From Pamela Skillings,
Your Guide to Manhattan, NY.
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Interested in renting an apartment in Manhattan, but confused by the different types of buildings available?

In New York City, you can rent an apartment in one of three types of buildings: all rental buildings, co-op buildings, or condo buildings. They each have their own quirks, so it’s important to know the difference.

Rental Buildings

In rental buildings, one landlord owns the entire building. Make sure to ask if your apartment is “stabilized” or simply free-market. When your lease expires in a stabilized apartment, the landlord is limited to relatively small, state-sanctioned rent increases (usually 2%-3%). With a free-market apartment, just as the name implies, a landlord is free to raise the rent as he or she sees fit.

Once you’ve submitted an application, the approval process can last more than a week and will include an income and credit check (for a $30-$50 fee). The security deposit is typically one month’s rent.

Cooperatives (Co-ops)

Here’s one of those “only in New York” things. Co-ops are buildings that are structured as corporations. Instead of “owning” an apartment, people own shares in the building (like the stock market), according to the size and value of the apartment itself.

These buildings can be a nightmare to get into (whether you’re a renter or a buyer). In Manhattan in particular, co-ops are very restrictive regarding the lease length, roommates, pets etc. Don’t be surprised if the approval process takes at a least a month. Also, you’ll need to give very extensive financial and personal info (every deep, dark secret). Steep application and move-in fees are the norm.

Condominiums (Condos)

With condo units, individual people own each apartments. The owners have a lot of leeway to establish the rent and the term of the lease. The approval process can take 1-4 weeks. Expect to pay application fees and move-in fees mandated by the condo board. The security deposit is typically one month’s rent, but can be more. If your credit is spotty, this is your best shot at an apartment. With a good “song and dance,” you might get in.