Condo Sublets

My tenant in the Parc Vendome (a 1930s building that went condo in the 80s) has a long-term lease, but I feel like in the building that there's a great deal of shorter-term subletting that goes on -- it's a 600-unit building so perhaps the board is not focused on long vs. short-term leases.

ali r.
DG Neary Realty

some condos mandate a 1 year minimum lease

Thanks, Front Porch. What is the minimum rental period specified on the books, and what are the
shorter term subletting periods to which you are referring? I hope others will weigh in with
their remarks as well.

I have been looking at condos too and found sublet rules at open, 6 months minimum, one year minimum. Best to ask the owner/broker before you make an offer.

MS!, let me dig out my copy of the house rules and get back to you on that.

ali

Chris T, can you give me examples and some sense of the relative distribution of open, 6 months
minimum and one year minimum, and whether this varies by new construction or older buildings?
It would be much appreciated.

Thanks,
MS1

When I purchased a condo in Manhattan as an investment property, the minimum and maximum lease was very important to me. I found for the most part that the condos required a lease of 1 year and no more. What I found to be true was that they allowed almost anything from 3 months on and no maximum. There are the fees that the condo association charges for move-ins and move-outs which could put a crimp into very short leases. And most owners renting out apartments do not want to have to go through the rental process every few months.

csn, let me make sure I understand you. For the most part, the condo by laws required that leases
be written for a period of a year, neither shorter nor longer. However, in practice rentals for 3 months, 6 months,etc. were allowed, as well as rentals exceeding one year? Is my understanding of your
note correct?

Thank you,
MS1

The condo is worried about you letting out your apartment on a daily basis --- essentially 'hoteling' it. Anything over 6 months is usually find.

My condo has a one year minimum sublet. In practice, other owners are renting for shorter time periods. However, there is currently a problem renter and it was discovered he had a short term lease. Owners are now organizing to the tighten the rules,inflict penalites and forbid the offending owner to rent again to that problem renter and enforce the proper time limits. I wouldn't count on anything but the written rules. Don't plan your investment with the intent to skirt the rules.

Thanks, apt 23. Good story, good advice.
MS1

Overall, if a condo has a strict no subletting policy (and it has to be prinary residence), what kind of an inmpact does that have on the resale value since investors would be removed from the pool of potential buyers? Should this be taken into account when looking at comps in the area WITHOUT said polict when preparing an offer?

impact...policy

Pretty weird to have such a strict policy on no sublet. THat is a pretty big limitation on your ownership rights. I would look at the by laws. Some condos seem to have these rules, but they have no basis so are legally not enforceable.

I agree. How can it be enforced? However, from what I can tell, the board means business. I want to use it to strengthen my negotiating position as a buyer in terms of offering price.

How can it be enforced, easily the doorman notifies management and management instructs the doorman not to allow access. Keep in mind all it takes is one complaint by a neighbor to management and you will have problems. Some residents I guess do not appreciate transient neighbors moving in and out of the place every 3 to 6 months.

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Ottawanyc
about 17 hours ago
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Member since: Aug 2011
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Pretty weird to have such a strict policy on no sublet. THat is a pretty big limitation on your ownership rights. I would look at the by laws. Some condos seem to have these rules, but they have no basis so are legally not enforceable.

Before listening to Ottawa, look up the thread he started where he wanted to refuse to follow the rules of the condo for the purchase application.

here we go:
http://streeteasy.com/nyc/talk/discussion/31151-condo-board-application-tell-them-to-shove-it?

The seller is pointing to comps in the area. My reposne is that this policy is a drag on the price (my offer is bout 6% below ask). Am I right?

One year minimum is typical in new condos. For a tenant to get building access, ability to be on the building manager mailing list (important to know things like maintanence issues), access to amenities if they exist, etc. they will need to be recognized by the management office, which will recognize renters for whom paper work has been submitted....and that paper work will need to comply with the rules. I think it's easier to sneak in someone for a week than to have someone there three months with no paperwork....but constant flow of new one week people would perhaps attract complaints.

Sorry, I didn't mean physically enforceable, I meant the underlying basis for the policy. As in I would look at the actual by-laws, as a strict (as in absolute) no sublet seems a bit much.

If there is a no sublet policy, you should offer what a coop would be in the area.

They may have such a policy to protect owners' ability to find buyers, particularly if in an area where a lot of buildings have more than 25% of the units rented. I would view a strict limitation on the number of units, if any, that could sublet with mixed feelings. On the one hand it limits, or eliminates, your ability to rent out your unit if you need to. On the other hand, unless you are buying in a building with strong foreign demand, when you go to sell your buyer is going to need a mortgage, and with too many renters will not get one.

>when you go to sell your buyer is going to need a mortgage, and with too many renters will not get one.

Some people just can't get over their non-stop anti-renter bias.

Funny.