Hiring a suitable management company for your building is perhaps the most crucial step to ensuring smooth building operations. However, choosing the right coop management team is far from a cakewalk. It is a necessary step because if your co-op management is done poorly, it could lead to several complaints. The most common ones include; incompatible personalities, unauthorized expenditures, the inability of the managing agent to provide a concise financial statement, etc.
If you’ve eventually decided to make the change from one to another, you also are tasked to ensure a smooth transition. Here are a few steps to guide you;
Step 1: How to find a managing agent
The easiest way to do this is to compile a list of prospective co-op management companies suitable for the job. If necessary, obtain recommendations from other building board members, attorneys, etc.
Step 2: Due diligence
Different buildings have different economic priorities. To be charged a lower fee annually for your building, you may need to take some strategic measures regarding the finances for the building. Such measures include structuring a separate fee for large projects or charging a higher fee for apartment renovations, alterations, or closing. You may also need to take into consideration the reputation of the agent or company and the experience of others they’ve worked with.
The most crucial step in selecting the perfect co-op management agent for you is to do your research properly. This will enable you to be fully informed about agents you partner with. Here are a few things to consider when selecting a new managing agent;
- Size– While smaller managing firms promise more personalized and intimate services when compared to much larger firms, larger management companies are more versatile and have deeper resources and contacts, which may eventually come in handy.
- Services– Determine what exact services you are going to receive regarding your building.
- Principals– Ensure you find out the owners of the managing company and confirm their level of influence in the day-to-day activities of the company.
- History– Find out exactly how long the managing company has been around.
- Account manager: You determine who exactly should be in charge of the accounts. You also ensure that the person is approved by the board.
- Monthly common charges or maintenance payments: You also need to ensure the managing agent makes proper provision for the avenue of payment for maintenance and common charges. Some common options include; lockbox, auto-debit, and online payment options.
- Monthly meetings and reports: You also need to determine the frequency of meeting the managing agent will have with the board. This meeting will include a review of the managing agent’s monthly report by the board.
- Using technology: Some management companies use technological innovations like Daisy to ensure customer-centric services.
Daisy is an end-to-end management company for condos & coops. The used technology is paired with a community-based building philosophy.
STEP 3 – Disclose known building problems
The issue of trust goes both ways when it comes to co-op management. You are obligated to fully disclose any problem your building may have to the managing agent you plan to hire.