When a building is self-managed, the owners take responsibility for running the day to day operations of the building. These buildings normally have lower maintenance fees because the building saves money by not paying a managing agent.
The pros to living in a self-managed building are lower maintenance fees and the owners are responsible for making the monetary decisions and making sure that the money is not wasted on unnecessary services.
The cons are you will need to dedicate time to the building and you might lose one of your key players if the person decides to resign as treasurer because who will step in? Also, there are many layers to navigate through when dealing with NYC’s numerous ordinances and other tax requirements.
Make sure to review the financials of the building before buying because there is potential for incomplete, un-audited or fraudulent financials. It is important to do your due diligence before signing a contract for an apartment in a self-managed building. Request an inspection to make sure the building is current on routine maintenance and capital improvement projects. Your real estate attorney should review the building’s financials, budget, offering plan and board meeting minutes.
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.