Subletting and renting rules must be in your bylaws if you wish to enforce any prohibition.

Our co-op has a rule that there are absolutely no sublets.

You might be able to enforce something retroactively if your proprietary lease document stipulates that only those on a “proprietary lease / stock certificate” may live in the unit.

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We are now in the throes of converting our 500 unit coop to condo. (As I have previously noted in other postings, we do not have any underlying mortgage so our path is significantly less onerous than the path faced by others coops. Likewise, we have not shirked our responsibility to fund capital improvements.)

We have learned in NJ as a condo association, we must allow rentals, but we can impose restrictions. By the way, this requirement to allow rentals is not a legal requirement in Florida. States differ.

Our planned restrictions will include:
1. One must be an owner for two years before one can rent. This avoids buying for investment purposes to rent only.
2. There will be a minimum of two years on a rental. This avoids transient populations.
3. The condo owner must pay a fee to the condo association up front. This avoids, “oops”, they skipped and we want to rent again.
4. There will be a limit of 20% as to the number of units that can be on rental at any one time. This avoids becoming a predominantly rental property. Conversely, this still maintains an 80% owner / resident population. Of note is that until five years ago, the sponsor owned about 20% of the units and thus we did have a rental population with no adverse affects, as the sponsor screened all rentals. The sponsor slowly divested its units over the past five years.

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Separately, I have researched the question of rentals, and I have found that there are additional impositions that can be enforced:
1. There can be a limit as to the dollar amount for which a unit can be rented.
2. A surcharge can be imposed, if an owner wishes to exceed the 20% limit.

At this time, we are reviewing changes to our coop bylaws that will be carried into the condo association bylaws. So, all the above is under consideration.


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Are there any other thoughts for the originator of the question or to our conversion plans narrated above?