Buying a condominium unit in NYC is often more expensive than buying into a co-op. Yet, doing either of these options can be a savvy decision as they can be cheaper than a house. Residents don’t have to mow lawns or clean their windows. Plus, they can enjoy amenities like an in-house gym. And, if the Harlem condo bylaws allow owners to rent out their units, they can get a good income.
The building’s management is one of the biggest things that affect a property owner’s enjoyment of their condo unit and/or the return on their investment. Good management provides investors with a hands-off approach, peace of mind, and equity growth. Bad management makes it harder for owners to diversify their portfolios.
Here are the hows and whys:
Good Management Prevents Problems
One facet of good management is having routine walk-throughs. The manager can see first-hand what’s going on in their building’s common areas. They can take note of small issues and make changes before they become big problems. A manager doing walk-throughs also has more chances to interact with residents to field their concerns. A professional Harlem property manager conducts yearly walkthroughs with a licensed contractor to recommend scheduled maintenance and determine the lifespan of aging equipment. This is done so that our budgeting team can work with the board to more accurately budget both long and short-term needs.
The City of New York requires its residential buildings to undergo professional inspections. For instance, Local Law 152 states that condos and co-ops must have their building’s gas piping inspected every 4 years. There are also inspections for structural soundness, fire safety, elevator safety, and more. Good Harlem property managers will ensure that they all get done on time. They will also see to any repairs or changes recommended during the inspection.
These procedures can be expensive and may raise the monthly payments that owners have to make. However, the inspections and repairs can prevent high fines, damage to property, decreases in equity, and loss of life.
Bad Management Decreases Selling Price
A good condominium owner can keep their unit neat and tidy; they can make intelligent interior design and renovation choices. They can do all the right things to increase the value of their individual unit, but if bad management of a condominium’s common areas is not as attentive, their selling price will be less than what they could have sold it for.
If prospective buyers walk through an outdated lobby and drab hallways, then they get a negative impression of the building. Unaddressed issues with utilities can give buyers leverage to lower the selling price further if they do decide to proceed with the sale.
Furthermore, active violations that were flagged during building inspections affect a property owner’s ability to sell their unit. The Department of Buildings (DOB) makes violation information public until the issue is resolved. Plus, the owner can’t sell or refinance their property. Typically, banks will deny lending if there are too many owners renting their condos and/or too many owners in arrears on HOA fees and common charges. Moreover, when you reduce the number of banks lending within a condominium complex, you also reduce your potential buyer pool. A reduced buyer pool creates less competition which has a direct relationship to the overall property value.
Bad Management Affects Loans and Refinancing
Buying into a poorly maintained condominium is a bad investment. This lessens the property owner’s ability to ask for better loans. Banks are conservative when it comes to financial decisions, and they take a dim view of someone who has previously made poor choices.
Harlem Property Management Provides Good Management
Harlem Property Management is the authority on co-op and condo building management in Upper Manhattan and a member of the Real Estate Board of New York. We specialize in managing condos, co-ops, and multi-family buildings up to 99 units.
So, if your building needs a good manager to deal with daily management and inspections, contact us. We’ll keep your costs down and improve your owners’ equity in the long run.