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Old 11-02-2012, 01:53 PM
 
2 posts, read 16,559 times
Reputation: 11

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Hello everyone,

I've been looking for a place for my parents lately and found this 1-bed apt in a coop building. This is a nice building & unit but application fees seem to be hefty. I would like to negotiate with a coop owner and would appreciate your advice.

So here is the situation:

non-refundable application fee: $350
non-refundable building manager fee + credit check: $575 ($400 for applicant and $175 for guarantor - I'm going to be a guarantor)
refundable move in fee: $300

So total non-refundable fee is $925 (I don't have a problem with refundable move in fee) for $1500 1bed.
A coop owner is willing to assume $400 if the application gets rejected but I think non-refundable application fee is too much anyway and risking to lose $525 if rejected is too much.

I would like to ask the owner either (1) pay building manager fee or (2) lower rent. I'm willing to walk away as rent for this place is already maximum that my parents are willing to pay. I'm not using a broker to avoid fees but this feels like paying broker's fees given the amount. (It's in Queens and a broker usually demands 1 month rent in Queens).

If you have any insight into renter's application fees for coop building, I would really appreciate. Thank you!
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Old 11-02-2012, 02:01 PM
 
Location: Upper East, NY
1,145 posts, read 2,884,148 times
Reputation: 561
I think those fees are unfortunately common for a co-op rental. There might even be other requirements like letters of recommendation that make the application equal to what a new owner has to do with a co-op.

You should get a lower rent that compensates (and then some) for the upfront fees and the time (Board has to meet to approve the application) and risk of rejection. Do you think the $1500 is lower than what a comparable non co-op 1-bed would be going for?

You have leverage in that you could make the owner feel nervous that his apartment is less liquid in the rental market due to the inconveniences and restrictions above. Of course, you either have leverage or you don't so if you can figure out if the apartment currently has a lot of demand than you can judge if you can use the leverage to ask for a discount.
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Old 11-02-2012, 02:09 PM
 
2 posts, read 16,559 times
Reputation: 11
Thank you for your response crescent22! I looked at other comparable listings and I saw 1-bed condo at $1500 and 1-bed coops at lower price. Your answer helped me decide how to move forward. Thanks!
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Old 02-04-2013, 01:14 PM
 
83 posts, read 171,913 times
Reputation: 48
sorry but doubt those fees are negoitable, if so everyone else would be jumping on the bandwagon and to those who lived in the coop would be pretty upset if someone new in the building getting a better deal...
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Old 02-05-2013, 01:49 PM
 
14,026 posts, read 13,124,266 times
Reputation: 19063
I think you should walk away. First, those fees are quite reasonable. Second, I doubt you're so special that the owner should do you any favors. Third, no one should ever get a place that's the maximum they can pay; after all, what will you do when the owner inevitably raises the rent?
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