Renting out coops

[Kimberlie Torres]

Anyone with any insight on renting out coops if the board approved it? The tenets must meet their criteria. Specifically looking in Queens. I know cash flow isn't much but I'm more interested in appreciation overall. 

[Abel Curiel]

Hello @Kimberlie Torres

There aren't many sublet-friendly co-ops in Queens but if you're in one, hold onto it as long as it makes sense for you. 

Sublet-friendly co-ops make up about 1/4 of all co-ops and usually the board has specific requirements for tenants. Sometimes, boards can be more strict with tenants than most other landlords in New York. 

Co-op tenant requirements have pros and cons for New York real estate investors...
Pro: You're more likely to get a high-quality tenant by having strict guidelines.
Con: It could take you longer to fill the vacancy.

Overall, investing in co-ops is tricky because your cash flow is subject to things that are out of your control i.e. the community within the co-op, monthly maintenance charge increases, co-op board decisions affecting residents and shareholders, etc.

If you're hoping for appreciation, I'd recommend using StreetEasy. On StreetEasy, you can note sale price trends for sold apartments within the co-op over the last 10 years or so.

All the best!

Abel