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

A Board President Resigns & Your Property Management Company Doesn't Renew Their Contract...Now What?

Posted by All Area Realty Services Team on Mar 28, 2019 4:42:11 PM

 

What happens to a co-op when the board president resigns and the property management company doesn't renew their contract? What can a building manager do to right things when everything is going badly?

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More often than not, a manager will fight to rebuild the working relationship. When an issue arises, the property management company should sit down with the board to work out any differences. This allows an open discussion and for action to be taken.  That being said, it will not always be a good working relationship and a property manager needs to assess whether it is profitable enough to warrant the extra stress.  Also, some of the board members may never see eye to eye and the property manager plays referee at the detriment of not getting anything accomplished.

When the co-op board deteriorates, so does the building. The property management company needs to remind the board of its leadership role, but if those reminders are not followed, then the board-management relationship can be severed. If the board has been making bad decisions due to a few members, it is up to the property manager to try to realign the situation. At times, the property manager can work with the board to develop a cohesive objective. If a common denominator can be found then the board, property manager and building can move in a positive direction.

If you serve on a co-op board or condo board and need professional property management services, contact All Area Realty Services and find out why our over 30 years of experience and loyal clients make us experts.

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

 

Topics: Property Management, Co-Op Building

The Gist of Rent Controlled Apartments in New York

Posted by All Area Realty Services Team on Mar 20, 2019 4:02:38 PM

Most New Yorkers are renters. In New York City, there are more than 3.2 million units with about 2.2 million being rentals. This is about 63% of New York’s housing stock. More than half of these rentals are subject to some kind of regulation. However, it is not easy to get a rent-regulated apartment.

The most common rent-regulated units are rent stabilized apartments. They have guidelines which restrict increases until the apartment hits market value, which is determined to be $2,774.76 a month.  However, the vacancy rate for a rent stabilized unit is about 1 percent for postwar units and about 2.5 percent for prewar units. Market-rate rentals are about 6 percent.

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Rent-controlled apartments are very rare. Tenants who live in a rent-controlled apartments, receive the most protection because the leases strictly limit rent increases and make it difficult to evict tenants. These units were created due to the housing shortage after World War II. These units are no longer available to new tenants.

At this time, there are nearly 22,000 rent-controlled units in NYC. If you do not live in one already, then chances are that you will not get one. When a rent-controlled unit becomes available, the unit will be converted either to a rent-stabilized or a market rate apartment. 

New York City has about a third of owner-occupied homes which shows that owning a home is a dream for most New Yorkers.

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

 

 

Topics: Property Management, Rentals

Are You Thinking of Hiring a Property Manager?

Posted by All Area Realty Services Team on Mar 5, 2019 4:34:07 PM

 

Do you need to hire a property manager? Many property owners, condo boards, and co-op boards may be hesitant to hire one because a bad property manager can have long lasting effects, including financial, on your building.  However, hiring a great property management company is a great asset. Here’s some important characteristics to look for when considering a property management company.

Experience is extremely important. Ask how many properties they have under management and for how long.  Also ask if they have turned around troubled properties. An experienced property management firm will have thorough knowledge of local laws, regulations and standard operating procedures.

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A property manager should care for your property as if it was his or her own. Property managers should have a good understanding of the difference between internal rate of return and net present value and be able to calculate cap rates and cash on cash returns. This helps to see the big picture and to make informed and expertly guided decisions - together.

Persistence is an important trait because there will be delays with contractors, unruly tenants to deal with, and buyers who may have unrealistic expectations. When interviewing, look for a property management company that listens and has great customer service skills.

Having a successful property, is truly a balancing act. At times, the property manager will need to aggressively track down late payments and hold a contractor to task. Your property manager should always take on challenges on your behalf. 

A property manager will need to be extremely professional because he or she needs to get along with board members, residents, contractors and others. Look for someone who speaks professionally, treats others with respect, and does not shy away from responsibility AND accountability.

Communication skills, written and oral, are important because the property manager needs to convey what’s occurring at the property. Clear communication helps reduce disputes and ensures that the property runs like a well-oiled machine. Since there are so many moving parts, a property manager needs to be extremely organized.  Property managers need to be well versed in technology because new technologies are being introduced all the time.

