Coops with Liberal Sublet Policies (Dix: rental, eviction, coop)
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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?
Condos tend to cost more because unlike coops there is no mortgage held on the building paid through maintenance..many coops have mortgages that hold the shareholders equity .
It is like back in 1987 I paid 77k for our kew gardens co op but there was another 25k in eventual equity held in the building mortgage.
For depreciation purposes since it was an investment property our total purchase price was both added together ..but if you asked what we paid it was just 77k.
Condos include both sides of the equation in their price.
Some prefer coops just because of their rules and ability to control things
Last edited by mathjak107; 10-17-2022 at 08:37 AM..
Subletting is a disease to the fabric of any neighborhood.
Would not support such behavior...................Sorry.
I understand where you are coming from. I'm not buying it as an investment property, instead looking for flexibility in case I am not able to spend time in the apartment, I can always place a family member or a tenant in there.
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.
Understood. It doesn't sound like the Sponsor units confer any specific advantage with respect to what I am looking for. I'm not worried about qualifying for the board from a financial, or professional perspective.
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
Thank you so much for taking the time to post. This Sponsor matter is very intricate. It sounds like I wouldn't be able to enjoy the Sponsor benefits if I move in, which would be the plan anyway.
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
So coop renting can be a tough challenge
I see your point, I am not super concerned about the delays related to renting. If I buy now, I'd be occupying the unit for a few years and if I were to leave and have someone else move in, I would start working on it a few months in advance and would probably need to set rates a little below market for the tenant to go through the Coop board hassle.
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?
You're right, it's a trade-off, right? Condos cost more but come with fewer hassles with respect to family staying in/rentals etc.
Wow, the 80s sound like a wild time for real estate between what you're describing and the 1986 Tax Reform, it seemed like RE operated very creatively back then.
I came across an interesting option. I'm seeing some Coops for sale that come with a rent-stabilized tenant. However, if you are looking to move in and the owner occupies, you can ask the tenant to leave. Of course, you have to honor the existing lease terms and also go through the legal system to get things done plus the unit would most definitely need to be renovated, but if the price is right, all of this could be worthwhile.
I'm considering this option as well so that I don't need to worry about the sublet issues. I'd pay cash to purchase a unit like this and move in as soon as the RS tenant moves out.
I came across an interesting option. I'm seeing some Coops for sale that come with a rent-stabilized tenant. However, if you are looking to move in and the owner occupies, you can ask the tenant to leave. Of course, you have to honor the existing lease terms and also go through the legal system to get things done plus the unit would most definitely need to be renovated, but if the price is right, all of this could be worthwhile.
I'm considering this option as well so that I don't need to worry about the sublet issues. I'd pay cash to purchase a unit like this and move in as soon as the RS tenant moves out.
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