A stranger is renting a shareholder's parking space and sneaking into our co-op building. What can our board do?

Parking spots can be a huge perk at a New York City condo or co-op, but a nightmare for a building’s board when residents break the rules. Most buildings don’t allow residents to rent their parking spaces to strangers who don’t reside in the building because it presents an obvious security risk, said Jonharold Cicero, ​​a real estate attorney at DL Partners, which represents condo and co-op buildings throughout NYC.

“It’s fundamentally a safety issue,” Cicero said. “You don’t want random people walking in and out of your garage. The garage space can easily allow them access to anywhere in the building.”

Unfortunately, your board’s dilemma is not uncommon. Parking represents an oft-overlooked part of your building’s bylaws and house rules, and you’ll need to act quickly before this situation can escalate, said DL Partners real estate attorney Christopher Tarnok.

First, your board has to understand exactly what rule has been broken. As seasoned board members know, that means digging into your building’s bylaws and house rules. 

Most bylaws set forth rules for residents looking to rent out their parking spaces to others who reside in their building, while banning the ability to rent their parking to non-occupants, but your board needs to ensure that’s the case for your building, Tarnok said. (If it’s not, you may need to update your bylaws.) 

Next, you’ll want a seasoned legal team on your side to tackle dealing with this resident. Read on for the three steps your board and your building’s attorneys should take.

Contact the resident who is renting out their space

Your board, property manager, or legal team needs to notify the resident that they are breaking your building’s rules right away. Acting fast will help your board keep legal costs down and prevent the issue from escalating, Tarnok said.

“The first step is to try to resolve the issue by having the board or the building’s property manager reach out to the shareholder directly,” Tarnok said. “It’s crucial not to delay here.”

Of course, your board may want the building’s attorneys to contact the unit owner to avoid an uncomfortable run-in with a neighbor. “There’s nothing more awkward than writing a notice to a unit owner and then getting stuck in the elevator with that person,” Cicero said.

Plus, residents pay attention when it’s a lawyer contacting them, Cicero noted. He once worked with a board which didn’t tell him that a resident was in thousands of dollars of arrears for months. As soon as they told Cicero, he immediately sent a letter to the resident ordering them to pay. They immediately did—in full.

Have your attorneys send a formal letter to the resident

Your attorneys should treat this problem just like a monetary default, and send out a formal letter notifying the resident that they are breaking your building’s rules. That letter will reference the provisions of the bylaws or house rules that were violated, notify the resident of any fines they might owe, and provide them with an opportunity to cure the default. (Cure periods are usually outlined in the bylaws.)

It’s at this stage that a good attorney can make all the difference, especially if the resident is refusing to listen to your board, Tarnok said.

“We’ve certainly seen people ignore the board when they reach out, get confrontational with board members, and talk a big game, but the minute they receive a certified letter from a law firm, they immediately pay,” Cicero said.

Prepare to head to court, but don’t expect to go

You want to resolve the matter without resorting to litigation, Tarnok said. 

Even if a resident becomes convinced that they will win their case, their tune will likely change as they try to find a lawyer to represent them in a court battle, Cicero said. More often than not, parking disputes are resolved when a lawyer contacts a shareholder.

A good legal team will be prepared for a court battle, but ideally, will help you avoid one. Tarnok recommends slowly amping up the pressure on the resident until they agree to live by the building’s rules. 

“There’s a layered strategy of pressure,” Tarnok said. “Notices go out initially by the property manager or the board, followed by an attorney’s letter, and you continuously increase the pressure and highlight the severity of the violation until it is resolved.”

New York City real estate attorneys Jonharold A. Cicero and Christopher M. Tarnok are partners at the real estate law firm DL Partners, offering innovative legal services to co-op and condo boards, developers, condominium sponsors, architects, contractors, property owners and brokers. For a complimentary 15-minute consultation on a real estate matter, send an email to Christopher or call (212) 624-4185.