Can I charge more in Manhattan to subtenants?
Hello,
I'm taking a three-bedroom apartment in Manhattan, and would like to sublet two of the three rooms out. If the lease is $3,000/month, can I charge subtenants $1200/month for partially-furnished bedrooms? I'm not trying to make a profit, more just offering a service for three months at a time. I would include a bed, desk, table, chair, lamp, hangers, and dresser (which all cost an initial outlay).
There are articles online that mention not being able to sublet whole places for more rent than what is on the main lease, but there's no info about subletting rooms in a place one lives in. The articles say that a maximum rent increase of 10% is allowed, but only for furnished apartments. My broker friends say this only applies to rent-controlled places.
Feeling confused. Thanks for any information.
I was a broker in Brooklyn for a few years. Every lease that I negotiated included a "no sublet" clause. I've never seen it enforced though. Couple suggestions/recommendations to consider:
1) I'd recommend charging a heavy security deposit. And upcharging rent a bit for your protection. Short term leases - let alone sublets - carry a premium. I've heard the market has been at it's highest the last 6 months, so I don't think you'll have any shortage of opportunity.
2) Talk to your broker friend and ask him if he has any sublet agreements he can share with you...they're likely not enforceable, but at least it sets the tone with your tenant.
3) AND most importantly, have your broker vet and qualify your prospective tenants/applicants. Even have HIM show your apartment. Take him to lunch for the favor, it'll probably save you headaches and money.
If you need Manhattan-specific brokers and another outside firsthand opinion, DM and I'm happy to share some contacts.
Since you’d be subletting without the landlords approval, there’s no real limits to what you charge. I agree with Joshua that you should definitely charge a premium and get a good security deposit. The price all depends on the neighborhood and the apartment. I’m a broker in Manhattan and would be happen to talk more in detail with you. DM me.
Thank you both; great advice. I DO have written permission to sublet from the landlord, typed into the lease, so no worries there. So far, it's working fine.