New Jersey Rental Guide 2022

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TABLE OF CONTENTS OVERVIEW OF NEW JERSEY .................................................................................................................................. 2 GEOGRAPHY....................................................................................................................................................................... 3 RENTING A PROPERTY................................................................................................................................................ 6 WHAT IS A CREDIT SCORE?.....................................................................................................................................11 MOVING IN......................................................................................................................................................................... 14 SHOULD I USE A BROKER?.....................................................................................................................................16 FALSE ADVERTISING IN REAL ESTATE .......................................................................................................... 18

The information contained in this publication is provided by Station Cities and its affiliated entities (the “Company”) as a service to relocating employees and should be used for general informational purposes only. While the Company undertakes measures to ensure the accuracy and completeness of the information in this publication, the Company cannot assure its accuracy or completeness and does not commit that it maintains updated information. This publication, in its entirety, is the sole copyrighted property of the Company and may not be modified, reproduced, sold, or otherwise distributed without the express written consent of the Company.

Rental Guide: New Jersey

OVERVIEW OF NEW JERSEY

“The Garden State” New Jersey was originally inhabited by Native Americans for more than 2,800 years, but in the 17 th century, the Dutch and Swedes made the first European settlements in the state. The English later seized control of the region, naming it the Province of New Jersey. One of the original Thirteen Colonies that broke away from Britain, New Jersey was the location of many historically significant battles and events during the American Revolution. It officially became a state in 1787. New Jersey’s geographic location at the center of the Northeast megalopolis fueled its rapid growth through the process of suburbanization in the second half of the 20 th century. Today, New Jersey is home to a uniquely diverse population, where communities range from large urban centers close to New York City to small rural towns farther south and west. While New Jersey is the fourth-smallest state by area, it is the 11 th most populous with approximately 9 million residents as of 2017. It is the most densely populated of the 50 states. Suburban Living The northern New Jersey suburbs encompass some of the most coveted property in the nation. These areas prominently feature detached single-family residences, ample green spaces, shopping malls and other such commercial centers within a reasonable commuting distance from the city. The slower pace and lower population density of the suburbs makes for a relaxing escape from New York City’s crowds and excitement. With a short drive or train ride via commuter rail, one may easily enjoy all that the city has to offer at any time. Another advantage to suburban living is the property value. Homes in the suburbs tend to be larger and less expensive than homes in New York City. Additionally, they often include a yard or garden, a garage and other such features. While some towns feature residential sidewalks, few daily needs can be met within walking distance of most homes. As such, owning a car is imperative to living in New Jersey. A Distinctive Market New Jersey real estate is in very high demand, on account of its desirable location close to New York City and the Atlantic Ocean. Housing options are typically very low because of this. The best way to beat the competition and secure a home quickly is to have a solid understanding of how this market works. When securing a property in New Jersey, speed and organization are paramount. The New Jersey real estate market typically works on a first-come, first-served basis; potential renters or buyers who have their documents and finances ready stand the best chance of securing the apartment or home they want. Representation by a brokerage such as Station Cities can greatly expedite your search. An experienced broker has the knowledge and resources to ensure that you see quality properties offered at the best possible prices.

Rental Guide: New Jersey

GEOGRAPHY New Jersey is a state located in the Mid-Atlantic region of the Northeastern United States. It is bordered on the north and east by the state of New York, and to the west, Pennsylvania. The southern portion of the state is a peninsula, surrounded by the Delaware Bay and Delaware River to the south and west, respectively, and the Atlantic Ocean to the east. It only spans 70 miles at its widest and 166 miles in length. It is divided into 21 counties, which contain a total of 566 municipalities. New Jersey has a wide range of landscapes and climate can vary, depending on where you live. The Appalachian Valley and Ridge lies in the northwestern corner of the state and includes the Kittatinny Mountains, while New Jersey’s east coast is comprised of 130 miles of Atlantic coastline. The southern half of the state is mostly coastal plains.

Station Cities services the following counties:

+ Bergen + Hudson

+ Essex + Union + Middlesex + Monmouth + Mercer + Somerset + Hunterdon + Morris + Passaic

Rental Guide: New Jersey

Because New Jersey borders New York City via the Hudson River, many of its north-eastern neighborhoods are convenient places to live for those who work in Manhattan. Popular neighborhoods include: Hackensack Hoboken Jersey City

HACKENSACK

HOBOKEN

JERSEY CITY

Rental Guide: New Jersey

Commuting Many people living in Northern New Jersey who work in New York City choose to commute via the PATH Train System.

