Sublet and leasing fees can be an important revenue generating and policy setting tool for co-op and condominium boards. Such fees can provide revenue to increase the building's reserves, offset increases in maintenance charges or finance capital expenditures, while also discouraging non-owner occupancy within a building. This can help ensure that owner-occupancy rates do not fall below requirements set by mortgage lenders which may also depress the value of apartments.
Such fees may also reduce the transient rental population in a building, which may be less inclined to treat the apartment, neighbors and the building with the same level of care as one would expect from an owner-occupant who has an investment in the building and resides there. Further, the imposition of substantial fees may deter apartment owners from renting their apartments and effectively limit rentals.
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