AboutMark Shemel Expertise I believe I can answer questions in the following sub categories with respect to New York City: Residential Brokerage, Landlord Tenant disputes, Any type of lease questions, any definition pertaining to residential real estate, any questions about property management, most questions about development, construction codes, and housing laws, questions about Section 8, HPD and government sponsored housing. Also corporate and short term housing questions.
Experience I am currently the President of Think Properties NYC, a residential brokerage firm in New York City. I am also President of National Property Management Group. We manage over 1000 Residential Units and 50 retail/commercial units, generally as tax payers or part of mixed use buildings. We handle project management, marketing, and rentals/sales of new construction properties as well.
Organizations The Real Estate Board of New York (REBNY), Boutique Brokerage Firm Alliance (President)
Publications New York Times, Real Estate Weekly, Wikipedia, Wiki-answers
Education/Credentials Undergrad: Union College
Degree: Bachelors Degree, Double Major Economics/French
Graduate: New York University
Degree: Masters of Science, Masters in Real Estate Development
Licensed Real Estate Broker in State of New York
Awards and Honors Undergrad: Phi Beta Kappa, National Honor Society, Magna Cum Laude
Past/Present Clients Oakwood Worldwide, JP Morgan Chase (for Relocation), and several other firms.
Question Hello Mark,
I am trying to rent out my studio (coop, in Brooklyn). I found a person who would like to rent my apartment. She filled out the application and submitted with all required documents. I just got a phone call from the managment telling me that the application was denied and the person can not rent my studio. I asked for a reason as to why she was denied a chance to rent, they did not give me any reason. She had a good credit history, good salary, everything was good as to what the board was requiring from the applicants. I am going to see a laywer. My questions is, how is it possible that they will not provide me with the reason. I am a shareholder, I own this studio, and as a shareholder I feel that I am entitled to be given a reason. What kind of law is there, that gives a right to coop board not to give me a reason for the denial? What if they discriminate based on age, race, or anything else? what if they simply don't like me? I need your advice. Thank you.
Answer Vadim,
Let's look at your situation first. Let's rule out a few things. I don't think that cooperative doesn't like you, though they may be working against you. If you were able to buy the coop and the board approved you originally, then it probably has nothing to do with you personally. What coops don't like are rental tenants. They want the person who owns in the building to want to live in the building. The cooperative structure and laws under which it operates provide it with the freedom to reject your tenants without providing a reason.
There are certain legal limitations on the rejections. Coops cannot refuse people because of race, ethnicity or color. Discrimination, however, can be difficult to prove. I have some suggestions and explanations that may help you better understand the situation.
First, I would make sure that the management specifically said they were rejecting the tenant. Sometimes, applications can be rejected by picky boards if they are not formatted correctly. Sometimes, it is just missing a document or is not in the right order. I have seen boards refuse applications because staples were used.
Second, there are other factors to consider with the cooperative. The coop is a corporation and you are an owner of that corporation. The shares you own give you voting rights. If you don't go to board meetings and vote each year, then your voting rights get proxied to another party, usually controlled by the board. By not being on your board, you are letting them make all decisions about the building. Boards consider your financial status as well as your tenant's status as a function of the financial health of the building. Suppose you rent your apartment for $1,000/month. Assume the board believes you would need 2000 per month to maintain your ability to pay the charges of the building, whether they know how much you have or not, they may decide that it would be too risky for cooperative as a whole.
In New York specifically, you will find more and more difficult boards, which is why I advise people never to buy coop unless they are absolutely sure they want to live there.
As for some advice for you. Before calling a lawyer, I would suggest finding out who the members of the board are and talking to them. As a shareholder, you do have that right. You have the right to speak to them and present your issues to them. If they repeatedly avoid you, you can talk to other owners about your issues and bring it to the next board meeting. Remember, they have to get elected, which requires votes of other owners. But if you take this route, I suggest keeping it quiet. If you threaten to get other owners to vote against them, they can take your apartment hostage until then, making your life very difficult. Sometimes, just talking to a board member is better.
I would also check a few other things. Boards can reject for a myriad of reasons. If your tenant is a musician or does something that might be considered working at home, she can be rejected on grounds of making noise or making money inside the building. Even if pets are allowed, they may not be allowed in sublets, so make sure she doesn't have a pet. Pick up a set of bylaws to your building. Read them thoroughly before taking this to an attorney, as picking a fight with a board must be substantiated by a lot of evidence.
