Home Buying in New York>Question Details

Georget, Other/Just Looking in New York, NY

If i buy a coop apartment, can I then sublet it? Who would pay the maintenance fees in this case?

Asked by Georget, New York, NY Mon Jun 11, 2012

Help the community by answering this question:


As you've seen most co-ops do not allow subletting. The reason being is that Fannie Mae does not want to purchase co-op loans in buildings that have less than 51% ownership therefore building managements changed the policies in most buildings once Fannie Mae changed their guidelines several years ago. If you're a shareholder in a co-op you want to make sure your building is marketable and having the ability to sell to any buyer able to obtain a mortgage through the major lenders is high on the list.
0 votes Thank Flag Link Tue Jun 12, 2012

Co-ops vary greatly in their sublet policy, but in general it is frowned upon. The most common is 2 out of five years. Most require you to live in it 1-2 years first. If your goal is an investment that you can rent out, a condo would be the better choice. As far as who pays the maintenance if you rent out a co-op, you are responsible for all your usual maintenance payments, any assessments, etc. You would have a lease agreement with your tenant for the amount of rent. You would collect rent from the tenant, and then pay all your usual payments (including mortgage).

I would strongly suggest you use a buyer's agent for your search and purchase. We can streamline your search, negotiate on your behalf, and take you through each step of the transaction. It will save you lots of time, money and aggravation.

Jenet Levy
Halstead Property, LLC
212 381-4268
http://jenetlevy.halstead.com for all NYC listngs
0 votes Thank Flag Link Mon Jun 11, 2012
As you may have already seen, co-ops are not rent friendly places. Some co-ops even charge a "rental" fee such as $15 per share if you are renting the unit out. They do this ti discourage renting your aparatment out.

I suggest you purchase in a condo if you are looking for an income generating property. And, make sure to hire a vetted professional to help you though the quagmire of Manhattan real estate.

Read: How to Buy an Apartment in Manhattan and Get the Best Interest Rate


Check out my blog for important information that will help educate you on the purchasing process and what will fit your needs.

If I can be of service, feel free to reach out to me at your convenience.

Jennifer Chiongbian
SVP/ Associate Broker
Rutenberg Realty NYC
0 votes Thank Flag Link Mon Jun 11, 2012

The fees are paid by you. Every co-op has a unique sublet policy and many will not allow it in the initial period of ownership, if at all.

Not to sound like every other agent on this site, but you really need an expert to help you with this.
Even with all of the data available on the internet these days, NYC real estate is very unique.

The realities and the market perceptions are vastly different.
Someone working in Westchester or Long Island will be like a fish out of water in Manhattan.

If you need to get it done the right way, I am available to assist.

Best regards,
0 votes Thank Flag Link Mon Jun 11, 2012
The fact that you are asking might be a sign that you need to study up a lot before jumping in, good luck,

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
0 votes Thank Flag Link Mon Jun 11, 2012
Dear Georget,

Not many coops have a liberal sublet policy. Some have policies whereby the shareholder (person who buys the coop) must live there for a period of one or two years and then can sublet for a limited time period. Very few have policies where you can sublet whenever you want. If you do find that kind of situation, you would pay the maintenance and charge rent to your tenantt.

If you are looking for a situation where you can rent out your apartment, I would recommend you purchase a condo. But do check condo rules on subletting before purchasing. Although condos ae much more flexdible about subletting, a few have strict rules.

If you have any questions do feel free to contact me.


Ross Ellis
Licensed Real Estate Salesperson
Member of Real Estate Board of New York
212.317.7828 direct
770 Lexington Avenue, 10th Floor
New York, NY 10065
0 votes Thank Flag Link Mon Jun 11, 2012
This is a building by building policy, your should hire a real estate professional to help you. Please note we are paid @ the closing table. If you would like my help please feel free to contact me.
0 votes Thank Flag Link Mon Jun 11, 2012
Most co-ops don't allow renting and if they do restrictions may apply; therefore review house rules beforehand; also consider working with an agent of your own, he/she will be your best guide. Maintenance will remain the owner's responsibility...
0 votes Thank Flag Link Mon Jun 11, 2012
Very few coops allow subletting right away. In most coops you would have to live in the apartment for a number of years and then can sublet for some limited time allowed by this particular coop (most coops allow 2 out of 5, some coops allow only 1 year of subletting. Before buying, you have to verify this information very carefully, since every coop has its own Rules and Regulations and sublet policy.
Maintenance will always be responsibility of the owner/shareholder of the coop.
0 votes Thank Flag Link Mon Jun 11, 2012
Goerget, you would continue to pay the maintenance fee, the same way you would be responsible for paying the mortgage note. If the by laws allow you to sublet, the rental fees that you collect would contribute towards your monthly obligations.
0 votes Thank Flag Link Mon Jun 11, 2012
Hi, It depends on the individual coop and their by-laws. The owner would pay the monthly maint. as well.

Christopher Pagli
Accredited Buyer Representative
William Raveis Legends Realty Group
0 votes Thank Flag Link Mon Jun 11, 2012
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