Page 6 - CooperatorNews New York June 2022

6 COOPERATORNEWS — JUNE 2022 COOPERATORNEWS.COM CooperatorNews.com From COOPERATORNEWS.COM Pied-a-Terre…or Thinly Disguised Airbnb? Co-ops Face a Wave of Pandemic Subletting BY COOPER SMITH The Open House Returns The New Normal is Virtual + Personal BY A.J. SIDRANSKY As spring arrives and the COVID pandemic (hopefully) continues to wane in NYC, We also consider what the seller wants. If the seller wants masks to be worn during life feels like it’s beginning to return to some semblance of normal—including in the a viewing, we require masks. The majority of the time, buyers are masked and show real estate industry. One sure sign is the return of the open house, long a mainstay of proof of vaccination. There’s no limit on the number of people in a viewing party com- apartment sales that all but disappeared from the landscape these past two-plus years. ing in at any given appointment.” The open house is back, albeit in a slightly altered state. Altered for Safety Pre-pandemic, the open house was a Sunday staple in New York City real estate, sellers to the return of the open house in its current incarnation. “There’s no resistance providing brokers and their sellers a spotlight to capture potential buyers. Interest- ed purchasers could spend an afternoon visiting apartments, comparing properties does seem to be some hesitance to traditional open houses, however. Before COVID, and prices. To the delight of sellers (and brokers on commission), a covetable offering Dixon says that most sellers welcomed a busy, lively open house with lots of viewers would often ignite a bidding war between motivated buyers. Nothing sells better than and offers. “Now,” he says, “they prefer a more controlled environment. And a lot of the feeling that you may get outbid by the anonymous couple measuring the closets that shift seems to relate to their neighbors. Sellers understand that their neighbors while you watch. While the dangerous realities of the pandemic erased the possibilities of open hous- es, they are returning—with minor changes. Enter the Open House By Appointment, or OHBA. Benjamin Dixon, an associate broker with Douglas Elliman says, “Open houses are back, but mostly as ‘open-house-by-appointment.’ There’s only one viewer likely remain with us, no matter what future plot twists the pandemic may throw at at a time, sometimes two, and you need an appointment for a specific time. We had one us. “Virtual tours and video previews are a permanent part of the process now,” notes this weekend, with 10 viewers booking 15-minute appointments each.” The rules are fluid, explains Dixon, especially with evolving COVID guidelines. “We follow REBNY guidelines,” he says, “and their guidelines are based on state guidelines. Seller Reception On the seller side, Dixon reports that there is little if any hesitancy on the part of to open houses by appointment, because it’s a controlled, private showing.” There still don’t want a lot of unidentified foot traffic in the building. People are still concerned about the potential for viral spread.” Permanent Changes While open houses are making a comeback, new methods of showing property will Dixon. While it’s unlikely that most buyers would be comfortable closing on an apartment continued on page 7 Every co-op in New York City has its own personality and ‘vibe,’ depending on its age, neighborhood, resident demographics, and board engagement—but one thing that’s consistent across just about every co-op community are the typically stringent rules and regulations around subletting. In short, subletting is frowned upon in co-ops, and often prohibited entirely. Those rules have been severely tested over the last several years, how- ever—first by the rise of homesharing platforms like Airbnb, and more recently by the COVID-19 pandemic. Sometimes, these two seismic forces reinforce each other, causing headaches for boards and residents alike. Airbnb Airbnb changed the way people all over the world travel. With hotel rates skyrocketing internationally and stagnant wage growth making it a challenge for homeowners of all stripes to keep up with rising housing costs, the ‘sharing economy’ became a way for all kinds of homes in all kinds of places to become a side business for their owners. If your child was off to college, why not rent out their room for a few days or weeks a month to bring in a few extra dollars? Maximization of use! While homesharing was embraced by millions of apartment owners and shareholders, in many cities—including New York—both the mayor’s office and co-op and condo boards quickly saw the downsides of short-term rentals—to the rental market itself, as well as to the overall quality of life in multifamily buildings. While condo and HOA boards are pretty limited in what they can do to curb owners’ participation in homesharing, co-op boards have far more power to control their premises. Many viewed Airbnb and similar platforms as a form of illegal sublet, and outlawed them in their buildings from the start. COVID-19 The arrival of the COVID pandemic brought about enormous change to urban living, particularly in New York, which of course was hit early, and hit hard. The early months of the pandemic saw the exodus of thousands of city residents. Many retreated to their continued on page 7