- The cooperative corporation owns the building and the tenant (unit owner) owns shares of stock (assigned according to size and type of apartment).
- Co-ops are governed by a board of directors (resident shareholders) that determines the requirements for applicants.
- The co-op application process is quite lengthy and may require flexibility in terms of occupancy date
- Renting in a co-op building is referred to as subleasing. Prospective subleasors are subject to the same application process as someone wishing to become a shareholder.
- Applicants must provide financial and social information to the Board of Directors and will also be required to attend a personal interview.
- The Board of Directors may accept or reject applications without furnishing a reason.
- There are both modern and older co-op buildings, however, most prewar buildings are co-ops
- Cooperative ownership also involves a monthly maintenance fee (for building upkeep), preservation of common areas, staff salaries, etc.) that is based upon the number of shares assigned to a particular owner. The monthly maintenance charge also encompasses an owner's share of building real estate taxes. This portion of the maintenance is tax deductible.