*Map of PATH train lines. Map data: 2015 Port Authority of New York & New

PATH Stations by Line

Journal Square – 33 rd Street (via Hoboken)

Newark World Trade Center Newark-Penn Station

Hoboken World Trade Center

Hoboken- 33 rd Street

Journal Square- 33 rd Street

Hoboken

Journal Square Journal Square

Christopher Street

Harrison

Newport

Grove Street

Journal Square

Exchange Place

9 th Street

Newport

World Trade Center

Christopher Street

Grove Street

th Street

Hoboken

Christopher Street

Exchange Place

23 rd Street

9 th Street

World Trade Center

rd Street

14 th Street

9 th Street

23 rd Street 33 rd Street

14 th Street 23 rd Street 33 rd Street

PATH Schedules For an updated schedule for each PATH linez, click here:

Rental Guide: New Jersey

RENTING A PROPERTY

Property Types There are three distinct types of properties which you might find available to rent. Property Type Description Advantages Disadvantages

Lower entry point to multifamily building

•

Single unit within a larger building. Share walls with other units and have community spaces for residents to enjoy. Approval time and difficulty: 1 day to 1 week, usually easy approval, is standard process Also known as condos or townhouses. Often multiple floors and share at least one wall. Approval time and difficulty: 2 to 4 weeks, moderate approval, usually 2- step process Single home built on a single lot with no shared walls and include an attached or detached garage. Approval time and difficulty: 1 day to 1 week, usually easy approval, is standard process

HOA/amenities dues add to monthly costs Smaller living space

•

Amenities

• •

Cheaper homeowner’s insurance

• •

Higher price per square foot

Rental Building/ Multifamily Homes

Application fees may apply ($50.00 - $300.00)

•

Often restrictions on pets, rentals, and certain renovations

•

Ownership type: landlord

•

Similar amenities as Rental building at no additional costs Larger interior space Fees: High-cost application, board and move-in fees ($350.00 – $2,500.00)

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More rental restrictions

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Less shared HOA /amenities cost Offered in more locations from the city to the suburbs Not as spacious as single-family home

•

• •

•

Condo/ Townhomes

•

Ownership type: private owner

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Greater privacy and personal yard Fewer limitations on property use More storage options Application fees may apply ($50.00 - $300.00) May have HOA

•

More maintenance overall Generally higher price Increased insurance, and utilities

•

• • •

•

Responsible for informing the landlord of any damages

•

Single Family Homes

Ownership type: landlord/ private owner

•

Rental Guide: New Jersey

Rental Qualifications To rent an apartment in New Jersey, prospective applicants must meet three specific criteria: 1. A guaranteed annual income that is at least 30 to 40 times the monthly rent (e.g., $3,000.00 per month rent = $90,000.00 to $120,000.00 gross US income) 2. A strong US credit history and score, i.e., 700 or higher (see “What is a Credit Score?”) 3. The ability to show consistent employment over an extended period (e.g., 3+ years) What If I Do Not Meet These Qualifications? The following options may be available for those who cannot meet all the requirements listed above. However, each landlord has different policies on which of these options they will accept. 1. Prove financial stability i.e. 3 (three) months of bank statements 2. Letter of reference from previous landlord 3. Provide a guarantor 4. Purchase an Insurent policy What If I Am Not A US Citizen? The application process for international applicants is slightly more complex than for US citizens. Landlords may be more cautious when accepting international applicants because of the potential for losses; should a tenant choose to leave the US and return to their home country on short notice, a landlord has no means to collect outstanding payment from overseas. To assuage this concern, landlords will not recognize foreign assets and require proof that international applicants are financially qualified (preferably over-qualified) to cover the cost of rent with US holdings. It is strongly recommended that international applicants open a US bank account and transfer sufficient funds (enough to cover six months to one year’s rent) into the account immediately after their arrival. There are additional factors that may improve the odds of securing an apartment as a foreign national. While these criteria are not mandatory, they may further pacify cautious property owners. In the eyes of a landlord, employment with a prominent organization or company may further legitimize a foreign applicant’s credentials, as does any housing allowance or additional guaranteed relocation allowance provided by a company on the applicant’s behalf. The biggest obstacle to overcome is a lack of US credit history; landlords will not accept foreign credit reports. In addition to proof of a stable income with a well-known corporation and assets held in a US bank account as discussed previously, landlords may ask for. These terms will vary by landlord; in extreme cases, landlords may ask for one year’s rent in advance or a six-month security deposit which will be held until the tenant moves out of the apartment. By law in New Jersey, the maximum amount a landlord can require is a month and a half as a security deposit. It is up to you as the applicant to decide whether or not you are comfortable accepting these terms.

