New York based property management firm, All Area Realty Services blog. Find tips for Co-Op Boards & Residential Building Management.

When and How to Hire a New Property Manager

Posted by All Area Realty Services Team on Aug 30, 2018 11:02:00 AM

As a co-op board it can be intimidating to know when and how to find a new property manager. Hiring new co-op building management is a serious commitment like that of a marriage. You need to learn as much as possible about this new partner before you take the big leap. This is one of the biggest decisions you will have to make as a co-op board.

The most common complaints about property management are to-do lists grow instead of shrinking, phone calls go unreturned, and that the cop-op board’s relationship with the property manager is conflictive.

However Here Are The Real Issues To Look Out For:

  1. The manager provides vague financial statements, without original invoices.

This is a major red flag! Without detailed invoices there’s no true record of where the money went to. The property management could be using your money to fix things in their unit or for any number of personal things.

2. The manager makes surprise and unauthorized expenditures.

There was an incident with The Normandy, a 250-unit co-op on Manhattan’s West Side, and their management. The co-op board discovered that their property manager was spending money on personal attorney fees, a caterer for his wedding, his car repairs, and a whomping $85,280 “petty cash fund.”

Even if you notice small inconsistent unauthorized expenses it could be a sign of a major hidden issue.

3. The manager loses interest.

Even managers that have been in place and given great service in the past may need to be replaced. Over time managers can get bored and their performance can go on a decline.

Once You’ve Parted Ways, How Do You Find a New Manager

The best way is to compile a list of possible property management companies. Make this list through word of mouth, talking to the co-op board lawyer and accountant, reading industry publications, and seeing who manages nearby buildings.

If you have had any of these incidents occur with your property management it’s probably time to move on to find a better match for such a serious partnership. It’s intimidating but not impossible to find your perfect match, especially by using the tactics given above.

All Area Realty Services is New York City’s leading real estate management company specializing in full-service professional property management for cooperative and condominium boards in the Manhattan area

Topics: Co-Op Building, Property Management, Co-Op Board