ADMISSIONS MADE EASY: A FIVE-POINT PLAN FOR APPROVING A CO-OP BUYER

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4 Quality of life

One management executive at a large firm says it is important to remember the non-financial aspect of the admissions process. If the applicant is A-OK in every way except for a small problem with the money (you'll have to determine how you define "small"), you can try to work it out. "Financial difficulties can be adjusted for," he says, "but if the buyer has a nasty disposition or was a troublemaker in his last co-op, that's something that you can't fix up with money. And this directly affects the quality of life. So I think it's important to consider it."

He notes that different credit report companies "offer different levels of information when it comes to that issue. Some companies will do a check of landlord-tenant court to determine if there have been any legal actions against the applicant from a prior landlord or another co-op or condominium. Other credit report companies actually go out and see where they lived and do an inspection of their home, speak to the doorman, superintendent. You get much more in-depth information.

5 References

Broker Siim Hanja, senior vice president/director at Brown Harris Stevens, notes that references are important. "If it's just superficial – ‘he's a great guy, you'd be lucky to have him in your co-op' – it's useless. The letters that dig in a little bit and have a little insight to the person do a great job of warming up the person to the board. Reference letters can't do a great deal of damage to anybody, but they can give a lift up if a genuine effort is made."

Boards should do their own investigations into references, checking up on contacts who weren't included in the reference letter package: the co-op or a credit agency (see above, No. 4) should contact a previous landlord or co-op/condo board and ask questions.

At the end of the day, if you've asked the right questions in all these areas, you have less chance of being burned.

Illustration by Liza Donnelly

From the February 2012 issue of Habitat magazine. For print-magazine articles back to 2002, join our Archive >>