There is a posting herein where the individual asserts raising maintenance is being “lazy”.
May I suggest that in a well run building, whether self managed or managed via a property management company, husbanding funds should be a way of life, de rigueur.
Thus, in a well run building, there are increases every year in maintenance fees (and perhaps assessments) to account for salary increases, utility increases, tax increases, insurance might be a bit variable and could even decrease if one is willing to front more of the deductible, preventative maintenance increases as the building ages.
To avoid increases is perhaps to invite insolvency.
To delay capital expenditures is perhaps flirting with disaster or at a minimum poor services to the residents, e.g.: lack of hot water, heat, leaky roof, etc.
To refinance is to condemn future owners to payments for improvements enjoyed by current residents. Not really fair when you look at it that way.
Remember, corporations borrow to create new or improved products and thus generate more revenue and produce more profits.
By borrowing, what new or improved products are generated that benefit the building / property? None!!
So why borrow? Why refinance?
Why pay interest expense that is of no value to the corporation (e.g.: building and owners)?
Think about it please.
Could anyone suggest a good roofing contractor for our Co-Op's brownstone roof?
Thanks,
David
Has anyone replaced an underground tank recently? Did you obtain the services of an engineering company? What was your experience?
I will appreciate your comments and recommendations.
AAA
I live in a nice new high rise in a 1 bedroom apt of 550-600 sq ft in midtown Manhattan. Rent is $3,300 which is killing me right now because bear markets suck with my income down significantly in the last two years (there are many morons I can thank for that). Perhaps I rented this apartment a little overconfidently based on a great first year of income in 2006 out of grad school. I am ashamed to admit the disgrace that I was laid off from my job with about 5 months of salary, but it is the case - and the rent is high. The building had a holiday note with the list of all the employees. Often the tipping that people do is based more on who has the power to be a pain in the ass than who has done the most labor.
There are roughly 250 apartments in the building.
Googling around, some other people gave a list of what they tipped for a similar building and it came out to roughly $600-$800!!!!!!!!!!
I was thinking $100 total until Google gave me a reality check...andI saw the list of 16 employees, most of whom I never met.
Our building's staff:
Resident Manager - Some person who I never met and never heard of. $20 (Google showed people give $200 quite often)
3 Handymen - One I never heard of ($10), One has been helpful on the three occassions we asked ($40)and one was helpful on the one time we requested help ($20). Googling showed that $40 was avg.
6 Concierges/DoorPeople - All friendly and very smily. I like them, but don't really know their names. All pleasant people though. They are not really doorpeople since they mostly sit behind the desk and do not actually open the doors and quite frankly, I can open the door myself - which have motion detectors to open the door. They get my larger pieces of mail and things that are signed for etc and are a first line of security. $20 each. Google had a $50 bare minimum for each.
6 Porters - Apparently a porter maintains a lot of the common space etc for the building. Don't know any of them. $10 each. Google said most people avg about $20 per porter.
So, the bill comes to $270...and it looks like, according to Google, that I am a super cheap son of a bitch that will get dirty scroogy looks for the rest of the year and shitty service for the year (though I demand almost no service).
So, am I cheap son of a bitch? Or are the people paying $600-$800 out of their minds? Or is it a bear market and I am not the only one who will seem like scrooge?
Confused
Is it proper procedure give a property manager a bonus,out of the condo funds(condo itself--board approval)or the unit owner gives or none
at all. I know the super or,handyman etc. gets.
Can a Board order a managing agent to run a credit check on a shareholder who is chronically in arrears? Someone told us we have to get permission from the shareholder first. We want to get a snapshot on his financial situation. He is a problematic shareholder in many regards so don't anticipate his cooperation.
any cop can reduce it's budgetw ith concerted, effective effort. Ther e is no need to get into the bad habit of continually raise the maintenence. if you have a really GOOD Board, they will cut costs in leaking areas (yes, there are mainy) and balance the increases in areas such as taxes.
I expect many coops will experience substantial increases in property taxes in the coming year.
How have your boards addressed this?
this will soon save your coop money. but what is the %?
I ran across a posting by an "Elise Brodsky" and was wondering how I might get in contact with her. Thanks. Rick.
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You give a false dichotomy by saying that to be fiscally responsible, one must raise maintenance yearly. This is a clever debate tactic, but untrue.
One can be fiscally responsible without resorting to lazy (i.e. uncreative) maintenance increases / assessments.
A creative board will look at such revenue-raising options as selling unused common areas, creating basement storage, adding to existing rental parking spaces, signing up with film/TV location companies, leasing rooftop space to communications companies, etc.
(One can also cut expenses, though this is generally in such long-term ways as submetering, installing a condensing boiler -- see Habitat front pager today -- etc.)
Such inventive but labor-intensive thinking can mitigate or stave off an increase in a particular year. For these reasons, I agree with the previous board member that simply raising maintenance or issuing assessments is the lazy way out.
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