New York's Cooperative and Condominium Community

Habitat Magazine Insider Guide

HABITAT

Subscribe for Daily Updates!
sublessorsSep 05, 2011

There are two separate issues here in your presentation, first do sub-lessors pay a privilege for the privilege and secondly, do they contribute to the contribution effort pool to the Coop. In our opinion, based on over 20 years experience, yes they (sub-lessors) need to pay a premium for the privilege. a surcharge of 10-15% of the monthly maintenance, collected monthly is entirely appropriate, but in many cases will require a super-majority approval vote if it is not already a part of your original bylaws, and no, you can't do this thru House Rules unless the mechanism is already present in the Bylaws.
Secondly, shareholder contribution to the ongoing effort to maintain and run the cooperative. It is my observation that the overwhelming majority of shareholders prefer to have it all done for them, and not have to actually make an effort personally, by serving on the board or actually working on projects, committees, teams whatever. Of the remainder a certain percentage are not ones whom should ever be on a Board because the are either single issue agenda types, don't get the concept of setting themselves aside for the sake of common good, have overarching issues, or lack larger perspectives as opposed to self gain, or are control and power freaks.
Some sub-lessors are committed to their Coop, and some are truly absentee. that's why you have a surcharge. Your subletting policy should reflect this and you need to make the sublet applicant criteria every bit as stringent as a purchase application. Either way you are shopping for neighbors, make it count. IF you involve your sub-lessee's in your building as neighbors, then they might contribute, if you ostracize or exclude them from the building community you get nothing.
You also need to hire licensed professionals and not turn your Coop into a do-it yourself/home handyman project. Unless you have shareholders who are actual professionals you will do inadequate quality work that will diminish the sales quality of your Coop. Your shareholder's are worth more, out there earning a dollar and using it to pay a pro, than taking the time off to do it themselves. Not anyone can paint, it is actually a skilled job, and prep for painting is even more so.

Join the Conversation Comments (0)

Introduce yourself to other members of Board Talk! Log in below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Introduce yourself to other members of Board Talk! Login below or register here.
Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Ask the Experts

learn more

Learn all the basics of NYC co-op and condo management, with straight talk from heavy hitters in the field of co-op or condo apartments

Professionals in some of the key fields of co-op and condo board governance and building management answer common questions in their areas of expertise

Source Guide

see the guide

Looking for a vendor?