"I'm in LOVE with an Apartment I Can't Afford. Can I Negotiate?"
In this episode of Money Rehab, Nicole Lapin helps a Brooklyn resident navigate the challenging New York City rental market. As Mike, a freelancer in his thirties, searches for his first solo apartment, he encounters several obstacles: rising rents through dynamic pricing, strict documentation requirements, and difficulties proving his income as a self-employed individual.
Lapin frames these rental market challenges as an opportunity for broader financial growth. She guides Mike through strategies for organizing his finances and documentation, suggesting ways to establish himself professionally through an LLC or S corp. The episode provides insights into both the practical aspects of apartment hunting in a competitive market and the financial preparations needed for major life transitions.
This is a preview of the Shortform summary of the Sep 16, 2025 episode of the Money Rehab with Nicole Lapin
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1-Page Summary
Mike's Living Situation and Motivation For Moving
Mike, a man in his 30s currently living with roommates in Brooklyn, feels it's time for a change. He believes that having his own space would not only provide the privacy he desires but also make him more attractive to potential partners, as living with roommates at his age might appear less mature.
Challenges of the New York City Rental Market
Mike's apartment search reveals the harsh realities of New York City's rental market. Initially setting a budget of $3,500, Mike and his mother were surprised to discover this amount wouldn't secure the spacious 1200-square-foot apartment in downtown Brooklyn that they had envisioned, forcing them to reconsider their expectations.
Mike's Apartment Search and Negotiation Process
During his search, Mike found an apartment listed at $3,600 per month. However, the building's dynamic pricing system increased the rent to $3,800 within ten days. Despite Mike's attempts to negotiate the price and fees, the rental company remained inflexible, leading him to withdraw his application and continue his search elsewhere.
Documentation and Approval Requirements For Renting an Apartment
The rental process presented additional challenges for Mike due to his freelance work history. While he earned enough to cover the rent, his relatively new freelance status and lack of an established relationship with a CPA complicated the application process, as the company required extensive proof of income and a CPA letter.
Nicole's Advice and Guidance to Mike
Nicole Lapin frames Mike's challenges as an opportunity for financial growth. She advises him to prioritize organizing his financial documentation and establishing a professional relationship with a CPA. Rather than waiting for a crisis, Nicole suggests viewing this situation as a wake-up call to create a comprehensive financial strategy, potentially including the establishment of an LLC or S corp.
1-Page Summary
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Counterarguments
- Mike's belief that living alone will make him more attractive to potential partners is subjective and may not hold true for everyone; some individuals may value the community and shared living experiences.
- The idea that a budget of $3,500 is unrealistic for a spacious apartment in downtown Brooklyn could be challenged by suggesting that Mike may need to adjust his expectations or consider different neighborhoods where his budget might stretch further.
- The dynamic pricing model that increased the rent from $3,600 to $3,800 could be criticized for lacking transparency and fairness to renters who are trying to budget for a new home.
- While Mike faced challenges with the rental company's inflexibility, it could be argued that the rental market in NYC is highly competitive, and companies often have little incentive to negotiate.
- The complications due to Mike's freelance work history might be seen as a systemic issue with how freelancers are perceived by landlords and rental companies, rather than a problem with Mike's individual circumstances.
- The requirement for extensive proof of income and a CPA letter could be criticized as being overly burdensome and not accommodating to the growing number of freelance or gig economy workers.
- Nicole Lapin's advice to organize financial documentation and establish a relationship with a CPA is sound, but it could be argued that this advice is not easily actionable for all individuals, especially those who may not have the resources to hire a CPA or form a business entity like an LLC or S corp.
Actionables
- You can simulate a rent negotiation to prepare for the real deal by role-playing with a friend or family member. Practice how you would respond to rent increases or additional fees, and develop a list of counter-offers or compromises you could propose. For example, offer to sign a longer lease in exchange for a lower monthly rate or ask for certain fees to be waived if you agree to move in immediately.
- Create a personal financial dossier to streamline any future rental applications or financial verifications. Include your tax returns, bank statements, pay stubs, and a template of a CPA letter. Keep this dossier updated and ready to present when needed. This way, you'll be able to respond quickly to requests for financial proof and potentially speed up the application process.
- Develop a financial growth plan by setting specific goals, such as increasing your savings by a certain percentage each year or diversifying your income streams. Use budgeting apps to track your progress and adjust your spending habits accordingly. For instance, if you're a freelancer, you might aim to secure a certain number of long-term contracts to provide a more stable income, which would be attractive to potential landlords.
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Mike's Living Situation and Motivation For Moving
Mike, now in his 30s and living with roommates in Brooklyn, feels the time has come for him to find his own space for reasons of privacy and maturity.
Mike Wants to Move Out On His Own
Mike Finds Living With Roommates Unsuitable in His 30s, Seeks Privacy
Mike is finding his current living situation with roommates unsuitable for his age. He expresses that he feels like a "bum" living with three other guys and thinks it's time to move on to something more appropriate for someone in their 30s. Mike is seeking the privacy that comes with having his own place.
