to pay the first month’s rent plus a security deposit equal to one month’s rent. Security deposits are capped by law and are generally held in escrow for the duration of the lease. At move-out, they are returned minus any documented damages beyond normal wear and tear.

For most renters, this represents the single largest upfront expense, aside from broker fees.

3. Broker Fees (When They Apply)

Broker fees remain one of the most misunderstood costs in NYC rentals. Depending on the situation, broker fees may range from one month’s rent up to 15% of the annual rent. Fees typically apply when renters hire their own agent for representation or when a landlord does not cover the listing agent’s fee.

While recent legislation has shifted how listing agents are compensated, renters may still encounter broker fees when they choose representation or pursue certain listings.

👉Learn more about working with an agent: Should I Hire a Rental Agent in NYC?

4. Good Faith Deposits

Some landlords or management companies request a good-faith deposit, typically around $1,000, once an offer is accepted. This deposit shows serious intent to proceed and is usually applied toward move-in costs or returned if the deal does not move forward under agreed terms.

RightWay Realtor Tip: Good-faith deposits are often negotiable. Always ask whether the amount can be reduced or removed entirely, especially if you are well-qualified and ready to move quickly.

5. Additional Move-In Costs

Beyond rent and deposits, many renters encounter additional move-in requirements, including:

• Renter’s insurance
• Certificate of Insurance (COI) for movers
• Utility setup costs (electric, gas, internet)
• Building move-in fees or elevator deposits

These costs vary by building and are especially common in elevator buildings and professionally managed properties.

6. Condo and Co-Op Rental Costs

Renting in a condo or co-op often involves additional expenses and longer approval timelines, including:

• Board application fees
• Move-in and move-out deposits
• Building processing fees
• More detailed financial and background review
  

These buildings typically require more liquidity and patience than standard rental buildings.

7. Guarantor Costs (When Applicable)

If you don’t meet the income or credit requirements on your own, a guarantor may be required — and in NYC, that often comes with an added cost.

There are two main options:

• Personal guarantors (friends or family), which typically do not carry a direct fee but must meet strict income and credit standards (often 80× the rent).
• Third-party or corporate guarantors, who charge a fee in exchange for backing your lease.

Third-party guarantor fees in NYC typically range from 25% to 90% of one month’s rent, though higher-risk applications or multi-year guarantees can exceed one month’s rent in total cost. These fees are non-refundable and paid upfront, so they should be factored into your total move-in budget early in the process.

RightWay Realtor Tip: Not all buildings accept third-party guarantors, and some restrict which companies they’ll work with. Confirm guarantor acceptance before applying to avoid wasting time and money.

👉 Related: How Do Guarantors Work in NYC Rentals?

How Much Cash Should You Expect to Have Available?

As a general rule, NYC renters should expect to have three to five times the monthly rent in liquid funds available. This covers rent, deposits, potential broker fees, and move-in requirements without putting financial pressure on the rest of your life.

Final Thought

NYC renters rarely lose apartments because they can’t afford the rent. They fail because they underestimate the true cost of entry. Knowing the numbers up front sharpens your decision-making, strengthens your negotiating position, and allows you to act quickly when the right apartment appears.

If you want help building a realistic rental budget or understanding which costs apply to your specific situation, a short conversation upfront can save weeks of frustration later.

👉 Next step: Book a rental consultation to plan your timing, documents, and strategy.