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Almost all co-op apartments in NYC have subletting rules which apartment owners, also known as shareholders, must follow. A typical coop building in NYC will allow you to sublet your apartment for one or two years every few years.
Most co-ops charge apartment owners a subletting fee, and it’s also customary for co-ops to require a new owner to live in his or her unit for one to two years before being permitted to sublet.
There are a number of different types of coop sublet policies in NYC. They range from outright prohibitions on all subletting at one end to unlimited subletting at the other extreme. The most common sublet policy for co-ops in NYC allows one to two years of subletting after one to two years of initial occupancy by a shareholder.
Almost all co-op buildings in New York City require a minimum lease term of one year, and many co-ops cap the length of any initial sublet to one or two years. Thereafter, depending on the building’s policy, the shareholder would have to re-apply for additional sublets, move back into the apartment or leave it vacant.
Most co-ops charge a sublet fee which is either a flat fee, a flat fee per number of co-op shares owned or a percentage of your monthly or annual co-op maintenance bill. Co-ops usually charge subletting fees as a way to raise revenue while also discouraging owners from subletting in the first place.
A co-op’s subletting fee can be a monthly fee as a percentage of the unit’s maintenance, an upfront fee based on a dollar allocation per share of coop owned, or an increasing fee based on number of years of subletting.
Any building subletting fees are charged in addition to the the standard application, credit/criminal background check, and move-in / move-out fees which are levied by both condos and coops.
Where Can I Find a Co-op’s Sublet Policy?
If you are searching for a coop online, you may discover that listing agents do not usually disclose the sublet policies in listing descriptions. Even if they mention the sublet policy in passing, it likely won’t be very specific and may exclude important considerations such as the amount of the sublet fee. Therefore, the easiest way to find a co-ops sublet policy is to ask the listing agent or your buyer’s broker.
How Is Subletting Different for Condos vs. Co-ops in NYC?
Condos are are far more flexible for of home ownership which means you typically have much more flexibility to sublet compared to a co-op. However, most larger condos in NYC still have rental rules as well as an application process for prospective tenants.
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