Rental Guide: New Jersey

When applying for an apartment, alternate documentation is accepted in lieu of some forms of standard documentation for non-US citizens. These items include: 1. A valid visa that indicates legal alien status 2. A valid passport 3. A Social Security card or proof of application for one

4. Bank statements from a US bank 5. An employment verification letter

Guarantor What is a guarantor? Should the tenant ever fail to pay rent, a guarantor (also called a co- signer) will be legally obligated to make those payments on their behalf. For someone to be eligible as a guarantor, they must go through the same application process as the applicant but will likely be asked to include even more financial documentation. Their annual income must be twice the amount that the applicant must earn, i.e., 80 to 100 times the monthly rent, and they must also have a strong US credit score. Furthermore, most landlords will require the guarantor to reside within the Tri-State area: New Jersey, New York, or Connecticut. This may vary by landlord, as some will accept a guarantor from any US state. If the individual does not meet all of these qualifications, they cannot act as a guarantor for the applicant. In this case, the applicant only has one other option; they can use an institutional guarantor, like Insurent, to assume financial obligation on their behalf. Roommates Renting Together When searching for an apartment with roommates, it is important that everyone has the same knowledge, understanding, and expectations. Before viewing apartments, roommates need to have a frank discussion about their financial circumstances with each other and their broker. Each person should have a clear understanding of their roommate’s credit history, employment situation, and income. Every roommate should be present at each apartment viewing and have all their necessary documentation in hand. In many instances, landlords will allow roommates to combine their respective incomes to meet the financial qualification. If roommates do not collectively qualify, they may also secure a guarantor. There may be multiple people willing to act as guarantors, i.e., parents. However, regardless of the number of guarantors, each one will be responsible for the entire lease and not simply their guarantee’s portion. If only one roommate’s guarantor is on the lease, or there are multiple guarantors on the lease who only want responsibility for their pro rata share, the willing parties may make an outside agreement; they can agree amongst themselves to share the responsibility in equal portions, despite the landlord holding each one of them solely responsible. What Documents Do I Need To Rent A Property? Employer Information • Employer’s contact information • A signed (by HR dept. or supervisor) letter of employment or employment contract on company letterhead. It must contain the following information:

Rental Guide: New Jersey

• Your position • Job start date • Annual salary (including any bonuses) • Any guaranteed funds; i.e., travel, relocation, or housing allowance and the specified amounts • Employer information Bank Information 1. The name and contact information of your bank 2. Bank statements from the last two months reflecting balances large enough to cover rent (account balance should have the equivalent of at least 6 months’ rent) Government Information 1. Tax returns from the last two years (or employer letter documenting income for non- US citizens or new hires) Personal Information 1. The names and contact information of any previous landlords 2. A driver’s license, passport or another form of government-issued photo identification 3. Emergency contact information Funds 1. Money to cover application fee(s): $50.00-$100.00 for Rental Buildings; $250.00- $2,500.00 for Co-ops, Condos, or Homes 2. Required Certified Funds (Bank certified checks or money orders): One month’s rent; One month’s security (additional security may apply for those without a US credit history) Note: Not all banks will issue certified checks. Additional Information 1. (If applicable) The essential information of your guarantor (see “Rental Qualifications”) 2. Personal or business references or reference letters from previous landlords What Is A Lease? A lease is a legally binding contract which denotes that you, as the tenant, agree to rent an apartment from the property owner for a defined period, at a specified price. When Do I Sign My Lease? When you are applying for a rental property, the process of lease-signing is rather straightforward. After you have submitted your application and any supplemental documents, the landlord will take 24 to 72 hours to do a background and credit check on you. This is when the landlord may choose to present you with specific terms for you to rent the property, i.e., additional rent up-front or a larger security deposit. Presuming that your records are in order, and any terms proposed by the landlord are agreeable to both parties,