Mike Thinks a Personal Space Makes Him More Attractive to Partners, as Living With Roommates Seems Less Mature
Furthermore, Mike believes that having his own apartment in New York City would be a significant milestone. He suggests that living on his own, rather than with roomma ...
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Mike's Living Situation and Motivation For Moving
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Counterarguments
- Living with roommates in one's 30s can be a financially savvy choice, especially in high-cost areas like NYC.
- Privacy can be achieved in shared living situations with clear boundaries and respectful roommates.
- Attractiveness to partners is subjective and can be influenced by factors beyond living arrangements.
- Maturity is not solely determined by living alone; it can be demonstrated in various aspects of life, including how one manages shared living.
- Some potential partners may value financial prudence and the ability to cohabitate peacefully with others.
- The significance of milestones is personal and varies fr ...
Actionables
- You can create a visual roadmap of your journey to independent living by using a bulletin board or digital app to track your progress. Start by identifying the key milestones you need to achieve, such as saving a certain amount of money, finding the right neighborhood, or selecting furniture. Each time you reach a milestone, mark it on your roadmap. This will not only keep you motivated but also visually demonstrate your commitment and progress to potential partners.
- Consider starting a 'Moving Out Fund' where you automatically transfer a small percentage of your income into a dedicated savings account. Treat this like a non-negotiable expense, similar to rent or utilities, to ensure consistent growth of your fund. Over time, this disciplined approach can help you accumulate the necessary funds to secure your own space, signaling financial responsibility and maturity to others.
- Engage in conversa ...
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Challenges of the New York City Rental Market
The New York City rental market poses steep challenges for prospective tenants like Mike seeking affordable living spaces in sought-after areas. The high demand and limited supply of apartments exacerbate these struggles.
Expensive NYC Rental Market Challenges Mike's Apartment Search
Mike, a newcomer to the NYC rental hunt, confronted the reality of the city's competitive and costly housing landscape.
Budget Misjudgment
Initially, Mike presumed that his budget of $3,500 would suffice to find a spacious 1200 square foot apartment in downtown Brooklyn. His expectation reflects a common misjudgment among many who are new to the New York City rental market.
Apartments Exceed Mike's Budget, Forcing Reconsideration
Mike shares his stark realization about the rigorous market conditions, explaining that h ...
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Challenges of the New York City Rental Market
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Counterarguments
- While the text highlights the challenges of the NYC rental market, it's possible that there are still areas within or near the city where Mike's budget could be sufficient, especially if he considers different neighborhoods or compromises on space and amenities.
- The notion that high demand and limited supply are the sole reasons for the struggles in the NYC rental market could be oversimplified, as other factors such as zoning laws, rent control policies, and economic disparities also play significant roles.
- Mike's experience, while reflective of a common misjudgment, might not represent the experiences of all newcomers to the NYC rental market, as some may come better prepared or informed.
- The text implies that $3,500 is not enough for a spacious apartment in downtown Brooklyn, but this may not account for fluctuations in the market or potential deals that could be found through various means such as sublets, rent concessions, or new developments looking to fill units quickly.
- The compet ...
Actionables
- You can expand your search to emerging neighborhoods by using social media groups and local forums to find hidden gems. By joining Facebook groups or forums dedicated to NYC living, you can discover listings in up-and-coming areas that might offer more space for your budget. For example, neighborhoods like Sunset Park in Brooklyn or Astoria in Queens often have active community groups where locals may post about available apartments before they hit the larger market.
- Consider a roommate matching service to afford a larger space in a prime location. Services like Roomi or SpareRoom specialize in connecting people looking for roommates. By pooling resources with a roommate, you can access apartments that would otherwise be out of your budget range, potentially even in sought-after areas like downtown Brooklyn.
- Explore flexible lease options that could lower month ...
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Mike's Apartment Search and Negotiation Process
Mike Coscarelli's search for an apartment leads to a challenging negotiation process with a rental company that remains firm on its pricing.
Mike Eyes Apartment at $3,600/Month
Price Increase After Ten Days
Mike, interested in a specific apartment unit, saw the apartment listed at $3,600 per month—slightly above his price range. He references this in an email to a woman named Katrina while trying to negotiate favorable terms, pointing out the number of available units in the building and their previous rental prices. The apartment he is interested in had been rented for approximately $3,400, a figure he uses in his negotiation strategy. However, less than two weeks after Mike initially saw the apartment, the price increased by $200 a month, from $3,600 to $3,800. The building's pricing system is designed to increase rent incrementally every day.
Mike Negotiated Rental Price and Fees, but Company Wouldn't Budge
During the negotiation stage, Mike attempted to discuss price changes since his first visit. He asked for the application fee to be waived and for building amenities to be included in his offer. The company responded firmly, stating they could not move on the price and reaffi ...
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Mike's Apartment Search and Negotiation Process
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Actionables
- You can create a personalized rent negotiation toolkit by gathering data on average rental prices, vacancy rates, and tenant turnover in your desired area. This information can be used to build a compelling case for why a landlord might consider negotiating. For example, if you find that the average vacancy period in the area is two months, you could argue that it's in the landlord's best interest to accept a slightly lower rent rather than risk the apartment staying empty.
