What Are Condops? A Hybrid Option for Flexible NYC Buyers
While few buyers begin their search specifically looking for a condop, many become open to them once they see the potential benefits—especially around subletting flexibility or pricing relative to condos.
In a city where co-ops and condos dominate the residential market, condops remain one of the least understood—and most overlooked—property types. But for savvy buyers looking for more flexibility without the price tag of a condo, a condop might offer the best of both worlds.
These hybrid buildings combine elements of both co-ops and condos, and while the structure can be confusing at first glance, the benefits often appeal to buyers seeking more lenient subletting rules, lower purchase prices, or creative ownership structures. If you're navigating NYC's complex housing landscape and wondering whether a condop could be the right fit, understanding how they work is the first step.
1. Co-ops vs. Condos vs. Condops: The Basics
Before diving into condops, it’s important to understand how they compare to the more familiar co-op and condo ownership models.
Co-ops are owned by a corporation, and buyers purchase shares in the building rather than owning real property. They’re known for strict board approval processes, subletting restrictions, and higher down payment requirements.
Condos offer individual ownership of a physical apartment, more flexible financing options, and more lenient rental policies—but usually come with a higher price tag.
Condops sit somewhere in between. Legally structured as a condominium but operated internally like a co-op, condops offer a hybrid experience that can be especially appealing in specific buyer scenarios.
2. What Is a Condop?
At its core, a condop is a building that has been divided into condo units—typically separating the residential units from commercial or retail spaces. The residential portion is then owned and operated by a co-op corporation. As a result, the residential units are governed by co-op rules, while the overall building remains a legal condominium.
This structure was originally developed in the 1980s to allow developers to retain ownership of retail/commercial space while offering residential units in a co-op format. Today, condops still exist—mostly in Manhattan—and some offer more flexibility than traditional co-ops, depending on the building's specific house rules.
3. Why Some Buyers Seek Out Condops
For buyers who want greater flexibility, often at a lower price point than condos, condops can offer several potential advantages:
More lenient subletting rules than traditional co-ops
Lower purchase prices than comparable condos
Creative ownership structures—sometimes appealing to investors or international buyers
Lower monthly maintenance fees in some cases, compared to full condos
Not all condops offer the same level of flexibility, but buildings with more modern or investor-friendly bylaws can open up options that aren't typically available in classic co-ops.
4. Subletting and Use Flexibility in Condops
One of the most attractive features of certain condops is more lenient subletting policies. While traditional co-ops often cap subletting at two or three years, many condops allow longer sublet terms—or even unlimited subletting after a few years of ownership.
This flexibility makes condops particularly appealing to buyers who plan to relocate in a few years, or those who want to rent out their unit as a source of income. That said, each building sets its own rules, so buyers should review the proprietary lease and sublet policy carefully with their attorney and agent.
5. Monthly Costs: How Condops Handle Taxes and Fees
Another key difference between condos and condops lies in how monthly carrying costs are structured. In condos, owners typically pay two separate charges: monthly common charges for building maintenance and individual property taxes paid directly or through escrow.
In condops, by contrast, monthly costs usually follow the co-op model: owners pay a single monthly maintenance fee that covers both building expenses and their proportional share of the property’s taxes. While this bundled format can be simpler, it also means that you won’t see a separate property tax line item—something that’s important to factor in when comparing listings across property types.
6. Financing a Condop Purchase
Because condops are legally condos but functionally co-ops, financing can be a gray area. Some banks treat condops like condos, while others apply the same stricter underwriting criteria they would use for co-ops.
For this reason, it’s important to work with a lender familiar with NYC condop structures, and to clarify early whether the building is on their approved lending list. Your agent can also help you evaluate whether the building’s financials and board policies align with your goals.
7. The Inventory Challenge: Why Condops Are Rare
Condops make up a very small portion of the NYC residential market. Most are older conversions from the 1980s and early 1990s, and very few new condop developments are entering the pipeline today. As a result, they rarely appear in large numbers during a search—and when they do, it’s typically within specific Manhattan neighborhoods or mixed-use buildings.
Most buyers I work with aren't actively seeking condops—but many who are looking for condos are open to them, particularly when subletting flexibility is a priority. While condops may involve a board application process, buyers often weigh that against the ability to rent the unit down the line—something that’s more limited in classic co-ops.
Because these buildings often fly under the radar, buyers who remain open to condops can sometimes find hidden value: less competition than a full condo, and more flexibility than a traditional co-op.
8. Important Questions to Ask When Considering a Condop
Before purchasing in a condop, make sure you understand:
Does the building follow co-op or condo sublet rules?
Are there flip taxes or board restrictions?
How much commercial space is retained, and who manages it?
Is the building self-managed or managed by a professional company?
How does your lender classify the property?
Getting answers to these questions early can prevent surprises later in the transaction.
9. The Role of Your Real Estate Agent
Condops aren’t always easy to spot—and understanding their structure can be tricky. An experienced NYC agent can help you identify these rare properties, interpret their rules, and coordinate with lenders and attorneys to ensure the transaction goes smoothly.
While few buyers begin their search specifically looking for a condop, many become open to them once they see the potential benefits—especially around subletting flexibility or pricing relative to condos. Your agent plays a key role in helping you assess whether a condop aligns with your goals, and in navigating the nuances of this hybrid ownership model.
With the right guidance, you can make informed comparisons and confidently decide if a condop deserves consideration in your broader NYC home search.
Related Resources and Insights
Curious if a condop could be the right fit for your next NYC purchase? Let’s connect. I’ll help you evaluate building options, understand key distinctions, and navigate your purchase with clarity and confidence.