Co-op Sublet fees

Sublet fees are all over the map. My building doesn't charge anything, but only permits sublets for 2 yrs over a 5 year period. I know of a building in midtown east that escalates the fee each year, capping around 20% of the rent. The point of the fees is to discourage use of the unit as a rental investment property. If you can make it financially viable in spite of the fees (and aren't violating other house rules), go for it, and hope they don't increase the fees, or eliminate the sub-rental clauses.

Aaron raises a good point. The "rules" for subletting are likely not in your proprietary lease but rather are in the bylaws or house rules set by the board. That means the rules can be changed at anytime by a vote of the board unless the bylaws say differently. So if the current rental rules are critical in your decision of whether to buy in this coop, think twice. Tweaking or completely changing the rules is possible in a worst case scenario that you should at least consider. Fees can be doubled, new ones added, time period allowed for renting can be altered, etc. Coops aren't made to rent and it is a little like fitting a square peg in a round hole. Condos are infinitely better for renting.

>and it is a little like fitting a square peg in a round hole

I'm pretty sure it isn't like that at all.

There's co-ops with no fees and theres co-ops that straight up say no subletting, and there's plenty in between. You should work with a broker to find something that meets your needs. You want an investor friendly building. That WILL greatly limit your options though, since most co-ops do NOT want transiency, hence the heavy fees on subletting. But there are some out there that don't give a damn what you do with your apartment (though don't be surprised when you find out your neighbors are running an airbnb next door)

I know of a co-op building where a relaxed rentals-allowed policy turned into no-rentals-allowed overnight, by the vote of the board. With all the risks inherent in your investment strategy with a condo property, I don't understand why you'd want to add another risk factor by buying a co-op. (Yeah, except it's cheaper psf.) You have been warned, good luck.