How a property management company deals with problems is important because there are things that can go wrong. The more flexible the property manager is, the more he or she will react properly to any unforeseen situation.  They should be willing to think outside the box and be committed to ongoing improvement in how they service your property.

All Area Realty Services knows what it takes to run buildings smoothly and efficiently while keeping both tenants and owners happy.  With over 30 years of experience, and many clients with All Area Realty Services for decades, All Area can be trusted with taking care of your building and tenants. 

Topics: Co-Op Board, Property Management, Condo Board Association, property manager

Considering Hiring A Professional Property Management Company?

Posted by All Area Realty Services Team on Jan 24, 2019 5:32:52 PM

 

Property management is the operation, control and oversight of real estate. It is a demanding profession because there are many facets such as managing the accounts and finances of different buildings and participating in or initiating litigation with tenants, contractors and insurance agencies. A property manager needs to be informed on applicable municipal, county, state and federal Fair Housing laws and practices.

Also, the property manager is the liaison between the board, the property owners, residents and personnel. Good communication is an essential and crucial skill for a property manager. Just as important is understanding the processes and systems used to manage the property, including acquisition, control, accountability, responsibility, maintenance, and disposition.

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Property managers need to have good listening skills because some owners just need to speak to someone regarding their apartment. Also, a property manager should be organized, honest and responsive.  Another trait is business savvy because you are running a business (the co-op) and need to negotiate with all vendors to get the best price to be most efficient for your property otherwise you are wasting co-op money.

Property management is a fairly new profession. America developed fairly big cities and the real estate industry formed and property management was not far behind. Many investors bought land and property and hired others to manage and maintain it. After the Depression, the size and scope of property management rapidly developed to become what we know today.

There are a few ways to start in property management. In New York City, there are very active chapters of professional organizations, which provide opportunities for education, continuing education and accreditation. Having a business and financial administration background corresponds well to property management. New York City’s property managers do not have to have a license but if they collect rent and handle tenants, then they need a real estate broker’s license.

Most days, a property manager will pick up checks, review projects and work with vendors. These seemingly mundane tasks are required to keep everything running smoothly at the buildings they manage. However, a property manager’s job is never dull and he or she needs to be prepared for whatever is thrown at them. For example, a massive storm can hit and flood buildings and the property manager needs to take care of the residents and deal with the insurance company. At times, a property manager will have to go to housing court to testify at a hearing because a tenant failed to pay rent or breached a provision of the lease. Property managers have a wide range of duties from physical to administrative but the most important duty is working with board members to provide the best environment for all residents.

Property managers have a tough job but if you love what you do, it makes the tough things easier and loving your job makes for a successful property manager. When you help people, you are making a positive change in the world around them.

If you serve on a co-op board or condo board and need professional property management services, contact All Area Realty Services and find out why our over 30 years experience and loyal clients makes us experts.

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

 

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

7 Responsibilities of a Property Manager

Posted by All Area Realty Services Team on Dec 11, 2018 1:43:48 PM

A property management is often hired by a co-op or condo board to manage the day-to-day operations of a building. A property manager's responsibilities will vary depending on the needs of the board they were hired by, but their core mission is always the same, to ensure that the properties they are entrusted to manage, operate smoothly. Listed below are 7 of the most common responsibilities of a property manager.

1. Rent Responsibility 

Handling rent issues is one of the main responsibilities of a property manager. This includes: 

  • Setting Rent: The property manager will set the proper rent level based on the market where the building is located and comparable properties in the area. 
  • Collecting Rent: To ensure optimal cash flow they will set a date to collect rent each month and enforce late fees. 
  • Adjusting Rent: A property manager has knowledge of state and municipal laws pertaining to rent increases and decreases. They can set a rent increase by a fixed percentage each year while still adhering to these laws. 

