I’m curious! What is a fair sublet fee for a small Brooklyn co-op? Is it just a
percentage of the maintenance, or decided upon by some other formula?
Michael Manzi, an attorney at Balber Pickard Battistoni Maldonado & Van Der Tuin, explains that, “Co-ops calculate their sublet fees in a variety of ways. Some charge a
percentage of the maintenance; some charge a percentage of the rent that the
tenant/shareholder receives from the subtenant; some charge a month’s maintenance; and others charge a flat fee per month or year. The fee should
not be confiscator. The co-op’s managing agent, if it has one, should be consulted as to what other co-ops in
the area of similar size are doing.
“In establishing a sublet fee you should be aware that, although sublet fees are
common, the legality of such fees is a matter of dispute. Many commentator are
of the opinion that in order to be enforceable a sublet fee must be provided
for in the co-op’s proprietary lease. We suggest that your lease be amended to provide for the
fee and that your bylaws be amended to reflect the fee as well.”