Rental Guide: New Jersey

you will be told you have been approved to rent. The lease-signing will usually occur in the landlord’s or broker’s office (if you are working with one) within the following 48 hours. When renting a condo or co-op building, the lease is signed when filling out the board package. Once you submit to the board for approval, you and the owner have committed to the agreement; however, you will still have to wait for a notice of final approval from the board to schedule your move-in. This wait can last up to 3 weeks, depending on the building. What Should I Bring to My Lease-Signing? 1. “Bank-certified” checks for rent and security. Bank-certified checks are issued by a teller at a bank, not handwritten by an applicant; therefore, they cannot be refused or “bounce.” Typically, owners will request these funds as two separate checks so they can deposit the rent money into one bank account and the security deposit into another. You will only need “bank-certified” funds for the lease-signing; all subsequent months’ rent can be paid with personal checks, and some owners may even accept rent via credit card, ACH or direct debit. 2. A bank-certified check for brokerage commission. If you have worked with a broker, their commission is only due at the lease-signing, never before. 3. A state or government-issued photo ID. What Will My Lease Look Like? It is important to read through the entire lease before signing it. The landlord will likely try to protect himself against tenant default by using a lease that works in his favor. In other words, the content of the lease may show a clear bias toward the interests of the landlord. This is a “usual and customary” practice in New Jersey, seeing as most courts will rule in favor of the tenant(s) during a lawsuit. Additionally, it is not unusual for the owner to state that the lease will be void if the tenant modifies it in any way. In reality, it is not illegal to modify a lease; it may simply be the landlord’s policy. What Are All These Documents Attached To My Lease? Any supplemental documents that are attached to the lease are known as Riders. Some may be from the owner, like additional policies or rules, and government riders are always included with a lease agreement as well. Riders will always take precedence over a lease. For example, if your lease and a rider attached to your lease contradict one another, the rider is the document the law will follow. If you and the owner have agreed to terms you do not find contained within the lease agreement, be sure they are added as a rider. These terms will not be considered binding unless they are shown in writing. Why Must I Sign a W-9 (W-8 for Non-US Citizens)? By New Jersey state law, the owner of any residential rental property must place your security deposit in an interest-bearing account. At the end of the lease, assuming no damage to the property, these funds will be returned to you with any interest accrued. Although this is typically not a large sum of money, the government dictates that the owner must report any interest via a W-9 tax form (W-8 for those without a Social Security Number).

Rental Guide: New Jersey

When Will My Lease Officially Begin? A lease “begins” on the start date listed on the first page of your lease. The specified date is the first day that you are allowed to occupy the apartment and the first day you start being held accountable for rent. If you choose to move into the apartment after your lease begins, you will still be accountable for the rent from that date regardless of the actual date you begin to occupy the property. As such, it is best to begin your lease on the same day as your move-in day to avoid paying rent for time not spent occupying the apartment. The start date of your lease will vary depending on the landlord. Most owners prefer to start and end all their leases on a particular day, usually the 1 st or 15 th of the month to start with, and the last day of any month to finish. This strategy simplifies the monthly billing and annual renewals for their management team. Although this is common, there are still many owners who will begin a lease on any day of the month and set the end date for exactly 365 days later. If your lease does not begin on the 1 st of the month and end exactly 12 months later, then it is best to discuss what the rent payment will be for the ‘short month’ at the lease signing. All owners will still expect to receive one month’s rent and one month’s security deposit at lease signing. They will then pro-rate the following month’s rent to account for the days you did not live in the apartment the month prior. Some owners may require the tenant to provide a full month’s rent and the pro-rated rent together in advance, while others may only require the full month’s amount in advance. When Do I Receive My Keys? When you receive the apartment keys, it is at the discretion of the landlord. As such, it is best to inquire about this during the lease signing. In many cases, you will receive keys on your move-in day when you first arrive at the apartment building. Alternatively, some owners may give you the keys once you have signed the lease if the apartment is already vacant.

WHAT IS A CREDIT SCORE?

Overview Whenever you borrow money for a purchase, your lender (also known as a creditor) will expect repayment in full by the end of the billing period, or you will have to pay interest on the outstanding balance. Whether you pay in full or make a payment and carry a balance forward, your lender will keep a record of each reimbursement and whether it was paid on time. These records are sent to one of three national credit bureaus, where it is compiled into an individualized credit history and respective credit score. Your credit score is then tied back to your individual Social Security Number. This credit score will fluctuate based on your financial habits; if you fail to make payments towards a debt on time, it will negatively impact your credit score. A low or “bad” credit score can make it more difficult to obtain future credit, secure an apartment, or obtain insurance.