2. Tenant Responsibilities 

Another core responsibility of a property manager is managing the tenants. A property manager will be involved in all areas, including: 

  • Finding Tenants: Filling vacancies is another responsibility of a property manager. They know where to place advertisements and what to include in the advertisements to attract the quality tenants you want. 
  • Screening Tenants: To decrease your chances of being accused of discrimination, a property manager will have a consistent screening process, that will include credit checks and criminal background checks. An experienced property manager will have the insight necessary to select the quality tenant you want.
  • Handling Leases: This can include, but is not limited to setting the lease terms and determining the amount of security deposit that will be required. 
  • Handling Complaints/Emergencies: A property manager will handle maintenance requests, noise complaints, and they will have the contacts necessary to handle emergency situations. 
  • Handling Move Outs: After a unit owner moves out, the manager will inspect the unit, check for damages, and determine how much of the security deposit will be returned to the tenant. A manager is also responsible for cleaning the unit and repairing damages. 
  • Dealing With Evictions: If a tenant is not paying rent or has infringed upon the terms of the lease, a property manager will know how to properly file and move ahead with an eviction. 

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3. Maintenance and Repairs 

A property manager will ensure that the building is habitable and safe at all times. They are responsible for regular maintenance and for handling emergency repairs. 

  • Property Maintenance: A property manager's duties include performing preventive property maintenance. They will hire someone to exterminate, check for leaks, landscape, shovel snow, and remove trash. 
  • Repairs: A manager has a large network of trusted plumbers, electricians carpenters and other contractors to ensure repairs are handled properly and quickly. 

4. Knowledge of Landlord-Tenant Law

A manager will have a thorough understanding of statewide and national laws regarding the proper ways to: 

  • Screen a tenant
  • Handle security deposits 
  • Terminate a lease
  • Evict a tenant
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5. Supervising Responsibilities 

  • Other Employees: A property manager is responsible for making sure that all other employees of the building are doing their jobs. Setting the salaries of other employees and firing them can also fall under the duties of a property manager. 
  • Vacant Properties: A manager can even be hired to look after a vacant property. The property manager will perform routine checks for vandalism, perform routine maintenance, and make sure contractors are completing their work on schedule. 

6. Managing the Budget/Maintaining Records 

Managing the building’s budget and maintaining all important records can be another responsibility for a property manager. 

  • Managing Budget: A manager is required to only operate within the budget of the building. There is only one exemption, in an emergency situation where the unit owners or the investment property are in danger, the property manager will hold the right to use their judgment to call for repairs without concern for the budget. 
  • Maintaining Records: The property manager will keep records regarding all income and expenses; a list of all inspections, signed leases, maintenance requests, all complaints, repair records, costs of repairs, and records of rent collection. 

7. Responsible for Taxes

Based on your preference, the property manager can either file the taxes for the building or assist you in filing the taxes. 

These are just seven possible responsibilities of a property manager, and as mentioned above their duties can be created around the areas your building needs the most help with. At All Area Realty Services there is a wide variety of management contracts to befit any building, so if you find you are on the market for a new property manager contact All Area Realty Services to schedule a consultation. 

All Area Realty Services knows what it takes to run buildings smoothly and efficiently while keeping both tenants and owners happy.  With over 30 years of experience, and many clients with us for decades, you can trust All Area Realty Services with taking care of your building and tenants. 

Topics: Co-Op Board, Property Management

The House Rules of a Condo and Co-Op 

Posted by All Area Realty Services Team on Dec 5, 2018 2:38:53 PM

Are you interested in living in a co-op or condo in the city? If yes, then it is important to know that these buildings have a specific set of policies, called house rules. House rules are designed to guarantee harmony amongst neighbors by governing the standards of everyday behavior. These rules are different depending on the co-op or condo you are interested in, and it's important to know and understand these rules before signing any contracts. 

Where Can You Find the House Rules? 

Ideally, the house rules will be listed in one place. Unfortunately, this isn’t always the case. The house rules can be listed in:

  • The bylaws of a co-op 
  • A co-op’s proprietary lease 
  • A condo's declaration of covenants 
  • The conditions and restriction (CC&R) of a condo

To find the exact location of the house rules of a co-op or condo ask the listing agent.  

