{"id":16599,"date":"2022-12-07T15:00:00","date_gmt":"2022-12-07T20:00:00","guid":{"rendered":"https:\/\/www.renthop.com\/content-manager\/?p=16599"},"modified":"2023-07-22T11:36:24","modified_gmt":"2023-07-22T15:36:24","slug":"renting-in-a-condo-or-co-op","status":"publish","type":"post","link":"https:\/\/www.renthop.com\/blog\/renting-in-a-condo-or-co-op\/","title":{"rendered":"Renting in a Condo or Co-op: Pros and Cons"},"content":{"rendered":"\n

Many people think that you can only live in a condo or co-op if you’ve purchased the unit. However, there are plenty of condos and co-op units that can by rented by lucky individuals who want apartments that are, usually, a bit more luxurious without paying a mortgage. There are benefits and drawbacks to renting in these properties, but they can be great housing options depending on your circumstances. So what are the pros and cons of renting in a condo or co-op? Does renting work differently depending on which type of building you want to live in?<\/p>\n\n\n\n

Condo vs. Co-op<\/h2>\n\n\n\n

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 of a building. The unit itself becomes private property, but the building is owned by a person or corporation that runs the maintenance and amenities. Condo owners enter a deal with building owners that allow them to use the services the building provides, but the only property owned by a tenant is the apartment itself. This means that tenants can make alterations to their home, as they are ones who benefit the most from remodels and updates.<\/p>\n\n\n\n

Co-op unit owners, on the other hand, don\u2019t technically own their apartment. Rather, they become a shareholder in the complex they live in. Co-ops are owned and managed by the residents who live there. The people in charge of decision making are the co-op board, a group of tenants elected to lead the complex in any monetary and maintenance decisions that have to be made. As property values go up, all the residents of the building make money.<\/p>\n\n\n\n

What Does This Mean For Renters?<\/h2>\n\n\n\n

Essentially, this changes who the renter has to answer to when it comes to issues in the building. If a renter wants to live in a condo, the condo owner and\/or the building owner simply has to approve it, write up a lease agreement, and then act as the landlord for that sole apartment. For co-ops, renters usually have to be approved by the board members before moving in, which can mean a more in-depth background check and even an interview. Going through a board interview as a renter won’t be as difficult as going through one as a buyer<\/a>, but it is yet another bump in the already tiring rental process. There are rare instances where renting in a condo requires board approval, but it\u2019s less common and, usually, less tedious. To summarize, where your rent money goes is the biggest difference, as it’ll determine who exactly you’re renting from and who you direct your questions and rental issues to. <\/p>\n\n\n\n

Pros of Renting in a Condo or Co-op<\/h2>\n\n\n\n

Nicer Homes for the Same Price<\/h3>\n\n\n\n

As rental prices soar, it can be hard to find places that are worth the money you\u2019re spending. However, if you\u2019re seeking a long term living situation, signing on with a condo or co-op might be your best bet. Rental prices will be competitive with the surrounding neighborhood and you\u2019ll get access to all those sweet amenities, as well as a dedicated staff. Appliances and features are usually nicer in condos as well. Co-ops can be a bit more of a gamble in this department, but generally they are still nicer than a large portion of rental buildings.<\/p>\n\n\n\n

You Might Be Able to Buy Your Home<\/h3>\n\n\n\n

This is a more likely case for those renting in co-ops, but many buildings in the city have rent-to-own policies that can send you on the path to owning property in NYC. As long as you\u2019re a good tenant, are friendly with your neighbors, and have always made payments on time, many co-op boards will be happy to sell to you as opposed to a brand new owner who they don’t have any connections with. It\u2019s easier to select a person they already trust than it is to find a buyer amongst the many strangers of NYC.<\/p>\n\n\n\n

Condos and Co-ops are Well Maintained<\/h3>\n\n\n\n

One of the worst parts of rental buildings in NYC is that most are pre-war buildings that haven\u2019t had many upgrades made to them. Condos and co-ops, however, are usually nicer. Their lobbies have doormen, their amenities receive regular maintenance, and their energy consumption is usually way greener than rental buildings. These apartment complexes have more money invested into them, so they can afford some of the more luxurious things in life, which you will have access to should you rent a home in one of these buildings.<\/p>\n\n\n\n

