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Here's the back and forth between a listing agent and a direct buyer who's concerned about the sublet policy. This buyer only wants coops that allow unlimited subletting, which as you can imagine is quite rare. This specific coop seems to have an unofficial unlimited sublet policy. Has anyone else seen this?
This is the conversation between the listing agent and the buyer:
Listing Agent: So, per management office right now there is no written document stating that it is "unlimited" per se, but as long as they are a good tenant adhering to the house rules with no complaints from anyone in the building and making timely payments, their lease can be renewed each year. The lease renewal process is very lax where two months before the lease is set to end each year, the shareholder will receive a notice from office inquiring as to whether their tenant will renew their lease or not, etc. Shareholder informally reaches out to tenant, asks if they would like to renew their lease, confirm monthly rental price... Tenant says yes and shareholder simply mails out a letter to management office stating that tenant has been great with paying rent on time, etc and that they will be renewing lease and shareholder attaches a check for the subletting fee of 13% of the annual gross rent made out to the management company. There are no additional interviews, application requirements for the tenant during each renewal.
Buyer: Is there a written document specifically regarding its sublease policy instead of your own writing? I’m assuming there is a policy written out regarding sublease policy since all buildings have it. I would prefer to see the actual document. Thank you.
Listing Agent: Below you will find the sublease policy provided to me by management today via email confirming unlimited subletting after 2 years and fees:
SUB-LEASE POLICY
• The sublease term is a minimum and maximum of one (1) year only and are subject to review by the Cooperative Board.
• Subleases can be renewed, subject to Board approval for additional one (1) year period(s). To renew, the shareholder must write a letter requesting the extension to Building Management. This letter must be sent at least six (6) weeks prior to the expiration date of the current sublease.
• New Lease or Lease Rider.
• For each year the apartment is subleased, an ANNUAL FEE of 13% of the gross rent must be paid to the Corporation.
• Updated or new insurance certificate for the renewal term.
This is the conversation between the listing agent and the buyer:
Listing Agent: So, per management office right now there is no written document stating that it is "unlimited" per se, but as long as they are a good tenant adhering to the house rules with no complaints from anyone in the building and making timely payments, their lease can be renewed each year. The lease renewal process is very lax where two months before the lease is set to end each year, the shareholder will receive a notice from office inquiring as to whether their tenant will renew their lease or not, etc. Shareholder informally reaches out to tenant, asks if they would like to renew their lease, confirm monthly rental price... Tenant says yes and shareholder simply mails out a letter to management office stating that tenant has been great with paying rent on time, etc and that they will be renewing lease and shareholder attaches a check for the subletting fee of 13% of the annual gross rent made out to the management company. There are no additional interviews, application requirements for the tenant during each renewal.
Buyer: Is there a written document specifically regarding its sublease policy instead of your own writing? I’m assuming there is a policy written out regarding sublease policy since all buildings have it. I would prefer to see the actual document. Thank you.
Listing Agent: Below you will find the sublease policy provided to me by management today via email confirming unlimited subletting after 2 years and fees:
SUB-LEASE POLICY
• The sublease term is a minimum and maximum of one (1) year only and are subject to review by the Cooperative Board.
• Subleases can be renewed, subject to Board approval for additional one (1) year period(s). To renew, the shareholder must write a letter requesting the extension to Building Management. This letter must be sent at least six (6) weeks prior to the expiration date of the current sublease.
• New Lease or Lease Rider.
• For each year the apartment is subleased, an ANNUAL FEE of 13% of the gross rent must be paid to the Corporation.
• Updated or new insurance certificate for the renewal term.
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