Rental Guide: New Jersey

At the very least, these creditors will require a larger security deposit or higher interest than an applicant with good credit would have to pay. As such, it is important to maintain good financial habits and check your credit score often. Some guidelines for maintaining good credit are as follows: • Pay your bills and loans on time. Never skip payments or pay below the minimum amount due. • Never borrow beyond your credit limit. Always have some credit available to avoid the appearance of financial difficulty. • Review your credit card statements for accuracy and dispute any misinformation with your credit card company. Likewise, request your free annual credit report every year and review it for errors; dispute any misinformation with the credit bureaus. • Open a savings and checking account with emergency funds. In an emergency, use funds from these accounts instead of your credit line to avoid accumulating debt. • Do not apply for too many credit cards; several credit inquiries over a short period may make it appear as though you are in financial turmoil. What is a credit score? A credit score, sometimes referred to as a “FICO credit score,” is a three-digit number (between 300 and 850) that reflects the overall “health” of your credit history. It is a record reflective of any payments you have (or have not) made towards debt. Why do I need a credit score? A credit score is required to obtain a loan or mortgage, an insurance policy, or residential property. In fact, your credit score will be reviewed by utility companies, cell phone carriers and any other service that provides service in advance of monthly payments (most pre-paid services will not require a credit check). Most lenders, insurance providers, and landlords will perform a credit check to determine the level of risk that comes with offering an individual their product or service; in other words, they want evidence that you are reliable and capable of consistently paying your financial obligations. What is a credit check? A credit check is when anyone willing to offer you a product or service requests your credit score from one of the three credit bureaus; some lenders may only request a credit score from one particular credit bureau, while others may request scores from all three. They will consider your credit score along with any other information you have provided them, to determine whether or not to enter an agreement with you. How is my credit score determined? Your credit score is determined by an analysis of your credit history (also called a credit file), which is a record of your credit-based finances – things like your payment history, debts, length of credit history/time on file, types of credit used and recent credit searches. This information is compiled into a credit report which is then used to calculate your credit score.

Rental Guide: New Jersey

What is a “good” credit score? A credit score can be considered “good” or “bad” (in “good health” or “bad health”). A good credit score is reflected by a high number, representing a history of consistent, timely repayment towards debt. Conversely, a bad credit score is reflected by a low number, which represents a history of inconsistent/late payment or default. As higher numbers are preferable to low numbers, the higher your credit score, the less risk you pose to your lender and the more likely you are to be approved. There is no set figure delineating between good and bad credit; most people choose a number between 680 and 720 to delineate between the two; however, this is just a general guideline, as each lender has their own concept of what constitutes good and bad credit. What if I have a bad credit score? The importance of your credit score will vary by lender, landlord, or insurer. A bad credit score does not necessarily mean you will not secure the pending agreement; your other credentials may be enough to convince the other party that you are a safe investment. However, a low credit score may determine the rates or conditions offered by your lender. For example, someone with a credit score of 780 will receive a lower APR (Annual Percentage Rate) on their loan than someone with a credit score of 600. The person with the lower credit score poses a higher risk to the lender; consequently, the lender requires a higher return on their investment and will assign a higher interest rate accordingly. What if I have no credit score? It is better to have no credit at all than to have bad credit. When you have no credit, a lender will use your other credentials (income and assets) to determine the risk involved in providing you with a service or product. However, almost all lenders or property owners will expect a larger than usual deposit to compensate for your lack of credit history. For example, in the case of a mortgage, you can expect to pay higher interest rates; perhaps not as high as someone with bad credit but certainly higher than someone with a good credit score. Who records my credit history? Your creditor provides your personal and financial information to a credit bureau, an organization that aggregates this information into a credit history. There are three national credit bureaus that record all of the country’s credit histories: Equifax, Experian, and TransUnion. Note: These are the only credit bureaus legally required to provide the public free annual credit reports. How long of a credit history do I need to obtain a credit score? To have your credit score determined, you will need a credit history dating back at least six months. Furthermore, your credit history must have been reported to a credit bureau (by your creditor) within six months of your credit score request, and there must be no open disputes (erroneous information) on your credit account(s) at the time of the request.