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Possible House Rules 

House rules can govern your conduct in common areas such as elevators and hallways, and in your own apartment. Here are a few examples of possible house rules: 

  • The public halls and stairways of the building shall not be obstructed or used for any reason other than ingress to and egress from the apartments in the building. 
  • Children are prohibited from playing in the public halls, stairways or elevators. 
  • No disruptive noises or objectionable odors may be produced upon or emanate from any building
  • Each Unit Owner shall keep his unit in a proper state of preservation and cleanliness. 
  • Each Unit Owner must obtain extermination services for the Units at such intervals necessary to maintain the Units free of rest, mice, roaches, and other vermin. 

The Enforcement 

If you ever have an issue with a neighbor it is best if it is resolved civilly and quickly. If the co-op board is involved it may have the right to impose a fine. Worst case scenario if the issue is ongoing with repeated violations the board could ask you to leave the building under terms of a proprietary lease. 

Co-Op Versus Condo

A co-op’s board has more power over its shareholders than a condo over its unit owners, so their house rules are generally stricter. However, this does not mean you can overlook a condos house rules. It is still important to know and comprehend a condo’s house rules before you put in a bid for a unit.

What House Rules Cannot Cover

House rules can’t be used to discriminate against an individual or a group of people. If you want to rent or buy a unit you are protected by the Fair Housing Act. The Fair Housing Act will protect you from being discriminated against due to race, color, national origin, religion, sex, disability, or the presence of children. 

House rules may sound restrictive, but it is important to realize they are also protecting your rights as a neighbor. House rules are protecting your right to a clean and peaceful living environment. Every building has a different set of policies, so remember to always be familiar with the house rules before committing to any co-op or condo. 

All Area Realty Services knows what it takes to run buildings smoothly and efficiently while keeping both tenants and owners happy.  With over 30 years of experience, and many clients with us for decades, you can trust All Area Realty Services with taking care of your building and tenants. 

Topics: Co-Op Board, Property Management, condo

When Should You Hire a Property Management Company?

Posted by All Area Realty Services Team on Nov 26, 2018 2:11:04 PM

iStock-640177478One of the biggest decisions you will make as a co-op board is whether you should hire a property management company. Some boards manage their buildings efficiently on their own, while others need more assistance. The factors discussed below will help you and your fellow board members decide if hiring a management company is the right decision to protect your investment. 

What Does a Property Management Company Do? 

Some duties a property management company can fulfill are:

  • Dealing directly with prospects and tenants 
  • Marketing available properties 
  • Collecting rent
  • Handling maintenance and repair issues
  • Responding to tenant complaints
  • Pursuing evictions 

In addition to these duties, a management company such as All Area Realty Services, uses their expert experience and knowledge to guide you through protecting and maximizing your investment. 

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Hiring a property management company is not right for every co-op board. Hiring a management company has advantages and disadvantages depending on your board's unique needs. Use the following listed factors to determine if hiring a management company is the right decision for your board. 

You should consider hiring a property management company if:

There are a lot of units in the building. The more units you have the more you will benefit from a management company. 

  • You’re not interested in the day-to-day aspects of management. If you find being hands-on in management mundane or stressful, consider hiring a management company. 
  • You don’t have the time to devote to the demands of managing the building. If you already have a full-time job you may not have the time to devote managing the building. In many cases, managing can be a full-time job in itself. 
  • You can afford the cost. 
  • You are overwhelmed with management tasks. If the daily tasks of management are becoming stressful and overwhelming it may be time to hire help. 
  • You don’t want to be an employer. A management company is an independent contractor, so you don't have to worry about the burden of being an employer.  

How to Find a Good Property Management Company 

Finding a trusted management company can seem overwhelming at first, but here are a few tips to selecting the right one: 

  • Ask for recommendations from colleagues and your local apartment association.
  • Search professional directories on the Internet. 
  • Interview companies thoroughly making sure all your questions are answered.

Handing over the reins to your investment isn’t an easy decision to make. But if you resonated with any of the factors listed above it may be time to hire a property management company. A management company can help give you the maximum return on your real estate investment and alleviate any undue stress. 

 

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

Do You Know Your Rights As A Co-op Owner?

