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What percentage of units in a coop will make a bank think twice about granting mortgages to new purchasers (or refinancing the coop's mortgage)?
Put another way, what percentage of owner-occupancy do banks want to see before they will grant mortage loans in the building?
I live in a building where they don't even charge sublet fees nor do they know who's subletting or not. We have a building full of renters and it seems shareholders just do as they please when they want to sublet. Management doesn't check the board doesn't seem to care or check? What do you do in a situation like that. We have people in our building we have never seem before. That's quite upsetting when we could be collecting money and dissuade this from happening.
Yonkers -- See my >>Reply to Yonkers<< 4/23 post. If your Lease says SHs OR their children, etc., the children can live there alone. If it says SHs AND their children, the SHs must live there at the same time - but if SHs haven't lived there at the same time you've set a precedent, trying to prevent this in future will be near impossible, and courts most likely wouldn't rule in your favor on this.
Anonymous -- If your mgmt and board don't care or do anything about sublets, you have no sublet fees, and you have a lot of residents you don't know, you have to replace your board with SHs who will take remedial action. As long as you have a board that does nothing to correct these problems, nothing will change. Also, mgmt works for the board/coop and if mgmt is as negligent on this issue as your board is, a new board that will set things right should also change the mgmt company.
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We have been told that 90% owner occupied is considered a good investment. The reasonsing behind this is that live-in owners will vote FOR improvements and care about the daily maintance of the Building. And since they are not making a profit, as are subletters, they care more about keeping the cost down..IE: Maintance...
You may want to consider substancially raising sublet fees, not only to discourage subletters,,, but to make money for the building.
VP
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