What's considered reasonable co-op maintenance?

Apologies in advance … I’m sure this is probably a silly question … but what is considered high maintenance on a co-op unit? I’ve been looking at 1-bedroom units priced in the mid to high 200s near and around Flatbush. In one building maintenance fees may be as low as $430, in another building they’re pushing $700, and everything in between. I’m utterly confused. I know that there are factors such as HFDC status and size, but it still seems to fluctuate a lot. What does this range indicate in the life of a co-op? Again, sorry if this is a redundant question. Thanks!

tracyj

in Co-Op Related 13 years and 10 months ago

3

Please log in, in order to post replies!

3 replies

Newest Oldest

slopegirl | 13 years and 10 months ago

string(1) "1"
object(WP_User)#4935 (8) {
  ["data"]=>
  object(stdClass)#4908 (12) {
    ["ID"]=>
    string(5) "34682"
    ["user_login"]=>
    string(9) "slopegirl"
    ["user_pass"]=>
    string(34) "$P$BmPjvLLXxuJIHCzkqN9h9/FLl7akcD."
    ["user_nicename"]=>
    string(9) "slopegirl"
    ["user_email"]=>
    string(21) "sarah_11215@yahoo.com"
    ["user_url"]=>
    string(24) "/forums/users/slopegirl/"
    ["user_registered"]=>
    string(19) "2017-08-10 13:49:17"
    ["user_activation_key"]=>
    string(0) ""
    ["user_status"]=>
    string(1) "0"
    ["display_name"]=>
    string(9) "slopegirl"
    ["spam"]=>
    string(1) "0"
    ["deleted"]=>
    string(1) "0"
  }
  ["ID"]=>
  int(34682)
  ["caps"]=>
  array(2) {
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["cap_key"]=>
  string(15) "wp_capabilities"
  ["roles"]=>
  array(2) {
    [0]=>
    string(10) "subscriber"
    [1]=>
    string(15) "bbp_participant"
  }
  ["allcaps"]=>
  array(4) {
    ["read"]=>
    bool(true)
    ["level_0"]=>
    bool(true)
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["filter"]=>
  NULL
  ["site_id":"WP_User":private]=>
  int(1)
}

Also keep an eye on how much of the maintenance is tax deductible. Some buildings have a higher underlying mortgage, and some are paid off, that makes a big difference in monthly maintenance payments, but of course tax deductibility is a slight compensation for higher monthly cost. If you’ve never lived in a coop before I’d say the most important Qs are how much is in the reserve fund and how often does the building do assessments? Worth knowing what major repairs may be looming, or what has recently been done. How old is the roof? The furnace? The windows?? When you do an inspection, look at all of that stuff. Buildings can be well maintained or poorly maintained and you should know what you’re getting into.

bkmatthew | 13 years and 10 months ago

string(1) "1"
object(WP_User)#4934 (8) {
  ["data"]=>
  object(stdClass)#4933 (12) {
    ["ID"]=>
    string(6) "178139"
    ["user_login"]=>
    string(9) "bkmatthew"
    ["user_pass"]=>
    string(34) "$P$BlBrES4/hU.e7n8TttMvINvfAYeU8V."
    ["user_nicename"]=>
    string(9) "bkmatthew"
    ["user_email"]=>
    string(13) "bohuma@me.com"
    ["user_url"]=>
    string(51) "http://bstoner.wpengine.com/forums/users/bkmatthew/"
    ["user_registered"]=>
    string(19) "2017-08-10 13:40:15"
    ["user_activation_key"]=>
    string(0) ""
    ["user_status"]=>
    string(1) "0"
    ["display_name"]=>
    string(9) "bkmatthew"
    ["spam"]=>
    string(1) "0"
    ["deleted"]=>
    string(1) "0"
  }
  ["ID"]=>
  int(178139)
  ["caps"]=>
  array(2) {
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["cap_key"]=>
  string(15) "wp_capabilities"
  ["roles"]=>
  array(2) {
    [0]=>
    string(10) "subscriber"
    [1]=>
    string(15) "bbp_participant"
  }
  ["allcaps"]=>
  array(4) {
    ["read"]=>
    bool(true)
    ["level_0"]=>
    bool(true)
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["filter"]=>
  NULL
  ["site_id":"WP_User":private]=>
  int(1)
}

Co-op maintenance fees will be affected by the level of services offered (e.g. doorman, utilities included), the size of the underlying mortgage (if any) and the condition of the building. A building that has a doorman, gym, tenant lounge etc. is going to have higher running costs which are recovered through higher maintenance. If a building has a mortgage, that too has to be paid by the tenant shareholders. If a building has a lot of outstanding maintenance items, or needs major capital work (e.g. roof, repointing, windows, lobby, boiler) all these things add to maintenance. You, or your accountant/real estate lawyer need to take a look at the coop finances to work out what the coop is spending money on. Your lawyer will probably ask for the last couple of annual financial statements and the budget to work this out.

jameskoster | 13 years and 10 months ago

string(1) "1"
object(WP_User)#4930 (8) {
  ["data"]=>
  object(stdClass)#4936 (12) {
    ["ID"]=>
    string(5) "52369"
    ["user_login"]=>
    string(11) "jameskoster"
    ["user_pass"]=>
    string(34) "$P$BM0La06PQWl7vM8NZl7wpsLNbYH3Md."
    ["user_nicename"]=>
    string(11) "jameskoster"
    ["user_email"]=>
    string(23) "jkoster@jkosterarch.com"
    ["user_url"]=>
    string(26) "http://www.jkosterarch.com"
    ["user_registered"]=>
    string(19) "2017-08-10 13:38:03"
    ["user_activation_key"]=>
    string(0) ""
    ["user_status"]=>
    string(1) "0"
    ["display_name"]=>
    string(11) "jameskoster"
    ["spam"]=>
    string(1) "0"
    ["deleted"]=>
    string(1) "0"
  }
  ["ID"]=>
  int(52369)
  ["caps"]=>
  array(2) {
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["cap_key"]=>
  string(15) "wp_capabilities"
  ["roles"]=>
  array(2) {
    [0]=>
    string(10) "subscriber"
    [1]=>
    string(15) "bbp_participant"
  }
  ["allcaps"]=>
  array(4) {
    ["read"]=>
    bool(true)
    ["level_0"]=>
    bool(true)
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["filter"]=>
  NULL
  ["site_id":"WP_User":private]=>
  int(1)
}

Tracy: First of all, you’ll be making a better comparison if you look at maintenance per square foot. $1 per sq. ft. is pretty common in Manhattan, and $.75 per sq. ft. isn’t considered bad in Brooklyn Heights if the building is full service, 24-hour doorman, etc. Maintenance is really a direct reflection of the financial underpinnings of the co-op. As I’m sure you know, the maintenance pays for things like property tax on the building, staff salaries and benefits, common utilities and the size of the underlying mortgage, and it can be offset by rental income from commercial space with the building if there is any. To know if the maintenance is out of sync / too high, you really have to dig into the individual co-op’s financials to see if those items are in line. Good Luck!