Rental Guide: New Jersey

Where can I obtain my credit report? Following the implementation of a law called the Fair Credit Reporting Act (FCRA) in 1970, each of the three national credit bureaus must provide, upon request, one free credit report every twelve months. You may obtain your free credit reports by putting a request in with The Annual Credit Report Request Service (their contact information is provided below). Although many other providers advertise free credit reports, this is the only provider certified by the Federal Trade Commission to provide this information to the public. The Annual Credit Report Request Service (http://www.annualcreditreport.com/) P.O. Box 105281, Atlanta, GA 30348-5281 Call: 1-877-322-8228 How do I check my credit score? Your credit score will NOT be included in your free credit report; this must be purchased from each national credit bureau separately. Many private companies advertise credit score determination; however, the terms and conditions of their offers vary greatly between companies and fraudulent advertisements are common. MOVING IN The following procedure typically applies to the moving-out process as well (albeit in reverse). Tenants are advised to inquire about their building’s particular moving-in/out policy for further guidance. Schedule Your Move-in Once the lease-signing is completed, it is important to confirm the move-in policy with the owner before making arrangements with movers. This policy is usually included in the supplemental paperwork accompanying the lease such as welcome packets or house rules (see “Sample Documents: Stabilized Lease”). Many buildings only allow tenants to move in during weekdays within specific hours. Sometimes new tenants are required to schedule their move-in date or reserve the use of an elevator in advance with the building management (this is typical of high-rise buildings). In buildings where there is no timetable for move-ins, as may be the case with non-doorman or walk-up buildings, it is customary to avoid late night hours and very early mornings out of consideration for other tenants. Often, a landlord will request that movers hired by tenants provide a Certificate of Insurance (COI) before the tenant’s move-in date. This certificate verifies that the company has enough insurance coverage to pay for any damages they may cause to the building. Most reliable companies will be certified and accustomed to such requests. These can usually be transferred via email to the landlord/building management at no cost to the tenant. Furthermore, some owners may require a move-in deposit from you, the tenant, to additionally cover any damages that may occur during the moving process. This would be requested at the lease signing or during the submission of a board package (see “Sample Documents: Board Package”).

Rental Guide: New Jersey

It is highly recommended that tenants be present on move-in day to ensure the proper disposal of any leftover moving supplies, that heavy items like furniture are placed in the correct rooms and to account for any damages that might occur (to personal property or otherwise) during the moving process. Schedule A Walk Through And Document It New tenants may be interested in doing a physical walk through of the apartment a few days before their actual move-in date (some landlords will request this). A walk through ensures that any necessary repairs have been completed and allows the landlord/property manager to record pre-existing issues for which the new tenant should not be held responsible. Building management will not perform the walk through themselves; the responsibility falls on you, as the new tenant, to inspect the apartment prior to your move-in date. Even when a walk-through is not requested by the building management, we highly recommend that new tenants perform one themselves and take pictures of any pre-existing issues they find in the apartment. To resolve these issues, and protect yourself from liability, it is advisable to contact building management with the pictures before moving in. Change the Lock An apartment should have two locks on the front door, one in the doorknob itself and another stronger lock above it, referred to as a “deadbolt.” Most homes also have this type of lock system. To err on the side of caution (prior tenants or owners may have passed out copies of the keys), new tenants or owners should have a locksmith change the locks, or at least the deadbolt, before moving in. If moving into an apartment, many leases will require new tenants to obtain their landlord’s approval prior to having the locks changed. The cost of this change will fall on the tenant, not the landlord. Additionally, copies of these keys MUST be given to the doorman (if applicable), superintendent or management office in case you become accidentally locked out of the apartment. Similarly, if the property owner has not been given a new key and needs immediate access to the apartment, for instance, during an emergency, they will break into the apartment, and the cost of repairs will become yours. If changing the locks on a purchased home, consider giving a spare set of keys to a trustworthy neighbor, close-by family member, or friend, in case of an emergency. Set Up Utilities After signing the lease, new rental tenants must contact the utility company and have the gas/electric bill transferred into their name. This is for billing purposes only; utilities will already be available in the apartment before occupancy. Ensure that the billing cycle begins on the same day that your lease starts. A copy of the front page of the lease may be requested by the utility company as proof of tenancy. With international tenants, they may request a copy of your passport and a monetary deposit. If you purchased a home that was previously occupied by the owner, utilities will most likely just be switched into your name. If you purchased a home where the previous owners already moved out, or a foreclosure, there’s a chance you will have to contact the local utility

