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The primary responsibility of a managing agent is to ensure that both the interior and exterior of a building are properly maintained and cleaned. A building manager achieves this by hiring and supervising all necessary personnel for the effective operation and maintenance of the property.

Key ongoing hires by the managing agent typically include a superintendent (super), exterminator, and elevator servicing company.

A proficient building manager will conduct a physical inspection of the property at least once a month.

Unfortunately, many subpar management companies in NYC tend to “manage by crisis,” relying solely on complaints from owners or the super to identify issues that require attention.

Since the superintendent acts as the building’s primary eyes and ears, the choice of superintendent can significantly affect the ongoing condition of the building.

Larger condominium and cooperative associations often have a live-in super, while smaller buildings generally contract a part-time super who visits once or twice a week to clean the lobby, replace burnt-out light bulbs, and monitor for any necessary repairs.

Most managing agents have complete autonomy by their management contract to hire vendors for essential repairs costing less than a specified amount, such as $1,500. This provision enables managing agents to address repairs promptly without encountering pushback or delays from the building’s board.

However, it is common to find managing agents who rely on a handful of expensive and underperforming repair companies for every issue. Because management companies often lack a financial incentive to keep costs low, some managers may hire friends or accept the first quote they receive without seeking multiple estimates.

This lack of diligence can be particularly problematic in smaller buildings.

For example, if you own a condo in a 10-unit building that lacks a reserve fund, each apartment holds a 10% ownership stake in the building. If the facade needs restoration and the building manager presents a quote for $200,000, they might encourage you to accept it by claiming it’s from the “best company in the business.” Without a reserve fund, this would mean a special assessment of $20,000 for each unit owner.

If your neighbors, frustrated by the prospect of such a large assessment, take the initiative to seek additional quotes, they might find alternatives: one for $170,000 and another for $140,000.

By accepting the lower quote of $140,000, each unit owner would save $6,000 in out-of-pocket expenses. While the impact of large repair bills and inflated quotes is less apparent in larger buildings, it remains critical for board members and apartment owners to require their building management to obtain multiple competitive quotes whenever a significant repair is anticipated.

Co-op and condo building managers are responsible for ensuring that their properties comply with all building codes, environmental laws, local ordinances, and deed restrictions.

Additionally, a managing agent proactively ensures that all necessary actions are taken to adhere to state, federal, and municipal laws, codes, regulations, and orders. They also address any violations that may arise.

A managing agent is typically responsible for collecting monthly condo common charges or co-op maintenance fees from unit owners. This role also includes initiating legal proceedings or taking other necessary actions to collect any overdue charges.

Additionally, building management verifies and pays bills for services, work, and supplies related to the maintenance and operation of the building.

To assess the quality of your managing agent, consider their transparency regarding financial records. Here are some useful questions to ask:

• How detailed are the expense line items on the monthly statements?
• Did the managing agent obtain multiple quotes and share them with the building?
• Were the actual paid invoices made available to unit owners for review?

One of the more challenging responsibilities of a condominium or co-op managing agent is handling complaints from apartment owners.

Common examples of these complaints include maintenance issues, unreasonable noise from neighbors, residents leaving personal belongings in the hallways, illegal Airbnb rentals (in violation of NYC short-term rental laws), commercial use of residential units, after-hours construction, and safety hazards.

Managing agents are responsible for maintaining a comprehensive set of books, records, and documents related to the property’s maintenance and operation. These records may include the history of repairs, complaints and their resolutions, paid invoices, as well as inspection and registration records.

Hiring a managing agent can be a time-consuming process for small, medium, and large condominium and co-op buildings.

The challenges involved are threefold:

1. Finding suitable candidates for a managing agent.
2. Asking the right questions during interviews.
3. Convincing the board to terminate the current managing agent and hire a new one.

There are several effective strategies to find managing agent candidates in New York City, including:

• Ask the listing agent who sold your apartment or consult your buyer’s broker.
• Reaching out to friends who live in similar buildings.
• Consult your real estate lawyer.

Once you’ve identified a few candidates, it’s advisable to meet with each one at your building and conduct a walkthrough of the common areas, roof, and basement.

When interviewing candidates, consider asking the following questions:

• What current maintenance deficiencies do you observe in our building?
• What are the top three priorities for our building based on your observations?
• What experience do you have in managing buildings of comparable size?
• How often do you conduct physical inspections of the buildings you manage?
• What is your strategy for addressing after-hours emergencies?
• How do you approach obtaining quotes for large capital improvement projects?
• Could you please provide us with the financials and budget for the other buildings you manage?

Self-management is an excellent option for smaller buildings with a significant number of owner-occupants who are hands-on.

The primary advantage of self-management in smaller condo and co-op buildings is that unit owners are more invested in the decision-making process regarding hiring service providers and managing costs. This engagement helps ensure that expenses remain low while the building is well-maintained.

In simpler terms, a self-managed building with motivated owners can save between $10,000 and $20,000 each year by not employing a managing agent, while actually performing better in terms of maintenance and cost control compared to even the best property management companies.

However, many small buildings face the challenge of not having the budget to hire a reputable management company. Consequently, they often end up settling for mediocre managing agents who fail to effectively oversee the properties.