You may expect the majority of apartments in New York City to be quite similar: pre-war walkups with limited and similar square footage, or newer buildings owned by property managers. However, in a city as large and architecturally diverse as NYC, there are plenty of varied options. Rentals come with different styles, management, and rules. This is especially true when evaluating the rental of an NYC co-op apartment.
Unlike condos or rental buildings owned by large real estate companies, the owners of co-op apartments do not own the apartment. They own shares in a corporation that provides them with a proprietary lease on that specific unit. When you’re renting a co-op, you’re actually subletting the apartment from the co-op shareholder who holds that lease on the unit.
As a result, this raises several things you need to consider before renting a co-op in NYC.
1. How long do you plan to live there?
Most renters sign one-year or two-year leases when they’ve found an apartment they like. If they enjoy living there, property managers are usually more than happy to renew the lease again and again, provided they can agree on the monthly rental price for each renewal.
However, when subletting a co-op apartment, you are at the mercy of the building’s sublet policy which may put restrictions on the amount of time you can sublet the apartment. The rules of each co-op building can vary but, generally speaking, most co-ops limit sublets to a maximum of two years.
If you are hoping to settle into an apartment for a longer period of time, renting a co-op may not be the right choice for you. Make sure to ask the person you are subletting from what the sublet policy is in order to make an informed decision before moving forward.
2. Are you willing to complete a co-op board application and interview?
Co-op boards are notorious for being strict when evaluating buyers and renters in the building. Filling out rigorous applications and undergoing interviews is the norm for both parties.
If you’re looking for a simpler process, ask how intensive the co-op review process will be, otherwise, a co-op might not be the right fit for you.
3. How strict are the building rules in co-ops?
Every building has its own set of quirks, but co-op buildings might just take the cake. Given the high level of owner occupancy (meaning the owner lives in the building, too) in most NYC co-ops, the rules tend to be stricter than other buildings. These rules generally focus on:
- Noise levels
- Pet restriction
- Guests
- Subletting
Separate from the current rules around day-to-day living, the overall policies of the building are always subject to change if the co-op board so chooses. This could result in changes to sublet rules or countless other policies that may deter you from renting or renewing your sublet.
4. Are there additional fees to rent?
As can be expected from most buildings in NYC, you are likely to pay a security deposit when moving into a co-op. Some co-ops also request an application fee for the review and processing of your co-op board rental application.
In addition, co-ops can also issue additional maintenance fees to co-op owners that sublet their apartments. Ordinarily, this is already reflected in your monthly rent when the owner markets the rental, but if the fees change during the term of your lease, the owner you are subletting from may try to pass along those fees to you in the form of a higher rent when it comes time to renew.
Be sure to ask if the building charges additional fees for sublets and if those rules have ever changed. While the owner can’t guarantee anything won’t change in the future, it shows them you are an informed renter who knows their rights.
5. Can I have a pet while living in a co-op apartment?
Renting with a pet isn’t always easy, so be sure to ask about the pet policy. It always depends on the building, and co-ops are no different. The majority of co-ops have an explicit pet policy, and the policy typically pertains to the size or weight of the pet, as well as the number of pets allowed per unit. In some very rare cases, co-op boards will ask to meet your pet during the board interview process.
Ordinarily, renting with a pet will be as simple as filling out a form confirming that your fluffy friend is vaccinated and meets the building requirements. One catch with some co-ops is that renters may not have the same pet rules as owners. In some instances, renters may not be able to have pets unless they are documented service animals.
Pros and cons of renting a co-op in NYC
Pros:
You’ll get great value
If you’re planning on renting long-term, renting a co-op could get you more for your money in terms of amenities and finishes. Because co-ops tend to be leased by individual property managers, the rent can be more reasonable since managers are motivated to fill vacances.
Your building will be well taken care of
Co-ops are generally more well-maintained than other types of rental buildings. Residents can expect quality materials and well-designed common areas like lobbies and amenity spaces. You’re also likely to find long-time staff members who take care of the building, which is an opportunity to form quality relationships with on-site teams.
Cons:
There can be a hierarchy between shareholders and renters
Owners and renters can have different fees or rights. There’s a chance renters may have to pay to use special amenities, but this is rare. Owners or shareholders see themselves as more invested in the building, and renters can be seen as less invested. Property managers are also stricter about the building rules.
Getting approved is a time-consuming process
Because prospective renters have to go before a board to get approved, this slows down the process. It can takes weeks from once an application is submitted to get approval. There are also limits on how many years you can rent a unit. Do your research and verify that the unit has been rented out consistently for a few years at a time.
Frequently asked questions
The co-op board approval process involves submitting an application, financial documents, references, and sometimes attending an interview. The board reviews your application and makes a decision based on their criteria. It’s crucial to prepare a strong application and be patient as the process can take several weeks or even months.
Co-op boards generally require tenants to meet certain financial criteria, which may include demonstrating a stable income that meets a specific threshold, having a good credit history, and possibly providing proof of financial reserves or assets. It’s important to review the specific requirements of each co-op building before applying.
Subleasing a co-op apartment in NYC can be challenging due to the restrictions imposed by many co-op buildings. Some buildings prohibit subleasing entirely, while others have limitations on the duration and frequency of subleases.
Maintenance fees are monthly charges that co-op residents pay to cover operating expenses, including building maintenance, utilities, property taxes, and amenities. Assessments are additional fees imposed by the cooperative board to cover major repairs or capital improvements. It’s important to understand the maintenance fee structure and any potential assessments when budgeting for a co-op rental.
Co-op buildings have their own set of rules and regulations that govern various aspects of living in the building, including noise restrictions, pet policies, renovation guidelines, use of common areas, and more. It’s important to review and understand these rules before renting a co-op apartment to ensure they align with your lifestyle and preferences.
While co-op apartments offer certain advantages, such as a sense of community, stability, and potential for long-term appreciation, they may not be the best investment option for all renters. Factors such as the length of stay, financial goals, and flexibility should be considered when determining if a co-op apartment is a good investment. Co-op apartments often require a long-term commitment, and selling shares in the future may involve additional complexities.
Terminating a co-op apartment lease early can be complex, as it involves navigating the co-op board’s policies and potentially finding a replacement tenant approved by the board. It’s important to review the lease agreement and understand the specific terms and penalties associated with early termination. Consulting with an attorney or reaching out to the co-op board for guidance is advisable to ensure a smooth process.
In some cases, co-op buildings offer tenants the opportunity to convert their rental units into ownership. However, the availability of this option varies depending on the individual co-op building’s policies.
Co-op apartments and condominiums differ in ownership structure and management. In a co-op, tenants own shares in a cooperative corporation, while in a condominium, owners hold individual titles to their units. Co-op buildings tend to have stricter rules and require board approval for rentals, while condominiums generally offer more flexibility.
Does renting an NYC co-op still sound like it’s the right fit for you? Check out thousands of apartments for rent on Zumper and find the perfect co-op.
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