Ballpark coop management fees

Before you interview management companies take stock of what you think your building needs. If you’re a fairly well established building with no big projects coming up then you probably just need someone to handle the bills, occasional hiring of tradesmen, etc, But if you anticipate you will need some very heavy lifting from them — like you have a big roof project coming or a boiler replacement — you need a management company that can work more intensively with and for you. Assess your needs and be clear with the prospective manager about them. Many boards and apartment owners are under the mistaken impression that for $24K they will get a full time manager who will be at their beck and call. The economics of the management business don’t make that possible. So go in with open eyes and clear expectations.

angelique.m.west

in General Discussion 9 years and 9 months ago

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anon200 | 9 years and 10 months ago

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Our self-managed coop is considering seeking outside management, and we’re just wondering what a ballpark fee for a standard management package would be. Is it usually priced as a percentage of yearly total maintenance, or dollar per square foot, or something of the sort? (We intend to get some quotes as well, but would to hear what we should expect, from your experience.)

mblevine | 9 years and 9 months ago

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Hey, I own a property management company that specializes in co-op and condo buildings (we manage 60 buildings at present time). Co-ops, unlike rental buildings, which are a % of the gross rent, will be on a per-unit basis. My firm charges a base min. fee of $24k per year in Brooklyn (that’s our structure, other firms in Brooklyn may be a lot lower), so depending on your size, it may not be worth it for you to go to an outside company – if you’re larger than 30 units, it may be easier to swallow a management fee.

I will say this, though, having a professional management company can save you in other ways (see my article here: http://ebmg.com/2016/05/to-self-manage-or-hire-a-management-company%E2%80%8A-%E2%80%8Athat-is-the-question/) that you haven’t thought of, so at the end of the day, you’ll have to weigh your options and expenses carefully.

resident2 | 9 years and 9 months ago

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It will depend greatly on the size of the building (how many units) as well as the size of the management company. If you are a smaller building you will be better off with a smaller local company.
If you are a larger building with on site staff, maybe a live in Super etc. then look a little further afield but you will always get service from a management company that has other buildings in your immediate area.
As for price of services; again it depends what you want and expect. Most will charge a basic monthly + for additional services such as fielding quotes for capital improvements, managing capital improvements etc.