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The Case To Revisit A Sublet Policy

Did you know that 85% of all apartments for sale in NYC are co-ops (owning a proprietary lease where the corporation imposes building policies to each shareholder)?
 
Building policies can indicate whether a sale will be smooth or difficult. A few years ago, I wrote about Real Estate Red Flags and when to paint them green.
 
As a co-op owner, {who has previously owned in an 'uncooperative' co-op} I am an expert on building policies! Buyers & sellers need to realize that co-ops restrict subletting to promote re-sales, and therefore resale value; the ultimate long-term goal of buying in NYC!
 
Is the sublet policy too strict?
 
  • a strict sublet policy means that after a certain period of ownership, you are either not allowed to sublet or a short (i.e. 1-2 year) period of time

  • a liberal sublet policy means the purchaser can sublet either immediately or unlimited based on board approval

 
Some buildings promote subletting:
 
  • By attaching a fee to bridge operating budget deficits (red flag)

  • When long-term shareholders with lower cost basis' have excessive power (red flag)

 
If you know anyone looking to purchase or sell, please reach out to me here or 330-936-7928!
 
 

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