I own a co-op for many years. I have been subletting it for the past five years and now I am ready to sell. My problem is that the market is slow and it is taking longer than I anticipated to find a buyer. My tenant is willing to stay until I sell but the board will not pro-rate the sublet fee that our building charges. Should I let the tenant leave at the end of the lease, or pay the hefty fee and forfeit if I sell soon after? Signed, Perplexed Owner
I understand your concern but life never quite works out in perfect time frames. If you let your tenant go at the end of the lease you may be liable for many months of maintenance. If you are lucky enough to sell right after the lease has ended you will be ahead of the game. But, you do not know what will happen. Even if you do find a buyer, it can take a while to close the deal.
I would be inclined to allow the tenant to stay until you sell. This will still give her plenty of time to find a new place and you will not be paying maintenance on an empty apartment. Of course, you can easily do the math and see which option makes the most financial sense.
Some buildings charge a sublet fee based on the number of shares you own. Others might charge one month’s maintenance. I certainly understand that the board will not allow you to pro-rate the fee, which I assume is for a one-year lease. It would be an accounting fiasco and set a precedent that would be unwieldy at best. I know it’s financially painful, but the rules are the rules. Just chalk it up to another owner’s expense like the flip tax and broker fee. You already must know that nothing in this city is cheap or easy.