You\u2019ll Be Part of a Community<\/h3>\n\n\n\n

Co-ops, especially, have a great sense of community to them because everyone in the building is invested in its future. While condos don\u2019t have the same luxury, the connection is still a powerful one since people aren\u2019t moving in and out of the building as often. You really get to know your neighbors, which is a great way to get ahead in the building’s political structure, meaning you could eventually become a owner yourself and even a board member. Plus, it\u2019s just nice to feel like you live in a neighborhood. NYC can be weirdly lonely considering the size of its population. Living in a condo or co-op can really make you feel like you\u2019re surrounded by like minded individuals.<\/p>\n\n\n\n

Cons of Renting in a Condo or Co-op<\/h2>\n\n\n\n

You\u2019re Not Equals With Owners<\/h3>\n\n\n\n

As a renter, you don\u2019t have the same power or authority as other people living in your apartment complex. You have legal tenant protections, sure. But the people who actually own property or stock in the building will always have their needs met before you. They invest more time and energy into the building, after all. This is especially true in a co-op, where the tenants own the building. As a renter, you have no say in decisions regarding building maintenance or rules, but you must still adhere to whatever is decided.<\/p>\n\n\n\n

There are Politics Involved<\/h3>\n\n\n\n

This is, again, a bigger issue with co-ops than it is with condos. However, in either scenario, there are usually power dynamics between owners. Disputes amongst neighbors could quickly become your problem, especially if you want to buy your home eventually. Choosing a side is never a good game, but people might force you to make a choice and hold your home, future investment, ransom if you don\u2019t take up arms with them. It can be a needlessly annoying aspect of renting in a condo or co-op, so it is best to try and find a place where most people get along.<\/p>\n\n\n\n

It\u2019s a Longer Application Process<\/h3>\n\n\n\n

Renting in a condo or co-op usually means that you have to get approval from some hire-ups, whether that be a corporation, building owner, or co-op board. They are also looking at other applicants for that building, along with dealing with building issues. Worse case, you could be waiting weeks for an answer to your application and get a rejection with no explanation. This can be pretty tedious when it comes to finding a place to live, so make sure you have the time and money required to make this happen.<\/p>\n\n\n\n

You Might Not Be Living There For Long<\/h3>\n\n\n\n

While many buildings have rent-to-own policies, many more buildings set strict limitations on how long renters can live on the premises. If a tenant is renting their home, for example, they might only be able to do so for a year or two. Every building has different rules regarding this subject, so it\u2019s best to look into these situations ahead of time and figure out what will work best for you.<\/p>\n\n\n\n

Things to Keep in Mind When Renting in a Condo or Co-op<\/h2>\n\n\n\n

First and foremost, always check to make sure you are legally renting the premises. Condos and co-ops have rules when it comes to renters and sublets. You don\u2019t want to end up in an apartment that an owner wasn\u2019t allowed to rent in the first place. You could be evicted and have to start your apartment hunt all over again. You still have tenant rights if this occurs, but it\u2019s still best to avoid this situation altogether.<\/p>\n\n\n\n

Second, when negotiating your lease, see if you can rent long term, or if you have the opportunity to purchase the home someday. Some buildings are fine with long term renters and others won\u2019t be. It all depends on who owns the buildings and what the rules are, so it\u2019s important to find a place that is flexible and fits within your plans for the future. It would also be a good idea to find out what the average rent in the neighborhood is so you have more knowledge to bring to lease negotiations.<\/p>\n\n\n\n

\n\n\n\n

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-family or multi-family home. This is a different way to rent, but it\u2019s a strategy that can land you an awesome unit with added building amenities. Depending on your situation, renting in a condo or co-op building might not be the best option for you. However, if you\u2019re seeking to one day own a home, want to live in a luxury building, and want to live in a great community, then condos and co-ops might be just what the doctor ordered. It\u2019s definitely worth looking into. <\/p>\n","protected":false},"excerpt":{"rendered":"

Many people think that you can only live in a condo or co-op if you’ve purchased the unit. However, there are plenty of condos and co-op units that can by rented by lucky individuals who want apartments that are, usually, a bit more luxurious without paying a mortgage. There are benefits and drawbacks to renting […]<\/p>\n","protected":false},"author":3,"featured_media":16603,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[150],"tags":[],"yoast_head":"\nRenting in a Condo or Co-op: Pros and Cons - Real Estate Topics, Tips, and Guides<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.renthop.com\/blog\/renting-in-a-condo-or-co-op\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Renting in a Condo or Co-op: Pros and Cons\" \/>\n<meta property=\"og:description\" content=\"Many people think that you can only live in a condo or co-op if you’ve purchased the unit. 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