- Develop a backup plan by researching and shortlisting alternative apartments within your budget before entering negotiations. This way, you're prepared to walk away if the terms don't meet your needs, and you won't feel pressured to agree to unfavorable conditions. For instance, have at least three other viable options ready, so you can confidently negotiate knowing you have alternatives.
- Pra ...
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Documentation and Approval Requirements For Renting an Apartment
Renting an apartment can involve various steps and requirements, including the submission of a rental application and financial documents. Nicole Lapin offers advice on the process.
Mike Had to Submit a Rental Application and Financial Documentation Before Price Negotiation
Nicole recommends that individuals should submit a rental application to gain leverage in the negotiation of rent prices.
Company Required Verifiable Income Proof, Challenging For Mike's Freelance History
During the negotiation process, landlords generally require a credit check to verify a potential tenant’s financial stability and ability to afford the apartment. Mike, however, faced challenges due to his freelance work. Although Mike earned enough to cover the rent, his freelance work only began in the previous year, so he lacked extensive tax information to back up his income. To address this, he submitted pay stubs and copies of invoices to prove his income.
Mike's Lack of a CPA Relationship Complicated Apartment Approval
Moreover, Mike learned that it was not advisable to wait until the last minute to find a Certified Public Accountant (CPA ...
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Clarifications
- A Certified Public Accountant (CPA) relationship is significant in the apartment approval process as it can provide official verification of an individual's income. Landlords often require a CPA's note as a reliable confirmation of financial stability when considering potential tenants. Without a formal CPA relationship, providing this documentation can be challenging, potentially complicating the approval process for renting an apartment.
- Freelancers often face challenges in providing income proof due to irregular income streams and limited traditional documentation like W-2 forms. Landlords typically require stable income verification, which can be difficult for freelancers with fluctuating earnings. Freelancers may need to submit alternative documents like pay stubs, invoices, or client contracts to demonstrate their financial stability. Establishing a strong financial history as a freelancer may require creative solutions to meet traditional income verification standards.
- A Certified Public Accountant (CPA) note is sometimes required by landlords or ...
Counterarguments
- While submitting a rental application might provide leverage in some cases, landlords in high-demand areas may have less incentive to negotiate rent prices.
- A credit check is common, but not all landlords require one, especially in private or informal rental arrangements.
- Freelancers often have variable income, but a solid financial history and savings can sometimes offset the need for traditional proof of income.
- Pay stubs and invoices may suffice to prove income, but some landlords might still be hesitant without traditional employment verification.
- A CPA's note is helpful but not universally required for renting an apartment; alternative documentation or references might be ac ...
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Nicole's Advice and Guidance to Mike
Nicole offers strategic advice to Mike, framing his current financial uncertainties not just as a challenge, but as an opportunity for growth and future stability.
Nicole Advised Mike to Prioritize Financial Documentation, Taxes, and a CPA Relationship
Nicole Advised That Good Records and Professional Aid Would Help Mike Secure His Desired Apartment and Manage His Finances
Nicole understands the importance of having one’s financial house in order. She stresses to Mike the need for good records and professional help. A CPA and the setup of financial structures, like an LLC or an S corp, can provide a solid foundation for financial dealings. This is particularly true for securing his desired apartment. Nicole’s advice implies that managing one's financial documentation and taxes with professional assistance is essential for both immediate needs, like housing, and long-term financial health.
Nicole Urged Mike to See This As a Positive Wake-Up Call to Proactively Organize His Finances Rather Than Wait For a Crisis
Nicole suggests that Mike should treat his current situation as a wake-up call. Proper ...
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Nicole's Advice and Guidance to Mike
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Counterarguments
- While Nicole advises establishing a relationship with a CPA, it might not be financially feasible for everyone, and there are alternative resources available such as online accounting services or software that could be more cost-effective.
- Good records are important, but the emphasis on professional aid might overlook the value of personal financial education and the ability to self-manage finances.
- Setting up an LLC or an S corp can provide benefits, but they also come with additional complexities and responsibilities that might not be necessary or advantageous for Mike's specific situation.
- The suggestion to prepay to secure an apartment assumes that Mike has the means to do so, which may not be the case, and it might not be the most financially prudent move if it strains his liquidity.
- Viewing the situation as a wake-up call is a positive spin, but it may not acknowledge the full ...
Actionables
- You can digitize and categorize your financial documents using a smartphone app designed for document management. By taking photos of receipts, invoices, and other financial papers, and then tagging and organizing them within the app, you create a digital archive that's easily searchable and accessible. This can be particularly helpful when you need to share documents with a CPA or during tax season.
- Consider setting up a monthly "financial health day" where you review all your financial statements, set budget goals, and track your progress. This dedicated time helps you stay on top of your finances and can be a regular check-in to ensure you're moving towards your financial objectives. During these sessions, you can also research the benefits of different financial structures, like LLCs or S corps, and decide if they align with your goals.
- Explore the option of using a budgeting tool or s ...
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