Rental Guide: New Jersey

companies to get these turned back and in your name. However, many sellers will choose to, or are required to, leave utilities on until new owners take ownership of the home. This is not only beneficial for showing the home (who wants to walk through a house without heat or lights?) but can also be detrimental when it comes to safety concerns, like burst pipes. Virtually all television, phone, and cable providers offer bundled packages where customers can obtain all three services for one monthly fee. To find out which companies service your new home (not all companies provide services to all apartment buildings or home locations) you, or your property manager if you’re renting, can call the service provider directly. As customers are no longer required to have internet or phone service through a major provider, there are many alternatives available that provide these services individually, such as Vonage, Ooma, AppleTV, Sling TV, Hulu, Netflix and more. A real estate broker only earns a commission when they’ve helped you complete a transaction. If you do not secure an apartment or home with your broker’s services, you are not held accountable for paying their brokerage fee. However, there are some benefits to working with a broker. You’ll want to hire a broker if you: • Have a deadline or limited time to search for an apartment or home • Have never purchased a home or rented an apartment before • Want a seasoned professional working on your behalf • Are new to New Jersey The benefits of hiring a broker in these situations greatly outweigh the cost. Speed Brokers work quickly and can get results within strict deadlines. They have experience navigating the application process, intimate knowledge of local neighborhoods and a deep understanding of how to work effectively within the real estate market. Their insight greatly expedites the process of finding an apartment or home; a really good broker may even be able to secure an apartment for renters within 24 hours. Knowledge Brokers will have more resources at their disposal than the average person searching. They have spent years cultivating relationships with landlords and owners who inform them of available properties that may not be posted in rental or for sale listings. Brokers will also find opportunities that best meet their clients’ preferences. No-fee Buildings No-fee buildings may have their own internal staff or a broker who is paid by the landlord and not the renter. A no-fee broker will advertise the apartment, manage the apartment’s SHOULD I USE A BROKER?

Rental Guide: New Jersey

showings and collect applications from potential renters on behalf of the landlord. While there are a number of no-fee buildings in New Jersey, they are most commonly associated with luxury high-rise rentals. Most other apartment types will have a broker representing them, so potential renters should inquire about brokerage fees before working with a broker. Note: You will still have to pay your broker if you are approved to rent in a no-fee building.

Rental Guide: New Jersey

FALSE ADVERTISING IN REAL ESTATE

“If it seems too good to be true, then it probably is.” One telltale sign of possible false advertising in real estate is the omission of exact building numbers traceable to a physical address, for example, “555 Main Street”. Potentially misleading advertisements (ads) may use vague descriptors such as, “located on the Upper- East Side Prime” or “between 10th and 15th Street” to appear credible. Although this particular tactic is easily detected, illegitimate ads are becoming increasingly difficult to discern when searching for real estate, particularly on the internet. Many apartment-seekers will come across ads that boast quality apartments in desirable neighborhoods for bargain prices. These properties are usually scams trying to coax people into disclosing personal information, or they are fabricated as part of a “bait and switch” scheme – an attempt by a brokerage to draw in or “bait” customers through the promotion of non-existent, low-rent apartments. When a potential customer inquires about the apartment advertised, the brokerage will “switch” the offer by inventing a reason that apartment is not available and then offer to show different apartments, with higher price points, for a fee. To avoid such traps, it is in your best interest to hire a professional who will carry out this research on your behalf. When you work with Station Cities, we will do our research to find the best properties that match your criteria. If you see a property on a website that interests you, we recommend that you do not reply to the ad directly. Instead, send your agent a link to the webpage and request to be shown that property. The reasons for this are two-fold. First, your agent will scrutinize the ad for legitimacy, thereby avoiding any of the aforementioned schemes. Secondly, brokers are territorial; if you contact a broker directly through an ad, they will refuse to recognize our company as your representative in the transaction (to avoid sharing brokerage fees). These individuals represent the owner of the property. As your agents, we represent your interests in the property. To ensure that someone knowledgeable is representing your best interests, it is best to allow us to contact these individuals for you.

Rental Guide: New Jersey

Station Cities 105 Grove St., Suite 10-2 Montclair, NJ 07042

Rental Guide: New Jersey

stationcities.com

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