Renting in a Condo or Co-op: Pros and Cons
Many people think you can only live in a condo or co-op if you have purchased the unit. However, there are many condos and co-op units that can be rented by lucky people who want apartments that are, usually, a bit more luxurious without paying a mortgage. There are pros and cons to renting in these properties, but they can be great housing options depending on your situation. So what are the pros and cons of renting in a condo or co-op? Does renting work differently depending on the type of building you want to live in?
Condominium vs. Cooperative
First and foremost, condos and co-ops work a little differently. They both allow you to own and invest in property within a building complex, but they do so in different ways. Condos allow people to own a unit inside a building. The unit itself becomes private property, but the building is owned by a person or company that manages maintenance and amenities. Condominium owners enter into an agreement with building owners that allows them to use the services provided by the building, but the only property owned by a tenant is the apartment itself. This means that tenants can make changes to their home because they are the ones who benefit the most from renovations and updates.
Co-op unit owners, on the other hand, don’t technically own their apartment. Rather, they become a shareholder in the complex in which they live. Co-ops are owned and managed by the residents who live there. The people in charge of decision-making are the cooperative’s board of directors, a group of tenants elected to lead the complex in all monetary and maintenance decisions that need to be made. As property values increase, all residents of the building earn money.
What does this mean for tenants?
Essentially, this changes who the tenant must answer to when it comes to issues in the building. If a tenant wants to live in a condo, the condo owner and/or building owner need only approve it, write a rental agreement, and then act as the landlord for that single apartment. For co-ops, tenants usually need to be approved by board members before moving in, which can mean a more thorough background check and even an interview. Passing an interview with a board of directors as a tenant will not be as difficult as passing one as a buyer, but it’s yet another bump in the already tiring rental process. There are rare instances where renting a condo requires board approval, but this is less common and, generally, less cumbersome. To sum up, where your rent money goes is the biggest difference, as it will determine exactly who you rent to and who you address your rental questions and issues.
Benefits of Renting in a Condo or Co-op
Better houses for the same price
As rental prices skyrocket, it can be difficult to find places that are worth the money you spend. However, if you’re looking for a long-term living situation, signing with a condo or co-op might be your best bet. Rental prices will be competitive with the surrounding neighborhood and you’ll have access to all of these enjoyable amenities, as well as a dedicated staff. Appliances and features are generally nicer in condos. Co-ops can be a bit more of a gamble in this department, but in general they’re still nicer than a lot of rental properties.
You might be able to buy your house
That’s a more likely case for those renting in co-ops, but many apartment buildings in the city have rent-to-own policies that can send you down the road to homeownership in New York City. As long as you’re a good tenant, are friendly with your neighbors, and have always made your payments on time, many co-op boards will be happy to sell you, as opposed to a brand new landlord who doesn’t. . connections with. It’s easier to select someone they already trust than to find a buyer among the many strangers in NYC.
Condos and co-ops are well maintained
One of the worst things about rental properties in New York is that most are pre-war buildings that haven’t seen many upgrades. Condos and co-ops, however, are generally nicer. Their lobbies have doormen, their equipment benefits from regular maintenance and their energy consumption is generally much greener than that of rental properties. These apartment complexes have more money invested, so they can afford some of the most luxurious things in life, which you will have access to if you rent a house in one of these buildings.
You will be part of a community
Co-ops, in particular, have a great sense of community because everyone in the building is invested in their future. Although condos don’t have the same luxury, the connection is still strong since people don’t come in and out of the building as often. You really get to know your neighbors, which is a great way to advance through the political structure of the building, which means you could eventually become a landlord and even a board member yourself. Plus, it’s just nice to feel like you live in a neighborhood. NYC can be oddly lonely given its population size. Living in a condo or co-op can really make you feel like you’re surrounded by like-minded people.
Disadvantages of Renting in a Condo or Co-op
You are not equal with the owners
As a tenant, you do not have the same power or authority as other people living in your apartment complex. You have legal protections for tenants, of course. But people who actually own property or shares in the building will always have their needs met before you do. After all, they invest more time and energy in the building. This is especially true in a co-op, where the tenants own the building. As a tenant, you have no say in decisions about building maintenance or rules, but you must always comply with whatever is decided.
There are politics involved
This is, again, a bigger problem with co-ops than with condos. However, in both cases there is usually a power dynamic between the owners. Conflicts between neighbors could quickly become your problem, especially if you want to buy your house eventually. Picking a side is never a good game, but people might force you to make a choice and keep your home, your future investment, your ransom if you don’t take up arms with them. This can be an unnecessarily annoying aspect of renting in a condo or co-op, so it’s best to try to find a place where most people get along.
It’s a longer application process
Renting in a condo or co-op usually means you have to get approval from certain tenants, whether it’s a corporation, building owner, or co-op board. They are also studying other candidates for this building, while dealing with construction issues. In the worst case, you could wait weeks for a response to your request and get a rejection without explanation. It can be quite a hassle when it comes to finding accommodation, so make sure you have the time and money to make it happen.
You might not live there long
While many buildings have rent-to-own policies, many other buildings place strict limits on how long tenants can live on the premises. If a tenant rents out their house, for example, they may only be able to do so for a year or two. Each building has different rules regarding this topic, so it’s best to review these situations ahead of time and figure out what will work best for you.
Things to Keep in Mind When Renting in a Condo or Co-op
Above all, always check that you are renting the premises legally. Condos and co-ops have rules when it comes to tenants and sublets. You don’t want to end up in an apartment that a landlord wasn’t allowed to rent out in the first place. You could be evicted and have to start your apartment search again. You still have tenant rights if this happens, but it’s always best to avoid this situation altogether.
Second, when negotiating your lease, see if you can rent long-term or if you have the option of buying the house one day. Some buildings are suitable for long-term tenants and some are not. It all depends on the owner of the buildings and the rules, so it’s important to find a venue that is flexible and fits into your plans for the future. It would also be a good idea to know what the average rent is in the neighborhood so that you have more knowledge to bring to lease negotiations.
Renting is how most people live in this city, and some renters end up renting in a condo or co-op apartment complex rather than a single or multi-family home. This is a different way to rent, but it’s a strategy that can get you an impressive unit with added amenities. Depending on your situation, renting in a condo or a co-op building might not be the best option for you. However, if you are one day looking to own a home, live in a luxury building, and live in a great community, then condos and co-ops might be just what the doctor ordered. It is definitely worth looking into.
