RENT OWN SELL
Newyork
RENT OWN SELL
Newyork
Coop stands for Cooperative. When you buy a coop, you are not actually buying a property, instead, you buy shares in a corporation that owns the building. While in a condo, you actually buy the unit or house.
Buying a coop in NYC can be tricky and complex, but we are here to help you. Our guide will give you everything you need to know about co-op recommendation letters and co-op board reference letters. We’ve also included some coop reference letter samples that you can add to your application package.
The process to purchase a co-op is also a bit different. Even if you’re rich, you still have to prove that you’re qualified to buy a coop in New York City One of the many coop requirements is a coop reference letter. The letter can come from anybody who can vouch for your good characters, such as colleagues or a friend.
Board of Directors
[Address of the coop]
Dear Member of the Board,
With immense pleasure, I am writing this letter on behalf of (applicant’s name), who is interested in buying a co-op apartment in your building.
I had a long relationship with (applicant’s name) spanning over X years. I feel privileged to have known him/her. Have always found him/her to be a responsible and trustworthy person. He/she is known for his/her generosity of spirit and warmth of character. I can vouch that he/she has been the kind of person who always keeps commitments and never fails financial obligations. He/she is always eager to help out his/her friends whenever they need assistance or counseling. I am one of the people who has relied upon his/her friendship often through all these years.
(Applicant’s name) has deep roots in the local community. He/she has been here since [insert year] – first as a student at [college name], where we initially met and continued for several years since graduation. He/she participates in community activities and also helps as a local volunteer with [include program(s)].
During the years I’ve known (applicant’s name), and as a New York coop owner myself, I have fairly extensive experience in who makes a great neighbor and who doesn’t. (Applicant’s name) would make a great addition to our coop family.
Please feel free to contact me if you require any additional information.
Sincerely,
[Name]
[Address]
[Contact Info: Email/ Number]
You need to understand why you need to submit reference letters, which is to advocate your case as the right candidate to own a coop. If you fail to do so through your reference letters, it may weaken your application.
In Addition, Keep The Following Things In Mind:
Typically, the coop board will request 3 to 6 personal reference/business letters per applicant. In addition, a coop board in NYC will also require a reference letter from an employer and a landlord. These are the general requirements; exact requirements may vary depending on the coop building.
The general rule is that only co-op boards require reference letters. But many condo buildings also ask for reference letters to complete the purchase process. However, the coop application process is more rigorous than what is required for a comparable condo building.
There are no specific requirements for the length of a reference letter. It largely depends on the information you plan to include. However, the suggested length is anywhere between 3 paragraphs to a page and a half.
A letter longer than that is likely to lose its effectiveness, and a letter shorter than 3 paragraphs may set off red flags with the board. When considering the length of a reference letter, focus on the quality of the information rather than the quantity of the content that’s included.
The main takeaway is that coop board reference letters should be concise and insightful and reflect everything you have to tell as it relates to becoming a coop owner.
It may create confusion for applicants, but if your family member or friend also happens to be your landlord, that is not something to worry about. If you are renting an apartment from your family member or friend, ask them to give you a coop recommendation letter that addresses how much rent you pay, the length of time you’ve lived there, whether you pay rent on time, and the address of the property you are renting.
If you are not paying rent, consider including information about how long you have been living at the property, and the address, and explain why you are not paying any rent. This will count as a landlord reference letter.
Whether coop reference letters need to have original signatures, or if they can be submitted with a copy of the letter depends on the building’s purchase application requirements. If the instructions call for original reference letters, you should only submit the original documents. If there are no clear-cut instructions, it is better to get clarification of the requirements from the buyer’s agent before you submit your application.
There Are Four Main Types Of Coop Reference Letters:
We’ll explore each more in-depth below.
Choosing someone to write a coop recommendation letter is a big decision, especially if you’re using a personal reference. It is crucial to choose people you know well. Generally, close friends with whom you’ve known for a long time fall in that category.
In a personal reference letter, you should expect that the person provides the reader with a glimpse of how they met you and share a few stories that reflect the positive side of your personality. Their letter should also focus on the goodness of your character and trustworthiness. If your reference is already a coop owner and can vouch for why you would be a good neighbor, that will look even better.
Make sure to provide a template or sample reference letter if the person you’ve asked is writing such a letter for the first time.
It may not always be the case, but coops may request a bank reference letter. This letter should be provided by the private banker or the bank representative that oversees your account. With your permission, the bank can confirm that your account is in good standing. The letter also highlights the length of time you have had a relationship with the bank.
The landlord reference letter is essential in that it tells how often you paid your bills consistently and on time. Make sure you include information such as the length of time you were a tenant in the apartment, the address of the apartment, and how much you were paying as a tenant. Ask your landlord to add in some nice words about you, such as how you were as a tenant and how well you took care of the property.
When it comes to professional or business reference letters, there are typically two types that an NYC coop may request: general professional reference letters and employer reference letters.
An employer reference letter is fairly straightforward. You may ask your HR department to provide you with an employer reference letter. This letter includes basic information such as your current job title, confirmation of your annual base salary, duration of your employment with the company, and a brief statement confirming that you are an employee in good standing with the company. This letter will reflect stability in your job or profession and confirmation of your income.
General professional reference letters are very similar to personal reference letters. The only difference is that you ask for a personal reference letter from a friend while you ask a business colleague for a professional reference letter. It also highlights your personality traits and gives insight into your personality in the corporate community. If you happen to have known your professional reference for a long time, ask them to include that information in their letter. Doing so can show your ability to build long-standing relationships.
Besides all the good words that people will write about you, make sure to include your reference contact information in the letters, especially if it feels like the coop board may counter confirm the facts mentioned in the letters or ask for any additional information.
It might seem intimidating to ask your colleagues and friends to vouch for you. But asking for a coop reference letter doesn’t have to be a tough task. To help ensure that things go smoothly, follow the guidelines discussed above and start the process early.
Related Article:
Reasons Why Coop Applications Can Get Deny
How to Buy a Condo or Coop Apartment in New York City
