Coops with Liberal Sublet Policies (sale, apartment, rentals)
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There's a 3 story penthouse in TT that may soon come up for sale after a bank (probably Deutche Bank) foreclosure. <Don't believe the advertised square footage.> A tolerance for gaudy-chic is a plus.
Large or even significant number of units for rent in a co-op (investor or owner) drives down prices. That is one reason why many co-ops either don't allow renting, have caps, other rules and this includes subletting.
Banks and others providing financing for co-op or condo units take into account careful consideration of units owned by investors and or rented out versus owner occupied. It will vary by institution but when number of units rented, sublet or whatever hits a certain point financing becomes tricky or even difficult to obtain.
Tudor City is a case in point; co-op units are very inexpensive in those buildings because of high number of units rented out. Again either via investors bought just for that purpose, or shareholders.
It varies by building of course, but higher up food chain one goes feeling is that people should be able to carry their apartment in city (be it a pied-a-terre or whatever) and still afford home or homes elsewhere without having to rent out the co-op unit.
Lower down you go into middle-class buildings boards tend to be more understanding of people either needing or wanting to make money.
By definition a co-op is meant to be a group of households that coming together to live "cooperatively". Where you have constant turn over of units every one or two years due to rental or sublet, that defeats its own purpose.
This is an excellent analysis. I wasn't thinking of socioeconomics. I knew about the lending/downward price pressures related to sublet regulations however you are absolutely right about upper end vs. middle class buildings and how they view coop rentals. I come from a very middle class background so that has colored my views.
You're probably not going to get a definite list because what a building allows today may not be so tomorrow or next month.
Co-op boards pay attention to sales prices and value of units. If too many apartments are being sublet/rented and it begins to affect sales prices either of its own will or prompted by shareholders a board will have to act.
Problem with renters or sublet even in a co-op or condo the board isn't the landlord per se; but owner of shares or unit. This creates problems if tenant is causing problems or whatever, board can only go after shareholder/owner to force him/her to take action. In meantime you've got someone in unit totally pi$$ing others off.
In extreme situations a co-op board can act to oust a shareholder.
+1 from me
This is very insightful information. My entire motivation is to keep things flexible in case I'm not going to be there, having a tenant or family member staying there is a good "utilization" of the space. However, I'm not a fan of ticking off neighbors/the board by placing someone else.
I see a number of listings that mention "Sponsor Unit" and they seem to be flexible (pied a terre, sublets etc.), however it seems like the definition of the sponsor unit might vary with the building/board as well?
It's looking that way. While there are a number of condos available for sale, the inventory is still limited in comparison to Coops. I understand the flexibility of Condos and prefer that over the Coop limitations.
I wanted to see if anyone has a list/information regarding Coops that have liberal sublet policies (allowing for sublets from day one, etc.)? I tried searching for a list of buildings/developments, however, I was not able to locate one.
Streeteasy does allow you to search for keywords like 'unlimited sublet' however that's only limited to units that are for sale/have sold. If anyone has additional information, I would appreciate it.
Subletting is a disease to the fabric of any neighborhood.
Would not support such behavior...................Sorry.
This is very insightful information. My entire motivation is to keep things flexible in case I'm not going to be there, having a tenant or family member staying there is a good "utilization" of the space. However, I'm not a fan of ticking off neighbors/the board by placing someone else.
I see a number of listings that mention "Sponsor Unit" and they seem to be flexible (pied a terre, sublets etc.), however it seems like the definition of the sponsor unit might vary with the building/board as well?
Sponsor units are apartments still owned by developer or whoever built or did co-op/condo conversion that remain unsold.
In case of co-ops only good thing about buying a sponsor unit is ability to bypass the board. Otherwise everything else is same; that is laws or rules regarding sublet, renting, use as pied-a-terre, and everything else are same.
I wanted to see if anyone has a list/information regarding Coops that have liberal sublet policies (allowing for sublets from day one, etc.)? I tried searching for a list of buildings/developments, however, I was not able to locate one.
Streeteasy does allow you to search for keywords like 'unlimited sublet' however that's only limited to units that are for sale/have sold. If anyone has additional information, I would appreciate it.
From day one maybe not; but many buildings in Tudor City have very liberal sublet policies.
Sponsor units are apartments still owned by developer or whoever built or did co-op/condo conversion that remain unsold.
In case of co-ops only good thing about buying a sponsor unit is ability to bypass the board. Otherwise everything else is same; that is laws or rules regarding sublet, renting, use as pied-a-terre, and everything else are same.
I have not posted in city data for about 5 months but I decided to chime in .
We were sponsors ourselves .
As sponsors we owned apartments that were not bought in the original conversion to coop and so these tenants remained rent stabilized tenants .
So sponsors tend to own rentals in coops until they are sold either to investors , the original tenants leave or the tenants buy them if they were conversions..
Sponsor rights do not automatically follow the sale of a coop apartment.
There is a load of paper work that has to transfer sponsor rights along with the sale ..if the seller can’t prove they were issued sponsor rights then you can’t pass them on in a sale .
In order to retain sponsor rights the seller can never have lived in that apartment either .
Having sponsor rights let us put together crazy deals to move apartments to either new buyers or existing tenants .
We could offer them no money down needed even though the building requires 25% .we could sell for half the value if we wanted and the board cannot stop the sale …
We got our sponsor rights through a chain ..Bernard spitzer sold a bunch of apartments to someone else and passed them his sponsor rights , we in turn got sponsor rights when we bought the package .
We sold the last two apartments to an investor group ,,they would not buy unless we could pass them sponsor rights .
It took a lot of work to get the documents needed to do that but we did ..so we sold the last two apartments for cents on the dollar to the investor group .
Now they will sit at break even rents and speculate the tenants will leave or take a buyout on their lease .
They can sell and pass down their sponsor rights .but once a buyer lives in that apartment sponsor rights no longer exist
Even if a coop allows you to rent the tenants have to be approved by the board .
That can mean a months wait if you missed the last meeting …so you can not only loose a months rent while waiting but from the tenant side they may have to wait a month and then first find out they weren’t approved so when time is an issue tenants will pass on renting in a coop .
Sometimes the tenants first have to give a months notice when moving from their current place so that can add to the time you collect no rent .
I used to have a 6 ft hero delivered to the managing office to try to make sure my tenant approval wasn’t forgotten about at the meetings
condos cost more money.
CO-OP has bylaws,it should have something to say about subletting/
Back in the 80s,you can even buy a hotel room,and ask them to rent it out for you when you are not using it?
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