Posted by All Area Realty Services Team on Nov 20, 2018 4:57:31 PM

So you’ve worked hard and agreed to their rules, and now you’re a co-op owner.  There are a multitude of NYC laws and guidelines that protect you as a tenant. If you find yourself running into problems as a co-op owner it is important to learn your rights to discover what you can do to protect them. Here is everything you need to know. 

What determines your rights?

The rules at your co-op are derived by three types of legalities. In order, they are your proprietary lease, the by-laws of the building, and laws that protect you from illegal leases or by-laws. There are state laws, local laws, and even federal laws to protect you. Together these three legalities work together to balance each other out and create a fair living experience for you. 

Proprietary lease 

This is provided to you when you buy your co-op, and it informs you of the terms in which you will have to abide by in your building.  This will include:

  • Maintenance fees
  • Pet allowance
  • Other terms that are unique to each building 

By-laws

The by-laws of the co-op outline the relationship between the board and unit owners such as yourself. The by-laws will include: 

  • Who can serve on the board
  • How members are elected
  • How owners can request information
  • The responsibilities and powers of the elected board

State, local, and federal laws

These laws are the final say in the co-op living laws. If a proprietary lease or by-law contradicts a state or federal law it is not legally binding. 

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Common questions regarding co-op tenant rights

Here are some of the most commonly asked questions. Take some time to read them and see if your building is infringing on your tenant rights. 

Q: Am I responsible for all building and unit maintenance? 

A: You are responsible for the maintenance of the interior of your unit. This will include:

  • Walls 
  • Ceilings
  • Windows 
  • Floors
  • Frames
  • Painting and decorating
  • Repairing and replacing plumbing 
  • Gas and heat fixtures
  • Any appliances 

The building is responsible for any gas, steam, water, or other pipes within the interior of your unit. 

Q: Are there temperature regulations the building is required to abide by? 

A: There are no laws, unfortunately, that requires your co-op to install air conditioning or use an existing unit in communal areas. But the units are protected by the warranty of habitability, so shared areas should be heated when necessary. 

Q: Can a neighbor be evicted? 

A: Yes, it is possible for an owner to be evicted. If they are disruptive, unable to abide by the building’s rules, or are breaking federal laws. 

If you’d like to potentially have a shareholder evicted you will need:

  • A precedent that isn’t just a personal disagreement. 
  • Incidents backed with documentation such as staff logs, security footage, witnesses, etc. 
  • To fall back on the Business Judgement Rule which basically states that if an unruly shareholder claims the board has singled them out, their argument will be tossed out if the board has a clean slate. 

Q: Can I have pets?

A: This depends on your individual co-op's rules. Often even buildings that allow pets still have strict guidelines. Speak with your co-op board if your lease isn’t specific. 

Q: How can I protect my investment? 

A: When looking to buy a co-op it is important to look for one that you feel you will profit from when selling. However, there are situations that can take you off course.

For example, if your unit is a corner unit with plenty of windows or a top floor unit with amazing views your co-op has development rights. This means they can add on to the building, leading to annoying construction. 

If annoying or noisy construction is a problem of yours, you may be able to take legal action based on what's outlined in your proprietary lease. This does not guarantee that you will be able to prevent construction that could lower the value of your unit though. 

Q: Can my co-op board require renters insurance? 

A: Yes, they can, but this is a good thing. Without renters insurance, you’re putting yourself at risk for a financial disaster. Renters insurance covers your unit in case of a fire, theft, and other circumstances. 

Q: Can I have a roommate?

A: Yes, you can have a roommate as a co-op owner. Under the “Roommate Law”, you can have one additional occupant in addition to immediate family, but you have to be currently living in the unit at the same time. Also, You only have to give the board notice within 30 days of them moving. 

It should be noted that if you’re collecting rent from your roommate this could be considered subletting which isn’t usually allowed in co-ops. 

Q: Can I make renovations on my unit?

A: All renovation work no matter how small requires approval by a co-op board. Your co-op does have the right to refuse approval for renovations and even include a fee for the approved renovations. 

