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I am looking into an apt to purchase (coop) and the building has a very liberal sublet policy. Anyone have any thoughts on this? Does this create a lot of problems for the owners that live in the building. Is there a lack of commitment to the building if owners don't live in it?
As long as the board is strict in the sublessee vetting process I might not be terribly concerned. However, if the building is more subtenant-occupied than owner-occupied I would probably look elsewhere.
High # of renters may = high # of people who ignore the house rules. Liberal sublet policy may benefit you in the event you lose your job, get transferred, or want to monetize the investment as a short-term income producer. Liberal sublet policy may result in lack of resident owners to participate in running co-op, leading to long-time board members with entrenched views, and/or absentee owners making/voting on decisions that are not in the best interests of residents (e.g., "why should I vote for the hallway upgrade? I don't have to see it.") High renter turnover in building may increase wear & tear on building, leading to higher repair costs. High renter turnover in building means that the neighbor you hate may move soon. Liberal sublet policy may mean they don't, if there aren't limits on sublet terms). What environment do you want to live in?
How liberal are we talking? How big of a building? And what % of units/shares are currently sublet?
My building went from extremely liberal to extremely strict after a financing scare. Nothing like the prospect of having to cough up $50-60k each to pay off the underlying mortgage to make people realize that sublet restrictions are not just the board being meeeeeeeeeean.
Its a personal choice. I wouldn't care for a building with such a policy. As a full time resident, I want to share the building with other full time residents who care about the building and "have skin in the game." I don't want transcient renters and the problems they bring.
What if columbiacounty were one of the renters, would it be ok then? He was respectable until he was disgraced. Not that he carries that around with him.
Check the % of owner occupied vs. sublet units. Managing agent will have this information. <50% and financing becomes an issue for future buyers affecting value. Liberal can be good but as others pointed out here, it could also raise some flags. Generally higher owner occupancy of a building creates a better environment for the building and the banks that finance in it.
Thank you for all the helpful comments. I will follow your recommendations and find out more.