Co-op board wants to inspect our CURRENT residence before approving? (New York: apartments, renters) - New York City - (NY) - City-Data Forum

NewtoNYC2 · 02-02-2010, 05:27 PM

My husband and I recently completed a 14 page application to rent a co-op in Forest Hills. One page included permission to inspect the home, and we paid an $85 fee to have this done.

Two days before the co-op board approval meeting, we're told that the fee is to inspect our CURRENT residence in Williamsburg. They want to send a consulting agency to the place we live now and "inspect" for a set of criteria that the broker claims is undisclosed. The agency will also ask to take our photos and photos of our driver's licenses.

The broker insists this is a fairly common practice in some co-op buildings, but I've done a ton of research and haven't uncovered anything to back that statement up. The native New Yorkers I've spoken to think it's appalling and suggested we walk away.

Has anyone else heard of co-op boards requiring an inspection of a prospective renter's current residence? To me, this seems insulting and invasive, and the fact that it wasn't clearly explained up front makes the whole concept come across as shady. Thanks for sharing your perspective.

Viralmd · 02-02-2010, 06:14 PM

There are probably different (higher) standards for those who rent in a co-op, as the residence isn't their actual property (well, in a co-op it isn't, but you get what I mean) and the tenants' names aren't on the proprietary lease that true shareholders get. So the assumption is that the renters might not take the same level of care with the residence as the actual shareholders.

I was born in NYC, have lived here my entire live and have lived in co-ops growing up and do so now as an adult, and I confess I've never heard of that level of intrusiveness. I'd walk away, too.

bluedog2 · 02-02-2010, 06:28 PM

I have heard of this requirement even for people purchasing in some coops but I think it is pretty rare.

The Amalgamated Houses in The Bronx,for one,requires the inspection of the residences of all prospective purchasers and they have a 3 to 7 year waiting list . It's a limited equity co op.

I have also heard of a few others but not many.I think maybe it tends to be in the really old "early"
co ops that were established in the 20's.
Amalgamated Housing - About Us

This is from their admissions handbook :
"Co-op policy and prudent management practice require new applicants to undergo a thorough background and credit check, including a home visit, before being allowed to join the co-op. There is
a nonrefundable investigation fee, for the first adult and for each additional adult."
They also make you go to a seminar to make sure you understand the idea of co operative ownership/living.

NewtoNYC2 · 02-02-2010, 06:36 PM

SeventhFloor: Thanks for replying. To answer your question of why we paid the fee: With the tremendous list of things they asked us to do and pay for, a home inspection fee didn't seem out of line. After all, this is common practice when you buy a home, and the process is so complex that it seems like we ARE buying a home. So we assumed--what else WOULD a home inspection fee be for, other than to inspect the new home and make sure the owner and tenant are on the same page in terms of the apartment's condition? It never occurred to me that I might be paying for someone to inspect my current residence. Never. And nothing the broker said ever suggested that, either. The broker knew my husband and I were new to the whole co-op thing (and I'm new to the state) and I think he conveniently failed to explain it until after we'd paid all the non-refundable fees. That angers me more than the fact that a total stranger will be coming to our home to make judgments about how we live.

Viralmd: Thanks, the fact that this whole concept is foreign to you, too, makes me feel better.

NewtoNYC2 · 02-02-2010, 06:40 PM

Bluedog2: Thanks for that info. "Home Visit", I get. There's no misunderstanding with that term. The particular apartment building we're looking at definitely does not have that type of waiting list or demand. The property's been on the market since late summer, and the price has dropped, too. I'm wondering if this board approval process is part of the reason why.

bluedog2 · 02-02-2010, 06:54 PM

This really sounds like it's mostly the broker who is at fault.He/She should have known of this requirement and informed you at the beginning.
At least at Amalgamated the rules are quite clear and you know what you are getting into.

Cida · 02-04-2010, 03:31 PM

Wow, I'm stunned. I've never heard of this, but instead of asking your broker -it's in his best interests to shove you along - try asking a lawyer. You'll need a lawyer anyway, right? This seems outrageous to me.

Nugget · 02-04-2010, 05:13 PM

Quote:

Originally Posted by Cida

Wow, I'm stunned. I've never heard of this, but instead of asking your broker -it's in his best interests to shove you along - try asking a lawyer. You'll need a lawyer anyway, right? This seems outrageous to me.

Why ask a lawyer - no need to rack up fees yet. A Co-Op is well within their rights to dictate what their requirements are.

bluedog is right it really is up to the broker to explain the process, especially one that it out of the usual.

cleasach · 02-04-2010, 05:24 PM

I have rented in NYC my whole life and have a lot of friends who rent out co-op apartments. I, and those friends that I asked, have never heard of such a thing.

NewtoNYC2 · 02-04-2010, 06:19 PM

The lady who runs the consulting service we're paying to come out says it's very common with my realtor. The service doesn't appear to have a website or any information explaining who they are or what they do, although the woman was very nice and happy to answer our questions as best she could. Personally, I think it's a whole racket this realtor has created to drum up a fake business for a personal friend.