Owner guide
Renting Out a Condo vs. a Co-op in NYC
Both need the building’s cooperation, but the rules, the powers of the board and the documents are different.
Two legal structures
A condo owner owns real property: the apartment and a share of the common elements. A co-op owner owns shares in a corporation that owns the building, and holds a proprietary lease for the apartment. That difference explains why boards have more control in co-ops.
Condos: leasing rules and the right of first refusal
Condo bylaws commonly regulate leasing: minimum term, an application with fees, and the documents the tenant must provide. Many give the board a right of first refusal: the board may take the lease on the same terms, and if it does not act within the period set by the bylaws, the right is waived. In practice, boards rarely exercise it, but the waiver is a step to schedule. Read your own bylaws: the period and conditions differ from building to building, and courts enforce them as written.
Co-ops: subletting under the proprietary lease
New York’s statutory right to sublet (Real Property Law § 226-b) does not apply to co-op proprietary leases. A co-op owner’s ability to sublet depends on the proprietary lease, the bylaws and the board’s policy. Common conditions include:
- a requirement that the owner has lived in the apartment for a period before subletting;
- a limit on how many years out of a period the apartment may be sublet;
- a sublet fee, sometimes a percentage of the rent;
- a full application and often an interview for the subtenant.
Some co-ops do not allow sublets at all. Ask the managing agent for the written policy before you invest in preparing the apartment.
Documents to gather
- Condo: declaration, bylaws, rules and the current leasing application
- Co-op: proprietary lease, house rules and the written sublet policy and application
- Fees the building charges for applications, moves and processing, and who is expected to pay them
- Move-in rules: elevator booking, insurance certificates, deposits
- Any assessment or work planned that could affect a tenant
Townhouses and other buildings
A townhouse or a small building without a board has no approval step, but other questions come up: who maintains the boiler, the roof and the garden, how utilities are split, and which notices apply to buildings with three or more apartments.
This guide explains common steps for owners. It is not legal or tax advice; for a decision about your lease, your building documents or your taxes, consult an attorney or tax professional.
Sources
Checked 2026-11-09. Rules change: confirm the current version before relying on them.