Buying a co-op does not mean you’re giving up all rights as a tenant. Although, legal guidelines can be confusing at times, stay diligent and learn all your rights. There is a right and legal answer out there for you, so don’t give up hope. The key is knowing your rights because that will ensure they are never infringed upon. 

All Area Realty Services knows what it takes to run buildings smoothly and efficiently while keeping both tenants and owners happy.  With over 30 years of experience, and many clients with us for decades, you can trust All Area Realty Services with taking care of your building and tenants. 

Topics: Co-Op Board, Property Management

A Co-Op Board Fights Sublets with Airbnb Records

Posted by All Area Realty Services Team on Nov 15, 2018 1:17:37 PM

In recent news, a co-op board filed a lawsuit to terminate a tenant's proprietary lease due to illegal subletting. The co-op building's property manager caught some suspicious looking visitors coming and going from the accused resident’s apartment. He notified the board immediately, and with some digging, they found the tenant was subletting the space on Airbnb. Eventually, due to the resident’s unwavering denial, the co-op board had to subpoena Airbnb’s records for indisputable proof. To this day the case is still ongoing in court. Here are three steps you can take to prevent a similar scenario from happening in your building.

Preventative Measures

If resident’s renting out their apartment, on major concern is that there needs to be policies in place that make Airbnb-ing more difficult. Some examples are:

  • A rule prohibiting guests from staying in an apartment without the tenant-shareholder.
  • Prohibiting doormen from holding keys for guests.
  • Prohibiting the doormen from allowing guests in who haven’t been approved.
  • A rule prohibiting guests from entering who aren’t accompanied by the apartment owner.
  • Creating a system where guests have to register with the building before entering. 

These rules if enacted make it harder for residents to have a constant flow of strange guests entering and leaving the building. 

First Warnings 

If a unit owner has found a way around the rules and is using the apartment as a short-term rental, the first step is to send a letter to the resident demanding they stop. This letter does not have to be a formal warning and can come from the board or your property manager. Although a lawyer is not necessary at this point, but a lawyer could also send the warning letter. 

If the resident ignores the first warning and persists, the next step is to check your by-laws. These will hold all the provisions against short-term rentals and rules informing you how to notarize the resident that they are in violation. You should have a formal warning written up and signed by the co-op board president. A formal notification such as this will put your board in proper legal standing, if legal action becomes necessary. 

It is important to note that in co-ops the board is also required to notify the tenant-shareholder’s lender. This may seem like an annoying extra hoop to have to jump through, but it actually could work in your favor. The lender may also start urging the tenant to stop subletting the apartment, giving the tenant extra pressure to cease their activities. 

For condos the by-laws may give the board the right to fine a resident for violating the rules of the building. This could prove to be a helpful step in preventing legal action. 

Taking Legal Action

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After you send a formal warning the owner or shareholder has 30 days to end their illegal activities. If they continue to rent out the apartment, your next step is to check the by-laws or proprietary lease for your building's policies on recovering legal fees from a resident

A co-op has the option to start the process of a “Pullman Case” to evict the shareholder on “objectionable conduct.” A condo has to go straight to the New York Supreme Court to request an action for declaratory judgment against the accused resident. This option is also available to co-ops, but unlike condos, they also have the choice of housing court

In court you'll need to state that by violating the rules, the owner is challenging the authority of the co-op board to enforce rules. Next, ask the court to declare that the board has the right to enforce the rule and permanently prohibit the owner or shareholder from violating the rules in the future. As long as you come prepared with evidence you should win the case. 

All in all legal action should be your last resort, as it can potentially cost tens of thousands of dollars, not to mention the stress and hassle of the process. The benefit of going to court is that if the resident fails to comply they can be held in contempt of court. Again, this should be a last resort. Hopefully, if you’re dealing with a resident who is renting out their apartment on Airbnb, or any other source, they will cease their disruptive activity after receiving their first warning. 

If you serve on a co-op board or condo board and need professional property management services, contact All Area Realty Services and find out why our over 30 years experience and loyal clients makes us experts.

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

 

 

 

 

 

 

 

Topics: Co-Op Board, Property Management, Condo Board Association, Co-Op Building, Co-Op Board Lawsuit

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 Board, Property Management, Co-Op Building