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Old 12-09-2007, 08:09 PM
 
3 posts, read 22,637 times
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Hi All,
I'm new to the nyc area and I'm apartment hunting. I found a co-op in forest hills, however the person I am inquiring with said there would be a $500 application fee. This seems excessively high for a credit check? What else is included or am I right in assuming it is high? The person I'm dealing with states this is a non-broker apartment. Thanks for any help.

Regards,
John
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Old 12-09-2007, 08:29 PM
 
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It's a coop apartment, which generally means that the coop board requires the owner of the unit to pay a fee ($500 sounds reasonable) in order for the board to let him/her sublet the unit out to someone like you. I think generally owners pass this fee on to the renter, but I guess maybe they don't always. Anyway, it sounds legit to me. So you save a little because you're not paying a broker, but then you have to pay a little because it's a coop. You still come out a bit ahead of having to pay a brokers fee.
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Old 12-09-2007, 08:35 PM
 
Location: Austin, TX
957 posts, read 2,432,141 times
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What exactly is a coop apartment? Are there certain benefits that come with a coop board vs. paying for a broker?
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Old 12-09-2007, 09:39 PM
 
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There is a long answer to your question, but basically a coop is kind of like a condo - meaning that there is an owner (a single owner) of each apartment in the building. However, it's not exactly like a condo because instead of owning actual real estate, the coop owner only owns shares in a corporation - which probably doesn't make sense to you.

It's a bit hard to grasp and there are so many subleties. NY has a huge percentage of coops vs. condos, unlike most other markets which are mostly or all condo.

There is no 'benefit' to going thru a coop board. Basically, if the apartment you are looking to rent is an apartment in a coop building, usually owned by a single small landlord who might only own that unit and not anything else -- then you have to do it the way it's set up. This probably means paying the fee that the OP mentioned.

I would guess that most rentals in this city are not coop apartments but rather they are apartments in rental buildings where the whole entire bldg is owned by one landlord and every unit is being rented out. In that case there is likely to be a broker involved.

In a neighborhood like Forest Hills there may be more coop apartments vs. regular rental apartment being rented as there aren't as many rental buildings in that neighborhood. That's just the way it goes. I'm not sure why.

hope this clears things up. if not, sorry, it's complicated.
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Old 12-09-2007, 09:53 PM
 
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Thanks Henna.
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Old 12-10-2007, 05:44 AM
 
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To elaborate on what a co-op is:

In a condominium, you own the actual apartment.

A co-op is a corporation. You buy shares in the corporation when you agree to purchase an apartment. Those shares entitle you to a proprietary lease for your apartment and a certain number of shares in the corporation. Those shares entitle you to vote in board elections, but you do NOT own your apartment. There is more regulation in a co-op, which is why the NY Times had an article that sub-prime mortages are a non-issue for co-ops, as one's finances are scrutinized even before you go for an interview with the board.
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Old 12-12-2007, 07:56 PM
 
Location: Austin, TX
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Are they just as hard to get into as a reg. apartment?
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Old 12-12-2007, 11:32 PM
 
706 posts, read 2,509,925 times
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Quote:
Originally Posted by hey_john_60657 View Post
Hi All,
I'm new to the nyc area and I'm apartment hunting. I found a co-op in forest hills, however the person I am inquiring with said there would be a $500 application fee. This seems excessively high for a credit check? What else is included or am I right in assuming it is high? The person I'm dealing with states this is a non-broker apartment. Thanks for any help.

Regards,
John
You've gotta be kidding.

$500 Application Fee since when???

Did you tell "this person" that you're new to NYC?

Usually there's a credit check fee of perhaps $60 to $100 dollars maybe.

So, you're not buying the co-op, you're renting from the owner?

Is "this person" who wants $500 from you with your application the owner/landlord?

Does the owner need board approval for you to get the apartment?

Is it simply the apartment owner's decision who lives there?

Does your application outline that you're paying a $500 Application Fee which is REFUNDABLE in the event you don't get the apartment?

(Not that I would even trust that.)

There's no reason anyone should charge you $500 for an application or attempt to pass on any fee of theirs to you.
That sounds SHADY.

Your landlord should ask for a month's rent and a month's security. (Maybe two month's security if you dont' have good credit.)
Non-broker, I suppose, means you dont' have to pay a broker a month's rent (the going rate) for finding the apartment for you, so maybe that's his "tip".

I would NEVER give anyone a $500 application fee. Never happen, cap'n.

Be careful, you could be being scammed or at least taking a chance.

Perhaps you should look up the co-op complex, contact the mangement office and verify the apartment for rent, the owner, and this fee.

If it's not on the up and up, even if you get into an apartment, you may get kicked out shortly after if it hasn't been approved.

Last edited by DonnaReed; 12-12-2007 at 11:58 PM..
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Old 04-10-2010, 09:48 PM
 
2 posts, read 8,550 times
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Quote:
Originally Posted by DonnaReed View Post
You've gotta be kidding.

$500 Application Fee since when???

Did you tell "this person" that you're new to NYC?

Usually there's a credit check fee of perhaps $60 to $100 dollars maybe.

So, you're not buying the co-op, you're renting from the owner?

Is "this person" who wants $500 from you with your application the owner/landlord?

Does the owner need board approval for you to get the apartment?

Is it simply the apartment owner's decision who lives there?

Does your application outline that you're paying a $500 Application Fee which is REFUNDABLE in the event you don't get the apartment?

(Not that I would even trust that.)

There's no reason anyone should charge you $500 for an application or attempt to pass on any fee of theirs to you.
That sounds SHADY.

Your landlord should ask for a month's rent and a month's security. (Maybe two month's security if you dont' have good credit.)
Non-broker, I suppose, means you dont' have to pay a broker a month's rent (the going rate) for finding the apartment for you, so maybe that's his "tip".

I would NEVER give anyone a $500 application fee. Never happen, cap'n.

Be careful, you could be being scammed or at least taking a chance.

Perhaps you should look up the co-op complex, contact the mangement office and verify the apartment for rent, the owner, and this fee.

If it's not on the up and up, even if you get into an apartment, you may get kicked out shortly after if it hasn't been approved.
nough said right there!
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Old 04-11-2010, 06:16 AM
 
1,016 posts, read 466,345 times
Reputation: 171
Sounds very shady... applications are NEVER that high anywhere from $25 to MAYBE $100. You should contact that persons coop board and let them know what they are doing.
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